EUROPE - The Aviva group's European fund management business reported operating profits of £29m (€43m) for the first half of 2007, slightly down from the £30m reported for the same period last year.

Aviva's Dutch fund management arm Delta Lloyd, which took over Cyrte Investments in June, posted first-half operating profits of £11m, down from the year-earlier's £13m.

Business in Poland was strong, with mutual fund sales more than doubling to £141m from £62m.

Asset management unit Morley Fund Management reported strong growth in its operating profit to £41m from £31m, a 32% increase. The growth was "primarily a result of strengthening global equity markets" as well as new mandates, Aviva stated in its interim report.

Under new chief executive Alain Dromer, Morley will continue to focus on pan-European equities, fixed income and property.

For its life and pension business Aviva noted it had just signed a memorandum of understanding for a merger with AK Emeklilik, the life and pension arm of Turkey's Akbank.

Total assets under management for the Aviva group stood at £377bn at end-June 2007.

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