Insurer Aviva reported a 4 per cent increase in first- half profit that topped analysts’ estimates.

Operating profit in the six months through June climbed to £1.05 billion, according to a statement today.

That compared with the £1.03 billion average prediction of 16 analysts provided by the company.

The insurer also increased its interim dividend 4.5 per cent to 5.85 pence.

"The half-year results show the momentum in Aviva's turnaround continues," chief executive officer Mark Wilson said in the statement.

“Aviva remains a work in progress and these results are a step in the right direction.”

Mr Wilson last month pledged to continue to cut costs and attract funds to the company’s investment unit to boost profitability and further shrink an internal loan.

Last year, he hired Euan Munro from Standard Life Investments to run Aviva Investors, which in July revealed a new multi-asset strategy to attract third-party assets.

Operating profit at the company’s investment unit climbed 14 per cent to £48 million, the statement showed.

The insurer said it reduced its internal loan to £3.6 billion at the end of July from £4.1 billion in February.

Bloomberg