THE boss of Aviva in York says he is proud of the city’s contribution to the global business’s profits.

The company as a whole increased operating profit by five per cent to £1.34 billion in the six months to June 30, and David Barral, chief executive of Aviva Life, said the group had beaten all its targets.

He said the life business, its life and pensions business, which employs nearly 3,000 people at its headquarters in York, was growing “very strongly”, with a five per cent increase in sales from £5.19 billion in the first half of 2010 to £5.47 billion in the last six months.

He said as well as the increase in sales the business had focused more on its most profitable products – group and personal pensions, rather than asset management.

And the growth is to continue, with the business agreeing strong distribution arrangements, including extending its partnership with Santander to provide life, critical illness and protection products to its customers and extending its agreement with Barclays from 2012.

He said it would continue to extend distribution of all its products through banks and other partners to maintain steady growth.

Further growth potential was also on the cards, as regulatory changes will mean employers will have to automatically enrol employees on a pension scheme, with the employee being able to opt out. But Mr Barral said the business would manage steady growth.

He said: “We’re focusing on delivering steady profitable growth. We’re trying to get that balance right where we generate sales and profitable business and can manage it and with the right level of capital.”

He said the York business had generated ideas to boost the group’s profits, exemplified by Louise Colley, head of protection, whose promotion of free life cover for new parents got her recognised by the industry as personality of the year at the life insurance industry’s protection review awards.

Mr Barral said: “We are hugely proud of our people and what they have been delivering. It’s a fantastic performance and what’s been a very difficult market.

“We have not only gained market share but demonstrated leadership in the UK, all coming from York.”