Aviva has reported a 27% increase in first half profit, buoyed by robust sales growth in its domestic market.

The insurer said operating profit for the six months to June 30 came in at £1.69bn on a European Embedded Value basis, up from £1.31bn in the same period last year.

The company said the profits improvement was driven largely by the UK, where first-half sales surged 43% to £6.89bn, outpacing continental Europe, where they rose 10% to £7.27bn.

The company said it also benefited from a strong performance at its general insurance and health division, where profit rose 23% at £866m.

The unit had a combined operating ratio of 92%, beating its 98% target.

Chief executive Richard Harvey said Aviva, under pressure to demonstrate strong prospects as a standalone company since making an unsuccessful bid for rival Prudential in March, is "poised to deliver further profitable growth both by business and geography".

Last month, Aviva bought US life group AmerUs for £1.6bn, expanding its previously marginal presence in America to counterbalance its large and growing position in the UK and mainland Europe.

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