Norwich Union has increased its operating profit from general insurance by 30% for the first six months of 2004, to £408m, up from £313m.

Net premiums written also increased,to £2.7bn from £2.5bn, while net premiums written from Norwich Union Direct increased 19% to £434m.

Overall, NU recorded a combined operating ratio of 98%, improving from 99% for the same period last year.

It said that while rating increases were slowing, they continue to be achieved across NU's book.

It said the outlook for underwriting in personal and small commercial lines "remains favourable".

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