It has been a lively old time for Britain's insurance industry in the past few months. Prudential was forced to scrap its blockbuster deal to buy the AIA Asian business in June. Clive Cowdery's Resolution buyout vehicle then followed last year's acquisition of Friends Provident with a £2.75bn (€3.35bn) deal for Axa's UK life business.

Aviva and RSA got into a slanging match after the former turned down its rival's £5bn offer for its non-life businesses. And last week Legal & General's shares jumped on speculation about a bid from the Swiss giant Zurich.

This wave of activity reflects three things. First, Prudential's debacle notwithstanding, deals are doable again as the financial crisis recedes and confidence returns to markets. Second, valuations remain relatively cheap, having been battered in the meltdown. And third, companies are jockeying for position in a market in which size and scale play a huge part.

Andrew Moss promised "One Aviva Twice the Value" when he took over as chief executive in 2007, but the share price has roughly halved in that time. Investors have doubted the wisdom of Moss's "composite model" – keeping life and general insurance under one roof – and the growth potential of his UK and European-focused business. But first-half profit beat expectations as Moss's cost cuts bore fruit and new business sales surprised on the upside.