British insurer Aviva has posted a 29 per cent increase in operating profit for 2005.
The results have exceeded expectations for the group, with operating profit reaching £2.9 billion, more than the £2.65 billion forecast by analysts.
Its combined operating ratio - a measure of the amount of money spent paying out on claims and in costs - tightened to 96 per cent from 97 per cent a year earlier.
Profit in Aviva's general insurance and health division jumped 22 per cent to £1.56 billion, while profit from new life and investment sales in continental Europe surged 22 per cent to £494 million.
The group benefited from improved trading conditions and the acquisition of motoring group RAC, which cost Aviva £1 billion. Integration of RAC is now complete, with the business on track for profits of £250 million a year, including from the addition of 1.4 million RAC customers by 2008.