Aviva, the parent company of Hibernian, reported a 27 per cent increase in its first-half profit today, just above its own target and at the higher end of analysts' expectations, while sales rose 25 per cent.
In Ireland, Aviva's new business sales increased by 61 per cent to €827.3 million from €517 million in 2005. The increase includes sales of €331 million through the new bancassurance partnership with Allied Irish Banks (AIB), which commenced at the end of January.
The integration of Ark Life and Hibernian Life & Pensions is proceeding as planned, the company said.
Life sales through Aviva's existing Hibernian broker channel were 23 per cent higher at €194 million (2005: €160 million), with strong sales of single premium unit-linked business reflecting the continued success of the guaranteed fund prior to its closure in June.
Pension sales through Aviva's existing broker channel were down from €357 million in 2005 to €302 million, though 2005 proved to be an exceptional year for pension sales.
Aviva said it expects growth will be fuelled by maturing SSIAs and from the continued expansion of the sales through AIB's branch network.
At group level, Aviva said operating profit in the six months was €2.52 billion, meeting the target indicated in a July trading statement.
Aviva issued a detailed update when it agreed to buy US rival AmerUs last month in a $2.9-billion deal to boost its undersized US unit after its attempt to merge with number two rival Prudential failed in March.
Aviva's total life operating profit rose 19 per cent to €1.5 bilion, with two thirds of that coming from the insurer's international business, while operating profit at its general insurance and health divisions climbed 23 per cent.