Aviva’s UK general insurance business made an operating profit of £242m in the first half of 2011, up 6% on the £229m it made in the same period last year.

The company’s UK GI combined ratio dropped two percentage points to 96% from 98%, which Aviva attributed to its focus on writing profitable business and a one-point improvement in the expense ratio to 10.5%.

General Insurance net written premiums, excluding health, increased 14% to £2.2bn. Including health, net written premiums increased 12% to £2.5bn from £2.2bn. Operating profit including health fell 3% to £261m from £268m.

Personal motor net written premiums increased 24% to £705m (H1 2010: £569m).

Aviva said pricing in both personal and commercial motor in the UK remained strong, with rate rises of 21% and 10% respectively. However, the company added that pricing in other key lines remained more subdued, with a 6% increase in homeowner rates and low single digits in commercial non-motor.

Aviva also highlighted its efforts to broaden its general insurance business, including plans to grow its motor insurance business, launch a new online offering on aggregators, and extending its partnership agreement with HSBC to 2016.

Aviva H1 2011 UK GI results in £m (compared with H1 2010)

  • Operating profit: 242 (229)
  • Net written premium (including health): 2,510 (2,241)
  • Combined ratio: 96% (98%)