British insurer, CGU, has reported a slightly higher-than-expected 5 per cent rise in first-half profits to £420 million sterling (€634 million).

The company, which was formed last year after the merger of General Accident and Commercial Union, said there was strong growth in its life and savings division with new business up 29 per cent to £3.7 billion.

In the Republic, single premium bond sales were £63 million in the first-half, contributing to an overall rise of 28 per cent in new single premium sales. Operating profits in the division rose by 10 per cent to £250 million sterling.

First-half general insurance profits rose by 7 per cent to £287 million after a £69 million improvement in the underwriting result. CGU did not break out figures for its general insurance subsidiary in the Republic.