After enduring the recession by cutting costs and trimming about 11,000 roles from its workforce, Insurance giant Aviva has surpassed profit expectations in the year 2009. These can be viewed as the initial signs of an improving market as the customers are planning to save again.

Towards the end of the year 2009, the operating costs on an IFRS basis fell 12% to £2.02bn from £2.30bn in 2008. But it mounted 3% to £3.48bn on a market consistent embedded value basis.

Figures show that there was a tough market in 2009 and Aviva will keep a good control on costs in the UK for times to come as well. The operating profits fell to the extent of 11% for the life business and 18% for general health and insurance during 2009.

After Prudential revealed an enormous £23.5 billion takeover to seize more of the Asian market, Aviva firmly believes in its European life and pensions market for development.

Andrew Moss, Group Chief Executive said, "We consider that Europe as a whole represents the largest and most attractive life and pensions market in the world".

The European market may surpass the Asian and North American market in the next five years.

In order to simplify its structure, the group stepped up its "One Aviva" policy. Consequently the Norwich Union name disappeared last summer and the group was renamed Aviva by spending multi-million Pounds on the advertising campaign which featured stars including Bruce Willis and Ringo Starr.