Aviva results beat profit forecasts

UK insurer Aviva beat forecasts with 1 per cent rise in 2007 profitas growth in life sales offset the heavy cost of Britain's…

UK insurer Aviva beat forecasts with 1 per cent rise in 2007 profitas growth in life sales offset the heavy cost of Britain's summer floods.

Britain's largest insurer, which operates as Hibernian in Ireland, also unveiled plans today to drive profit from its asset management business.

Aviva's shares - battered in the recent sell-off across the financial sector - jumped more than 6 per cent in morning trade.

At 9.21am the shares were up 3.3 per cent at 630p. Aviva's 2007 operating profit, on a European embedded value basis, rose to £3.29 billion ($6.52 billion).

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Statutory operating profit, on which the dividend is based and is worse hit by lower investment gains, was £2.23 billion, down 15 per cent but broadly in line with expectations.

Aviva also said it would increase its 2007 dividend by 10 per cent to 33p.