Strong growth in profits…
IFRS operating profit up 21% to £1,270 million (HY 2009: £1,049 million) General insurance COR of 97%, beating 98% 'meet or beat' target Interim dividend per share up 6% to 9.5 pence …and powerful capital generation…
£0.9 billion net capital generated in HY 2010 (HY 2009: £0.5 billion) and full year guidance increased from £1.3 billion to £1.5 billion Improved capital efficiency: sales increased and capital invested in new business reduced to £0.5 billion (HY 2009: £0.9 billion) …in the world’s largest life and pensions markets
Long-term savings sales up 4% on HY 2009 to over £20 billion Good profit growth in the UK and Europe driven by a leading position in the world’s largest life and pensions markets, offering the greatest absolute growth over the next five years Major new UK bancassurance partnership with Santander announced this week. In Europe bancassurance sales up by 20% Performance demonstrates building momentum
Continued focus on profitable growth: group IRR on new business increased to 12% (HY 2009: 9.5%) Focus on cost reduction has driven costs down a further 4% Significant progress in the US: IRRs improved to 14% Andrew Moss, group chief executive, commented:
“This was a good half year for Aviva. We achieved a 21% increase in operating profits, grew sales for the third consecutive quarter and improved the group's margin.

“At a time when predictability of cashflows and capital strength are crucial, Aviva's capital generation stands out, and allows us to invest in the profitable growth of the business and increase the dividend.

“Our first half earnings are tangible evidence of the progress we've made in the last few years - but there's more to do. We will continue to focus on customers and on the disciplined allocation of capital to ensure we grow Aviva profitably. While we remain alert to the macroeconomic environment and risks in financial markets, Aviva has excellent franchises in proven growth markets and we are confident about the future.”

Key financial highlights
Key financial highlights
IFRS MCEV
6 months 2010 £m 6 months 2009 £m Change % 6 months 2010 £m 6 months 2009 £m Change %
Long term business IFRS profit 1,128 940 20% 1,918 1,607 19%
General insurance and health 525 545 (4)% 525 545 (4)%
Fund management 56 35 60% 13 (4) 425%
Other operations and regional costs (47) (107) 56% (33) (99) 67%
Corporate centre (54) (46) (17)% (54) (46) (17)%
Group debit and other interest costs (338) (318) (6)% (338) (318) (6)%
Operating profit before tax 1,270 1,049 21% 2,031 1,685 21%
Profit after tax 1,505 747 101% 896 919 (3)%
Net operating capital generated £0.9bn £0.5bn
Interim dividend per share 9.5p 9.0p n/a n/a
General insurance and health 394p 353p n/a n/a
Earnings per share 38.8p 24.9p 28.5p 32.9p
Equity shareholders' funds £11,051m £9,660m £12,921m £11,057m
Return on equity shareholders' funds 14.6% 12.8% 17.5% 16.8%

Long term business
Present value of new business premiums IRR
6 months 2010 £m 6 months 2009 £m 6 months 2010 % 6 months 2009 %
United Kingdom 5,194 4,735 15% 13%
Aviva Europe 7,992 7,071 12% 13%
Delta Lloyd 1,732 1,780 5% 5%
North America 2,334 3,189 14% 7%
Asia Pacific 794 698 10% 7%
Total life and pensions 18,046 17,473 12.0% 9.5%
Investment sales 2,192 1,948
Long term savings sales 20,238 19,421

General insurance and health
Net written premiums Operating profit GI COR
6 months 2010 £m 6 months 2009 £m 6 months 2010 £m 6 months 2009 £m 6 months 2010 % 6 months 2009 %
United Kingdom 2,241 2,298 268 284 98% 99%
Aviva Europe 1,068 1,061 46 108 102% 96%
Delta Lloyd 707 677 81 59 93% 97%
North America 996 899 132 87 96% 97%
Asia Pacific 32 22 (2) 7 n/a n/a
Total general insurance and health 5,044 4,947 525 545 97% 97%