Aviva has reported a profit after tax of £776m for the first half of this year, turning around a £624m loss for the half year 2012 - but said UK life operating profit fell.
The group's UK life business saw operating profit slump £13m to £438m for the first half of the year, and new business volumes reduced by 16%, though the value of new business was 16% higher, mostly driven by the company's re-pricing of its annuities book.
The value of new business across the group increased by 17% to £401m, though Aviva said there are "areas of underperformance" in all three sections of its business - cash flow generators, future cash flow generators and turnaround businesses.
Aviva Investors was cited as a "turnaround business" which has underperformed from a shareholder perspective and the group said it expects it to play a "more prominent role" going forward.
However operating profit for Aviva Investors bounced £17m compared to the half year 2012 results to £31m, driven by higher revenues and lower costs.
Funds under management have increased by £8.5bn over the first half of the year, though this was driven by market movements and the impact of FX movements and the group said there had been "strong outflows".
Operating expenses are 9% lower and the company said there is potential for additional cost savings in respect of "strategic initiatives" including digital and automation to improve efficiency - however restructuring costs in 2013 were likely to be "significant".
Group chief executive Mark Wilson said: "In the first half we have taken a number of steps to deliver our investment thesis of cash flow and growth. These results show satisfactory progress in Aviva's turnaround.
"Although these results continue the positive trends of the first quarter, tackling our legacy issues will take time.
"I am committed to achieving for investors what we set out to do: turning around the company to unlock the considerable value in Aviva."
