THE boss of Norwich Union Life has praised the company's 3,000 employees in York - and spoken of his confidence in their future.

Chief executive Gary Withers was speaking after parent company Aviva last week announced better-than-expected half-year results for the first six months of 2003.

Operating profits were £828 million, down from £955 million in the same period in 2002, but City analysts had feared much bigger falls, and shares rose sharply to 511p.

Mr Withers said most of the falls were for "technical factors", and they were a good set of results. He said his staff had been through quite difficult conditions in the last 12 months, but had responded with the dedication, hard work and professionalism he would have expected. There were now signs of a return of consumer confidence and some stability, which would help the business in coming months. He said: "People are reassured that the market will not fall suddenly."

Aviva said in announcing the results that they had been boosted by cost savings, partly achieved through the shedding of 700 jobs - very few of which were lost in York. It also said that improving efficiency remained a management priority, and it expected cost savings to be £175 million in 2004.

Asked if this might mean significant job losses were on the way in York, where staff work at offices in the city centre, Clifton Moor and Monks Cross, Mr Withers said: "York is the HQ and our base, and I would not anticipate any major changes in York."

He said there was always staff turnover, and it was possible numbers would go down slightly, but, while unexpected regulatory or market changes could happen, he did not anticipate any major redundancies in the city.

Updated: 10:32 Tuesday, August 05, 2003