Aviva dividend up 6% on profits jump

Aviva recorded a 21% jump in operating profit in the first half of the year, with the insurer declaring 6% dividend increase.

In the six-month period to 30 June, Aviva's IFRS operating profit rose 21% to £1.27bn, up from £1.04bn for the same time last year.

UK life and pensions new business rose to £5.19bn, up 10% from £4.73bn in H1 09.

Aviva says its strong performance and capital generation, which is on track to deliver £1.5bn net capital in 2010, allowed it to increase its interim dividend up 6% to 9.5p.

The company say overall positive performance was lifted by its bancassurance business.

This morning RBS announced it has entered into a new distribution agreement with Aviva, replacing their current joint venture. It provides protection, pension and investment products through RBS's distribution network, with the parties sharing profits.

Aviva also announced a major new UK partnership with Santander this week.

Aviva's share price soared on news of its results, up 2.2%, or 8.1p to 376p per share just after opening.