McMillan claims fall in Aviva's GI results is due to reserves

He said: "The half year results in 2009 versus 2010 show a fall of £13m but underlying that are three things. Current year underwriting performance has improved significantly and we have released a lot less from prior years.

"In first half of 2009 we released around about £100m from our prior year reserves. This year we are releasing around £30m. Lastly, the weather in the first six months of the year has also slightly impacted the results."

On Aviva's corporate commercial arm, Mr McMillan said, from a starting point of £250m, the insurer was on track to grow its large corporate business by 20% in 2010.

Considering the wider market, Mr McMillan said there was "no doubt" that rates had hardened in the motor market and cited reports from the AA and EMB which have indicated high double digit growth.

"In my opinion this is very necessary to balance the rising cost of inflation and bodily injury claims and I think it will percolate through to commercial," he said.

Mr McMillan said he had already seen "modest rate increases of low single digits" in commercial fleet.