Aviva beats profit expectations as Direct Line and wealth management drive growth (updated)
UPDATE 2-Aviva beats profit expectations as Direct Line and wealth management drive growth Adds detail and background throughout
Aug 14 (Reuters) - British insurer Aviva AV.L beat first-half profit expectations on Friday as its combination with motor insurer Direct Line and a booming wealth-management business drove earnings higher.
Chief Executive Amanda Blanc has bet on scale in a competitive home market, with the Direct Line deal cementing Aviva as Britain's largest multiline insurer as it navigates political uncertainty and softening insurance pricing.
Aviva, which offers car, home and life insurance, posted operating profit of £1.33 billion for the six months to June 30, up 24% from a year earlier and ahead of the £1.26 billion expected by analysts in a poll by the company.
The insurer also said it was well placed to meet three-year financial targets, which include 11% compound annual growth in operating earnings per share through 2028 and a return on equity above 20%.
General insurance gross written premiums climbed 29% to £8.1 billion in the first half, against a consensus forecast of £7.8 billion.
Net inflows in the wealth-management business, meanwhile, rose 32% to £7.6 billion.
Aviva raised its interim dividend by 7% to 14 pence per share.
($1 = 0.7409 pounds)
(Reporting by Yamini Kalia in Bengaluru
Editing by Mrigank Dhaniwala and David Goodman)