* UK division boosts profit, Canada profit falls
* Total dividend rises above-forecast 18 pct
* To spend 600 mln stg on "bolt-on" buys (Adds detail, CEO comment)
By Carolyn Cohn
LONDON, March 8 (Reuters) - British insurer Aviva AV.L said on Thursday it would give 500 million pounds back toshareholders as it posted a 2 percent rise in 2017 operatingprofit to 3.1 billion pounds ($4.31 billion), helped by strongperformance in its UK division.
European insurers such as Allianz ALVG.DE and Munich Re MUVGn.DE have been offering share buybacks as they struggle tofind other ways to deploy capital.
Aviva, which provides general and life insurance, also saidin a statement it planned to spend around 600 million pounds on"bolt-on" acquisitions, and 900 million pounds on debtreduction.
"We continue to invest in our businesses and in particularon priorities such as digital," Chief Executive Mark Wilsonsaid.
Operating profit was slightly above a forecast 3 billionpounds, according to a company-supplied consensus poll.
Most divisions showed strong operating profit growth, Avivasaid, but profits in Canada shrank, hurt by a rise in bodilyinjury claims and large commercial insurance and weather-relatedlosses.
Assets under management at Aviva Investors, the insurer'sfund arm, rose 9 percent to 490 billion pounds.
Aviva said it would pay a total dividend of 27.4 pence, up18 percent and above a forecast 26.4 pence.
($1 = 0.8054 euros)($1 = 0.7200 pounds)