Aviva is a brand new winner as consumers recognise the name

CONSUMERS recognise the new Aviva brand more than the historic Norwich Union label less than a year after the insurance giant made the controversial switch.

The Norwich Union brand, which had been operating in the UK for over 200 years, was dropped in June 2009 in favour of the new name amid claims that it would not take off.

But David McMillan, chief executive of Aviva's general insurance business, said: "The branding has been a real success story for us in the past couple of years.

"Towards the end of the first quarter of last year, customer awareness for the Aviva brand passed what Norwich Union had at its peak."

The firm tracks "spontaneous consumer awareness" on a monthly basis.

Yesterday the insurance giant reported a forecast-beating 26 per cent increase in 2010 profit, helped by cost cuts and stronger sales of high-margin life policies.

The UK's second-biggest insurance firm said it made a 2010 operating profit of 2.55 billion, up from 2bn the previous year despite the "tough economic environment".

Pre-tax profits rose 35 per cent to 2.44bn, against 1.81bn the year before. The firm said it had taken a number of "tough decisions" in closing down loss making business in the last two years.

It will also close its defined benefit pension scheme to new users by April, which the firm says will save it 50m a year.

Sales of life and pensions products rose 16 per cent to 10.3bn and there was a 19 per cent increase on total long-term savings to 11.8bn.

The firm signed an exclusive deal with Santander to sell bancassurance products and extended its distribution arrangements with Royal Bank of Scotland.

About 25 per cent of the group's staff - about 3,000 - are employed in Scotland, a legacy of the General Accident company which merged with Commercial Union to form CGU in 1998.