Britain’s largest general insurer, Aviva, has beaten analysts’ expectations with a 37% increase in first-half operating profit, but it is still cautious about prospects for the UK savings market.

The group’s June figures were boosted by its general insurance division, whose profit rose by more than half to £613 million due to cost controls and a lack of weather-related claims. Aviva said general insurance price increases were slowing but the underwriting outlook in the personal and small commercial market remained favourable.

Group CEO Richard Harvey says consumers are slowly regaining their appetite for saving, but global economic uncertainty will dampen their enthusiasm.

“The speed of recovery will be linked to investment market conditions and the elimination of regulatory uncertainty, particularly in the UK,” he said.

Operating profit rose to £1.13 billion from £828 million, largely due to the strong performance of the insurance division, the higher value of investments and a small increase in life and pension sales.