Persistent talk of a possible bid from Italian insurer Generali is continuing to lift Aviva's share price.

Axa's $11bn acquisition of Winterthur Insurance last week, has sparked speculation of a fresh round of mergers and acquisitions in the sector.

Shares in Aviva have risen almost 5% since reports suggested Generali - itself believed to be a long term target for Axa - was circling Aviva. Today they rose a further 0.67% to 747p.

Both Aviva and Generali have declined to comment.

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