RECORD profits have been recorded for York-based Aviva Life in the insurance giant's latest six-months' figures.

Operating profits for the life insurance business shot up 26 per cent over the same period last year, allowing Aviva to rake in £463 million.

It follows the third consecutive quarter of life sales growth with profit margins doubling to 3.4 per cent over the last 18 months.

All this is seen as evidence that efficiencies which resulted in the cutting of posts, investment in e-commerce technology and the bringing together of the life and general services divisions in the UK, are paying off.

And it prompted Toby Strauss, chief executive of Aviva Life, to praise his 2,750 staff in York.

"They can be proud of their performance and my thanks for all the effort they have put in. It was hard work and I am looking forward to doing more of the same.

"We have a lot of momentum. We have passed the legacy of integration of the business and we should be collectively proud."

He said that the profits were achieved by focusing on "the right mix of products" which helped Aviva to double its annuity business, with individual annuities up by 60 per cent; and by managing costs on the capital.

With such growth could recruitment start again? Mr Strauss said that would depend on how the general economy shaped up along with the level of demand for Aviva's products and services.

"We want to grow our market share and it depends how we fare competitively. As customers, we all expect more for less and it means that over time we have to continue to use e-commerce to reduce our cost base in order to be competitive.

"We have to create a business that is sustainable in order to continue to employ people."

But he said that there were no plans for more job losses or for recruitment. Much depended on the general economy, the needs of the market and the way Aviva responded.

The Life results come against a background of strong growth figures for Aviva as an international company, posting profits up 21 per cent to £1.27 billion and total sales in its savings business up 4 per cent to more than £20 billion.