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Perth gains from insurance deal

Aviva and HSBC forge major partnership

AvivaInsurance group Aviva has agreed a ten-year distribution deal with HSBC in one of the biggest agreements in the sector.

The partnership, to be run from Aviva’s offices in Perth, will see it provide a range of general insurance products for the bank. Aviva said it offers significant growth opportunities in the bancassurance market.

The new deal builds on a five-year agreement with HSBC to provide home and travel insurance.

Andy Briggs, CEO Aviva UK Insurance said: “This agreement – one of the largest ever in UK insurance – underlines Aviva’s offering and growth potential in the UK.”

The business will be supported from the Perth partnership centre of excellence.

The news emerged as Aviva raised its first half dividend by 13% following a big jump in profits from its general insurance business.

Operating profit rose 11% to £1.46 billion, which was in line with consensus expectations.

Earnings from general insurance jumped by a quarter, to £417m, thanks partly to the inclusion of a Canadian business bought last year.

In life insurance, profits rose 8% to £1.3bn thanks to strong performances in the UK, France and Poland.

Chief executive Mark Wilson said: “Aviva is delivering. For the fourth year in a row we have grown operating profit, up 11%, reflecting positive performances across

“Aviva’s businesses world-wide. As a result, we are increasing the interim dividend per share by 13% to 8.4p. The benefits of our geographic and product diversity are clear and Aviva has numerous sources of growth.

“In the first half of 2017 we increased sales right across the group and delivered strong growth in operating profit in the UK, Europe and Aviva Investors.

“We are growing and investing in the UK. We have grown top line sales and bottom line profit in UK general insurance, pensions, annuities and protection. Our digital business continues to make progress, making insurance simpler and more convenient for customers.

“We are getting the basics right. Serving customers well, keeping a tight control on costs and investing in our businesses.”

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