British insurance giant Aviva has reported a dramatic increase in its first-half net profit, with recent cost-cutting measures flowing through to the bottom line.

Aviva reported net profit of £747 million ($1.49 billion), a big reversal of the £84 million ($168 million) the insurer earned in the same period last year. The combined ratio was a marginally profitable 97%.

The company has undertaken a range of cutbacks in recent months after posting an annual net loss of £885 million ($1.77 billion) last year.

They included the $825 million sale of Aviva Australia wealth management, life insurance and investment platform operations to National Australia Bank in June.

Group CEO Andrew Moss last week described the deal as “a good price for us for a business which did not have the scale to compete in a consolidating market driven by local players”.

The sale is due to be complete in the third quarter. Aviva reported net profit of £22 million ($44 million) in the Asia Pacific region, up 57% from the £14 million ($28 million) profit recorded last year.