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H1 operating profit 875 mln stg vs forecast 830 mln

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General insurance premiums up 15%

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To launch long-term fund for unlisted equity in H2

(Adds background paragraph 4, CEO comment 6-7, detail 9-12)

By Carolyn Cohn

LONDON, Aug 14 (Reuters) - British insurer Aviva

beat first-half profit expectations following a rise in general

insurance premiums in Britain and Ireland, and said on Wednesday

it remained confident of meeting its 2026 targets.

The life and general insurer, whose main businesses are in

Britain, Canada and Ireland, posted a 14% rise in operating

profit to 875 million pounds ($1.12 billion), above analysts'

average forecast of 830 million pounds.

It saw a 15% rise in general insurance premiums overall,

with an 18% rise in Britain and Ireland.

Aviva set out three-year targets last year, including to

achieve annual operating profit of 2 billion pounds by 2026.

Insurers have faced criticism for raising premiums for motor

and home insurance. They say this is due to inflation and supply

chain issues following the COVID-19 pandemic and the war in

Ukraine, with weather losses adding to pressure on home

insurance prices.

The motor insurance market was "super competitive and it's

highly dynamic", Chief Executive Amanda Blanc told a media call.

"I don't think that the industry can be accused of

profiteering."

However, Aviva's retirement sales fell 6% to 3 billion

pounds due to a drop in equity release mortgages and in sales of

bulk annuities, insurance for corporate pension schemes.

Aviva said it would continue to look at "targeted M&A"

following recent deals such as its purchase of U.S. insurer

AIG's UK life insurance business.

Blanc told the media call that the insurer would launch a

long-term asset fund for unlisted equity in the second half.

Aviva is one of the signatories of Britain's "Mansion House

Compact", in which insurers and pension funds voluntarily commit

to investing 5% of their defined contribution pension schemes in

unlisted companies by 2030.

Aviva shares were down 0.3% at 0732 GMT, compared with a

0.5% rise in the FTSE 100.

The company said it would pay an interim dividend of 11.9

pence per share, up 7% and in line with forecasts.

($1 = 0.7796 pounds)