Aviva has reported a surge in operating profit within its UK Life business for the first half of the year, driven by the recent acquisition of Friends Life.
However, excluding the impact of the deal, both Aviva UK Life and Aviva Investors have seen year-on-year profits tumble.
The insurer’s H1 results, published last week, reveal UK Life profits rose by 17 per cent, from £476m in H1 last year to £555m this year. This includes a £120m contribution from Friends Life following its acquisition in April.
When the impact of the Friends Life deal is removed, profits for UK Life slumped 7 per cent to £449m, although H1 2014 included a £100m benefit from “expense reserve releases following actions to reduce the current and future cost base”.