Shares in Aviva rose strongly in early trading as the insurance giant delivered a double digit increase in operating profits.
The group, which employs more than 1,000 staff at its base at its contact and administration centre at Pitheavlis, Perth, also cheered investors with a 10% increase in the interim dividend.
Operating profits for the period were 13% up at £1.32 billion, despite its general insurance arm being hit by higher than usual weather-related claims.
The company said its growth in the first half had been driven by its UK Life insurance business and the contribution from its fund management and digital operations.
Operating profits within the UK and Ireland life insurance business was 25% ahead at £711m, a figure boosted by the integration of Friends Life.
However, annuity sales were lower and the UK and Ireland general insurance and health business saw a 3% decline to £231m.
Despite the Brexit vote in June, group chief executive Mark Wilson said Britain remained a strong market for Aviva and it was continuing to invest in the country.
“We are delivering consistent, stable and predictable growth despite challenging market conditions,” Mr Wilson said.
“Our UK businesses delivered encouraging results. We are growing in the UK, we are investing in the UK. We like the UK.
“And we are also benefitting from Aviva’s diversity, with 42% of our earnings coming from outside of the UK.
“The 10% increase in the dividend, up 32% since 2013, is another step towards our target pay-out ratio of 50% and underpins our confidence in delivering sustainable and growing returns.
“We are continuing to maintain a strong balance sheet, with a solvency ratio of 174% toward the upper end of our working range.
“Aviva’s strong financial position and diversity mean we are well insulated from external events.
“We have deliberately designed Aviva to be resilient to a low interest rate environment.
“We remain confident in our ability to deliver on our key commitments to grow earnings, cash and dividends.”
