Aviva , the U.K.’s second biggest insurance canvasser by market value, swung to a first-half profit as margins on the sale of life insurance policies rised.

Net income was 675 million pounds ($1.1 billion), which was compared with lat year’s loss of 97 million pounds, the London-based company said today in a statement. Operating profit, measured on a market compatible  embedded value basis, rose to 1.69 billion pounds, beating the 1.23 billion pound median estimate of five analysts surveyed by Bloomberg.

“Life and pensions margins have improved, the general insurance business has beaten our targets,” Chief Executive Officer Andrew Moss said in the statement. “The economic environment continues to be uncertain, and sales volumes will continue to be subdued.”

Profit margins on U.K. life insurance sales increased  to 2.1 /cent in the first half from 1.2 /cent last year. Aviva rose 5.4 /cent to 375.7 pence in London, valuing the company at 10.3 billion pounds.

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