Britain's largest composite insurer, CGU, which has launched a £297 million (€377 million) bid to buy the 72 per cent of Hibernian Group that it does not already own, has reported a slight fall in nine-month operating profits to below the middle of market forecasts. Lower investment returns more than offset stronger life assurance profits and an improved underwriting performance in general insurance, CGU said.

Operating profits before merger integration costs fell 2.4 per cent to £603 million sterling in the nine months to September 30th from £618 million sterling in the same period a year ago.