Britain's largest insurance company CGNU has reported a 42% jump in first-half profits.

The increase was driven by a strong performance from life insurance and an improvement in general insurance.

Operating profits before tax rose to �977m pounds from �679m, above analysts expectations.

A fortnight ago, CGNU reported a buoyant life sales with little in the way of margin erosion.

CGNU was created by the merger of CGU and Norwich Union last year and it is one of Europe's top five insurers.

Royal & Sun Alliance

Meanwhile, general insurance group Royal & Sun Alliance reported a first-half operating profit of �375m ($537.3m), up 17% on the year.

The company said the first stage of a review of its UK life insurance business was complete and it expected the entire process to be completed by the year end.

Once the review is finished the life business is finished, analysts expect it to be sold for between �1.8bn to 2.5bn.