Shares in Friends Provident jumped 61/2p yesterday after the life company reported a strong pick-up in its sales in the first quarter of this year.
In the UK, sales were 20 per cent ahead at £88 million. The biggest gain was in group pensions, 29 per cent higher at £45 million.
Friends acknowledged that this strong performance reflected a low starting base in the same quarter last year, but said it still expects to grow its market share over the full year.
Sales of protection policies such as term assurance were nearly 20 per cent higher in a contracting and increasingly competitive market.
Overseas, Friends Provident International achieved a 23 per cent gain with £22 million and Lombard International in Luxembourg, acquired for £183 million earlier this year, contributed £19 million.
"If we exclude Lombard, we achieved a 20 per cent increase in sales reflecting a strong positive trend," said Ben Gunn, chief executive of Friends Provident Life and Pensions.
Lombard had boosted international sales by 132 per cent, so that they now accounted for about a third of all new business, he added.
"We have also achieved healthy growth in the UK, specially in group pensions, where strong volumes from independent financial advisers have more than offset subdued production from the employee benefit consultants sector. Progress in investment business is good, while protection remains encouragingly resilient against an increasingly competitive sector."
Friends has been trying to create a more balanced business by merging its asset management wing with F&C, closing its direct sales force and reorganising its network of appointed representatives.
Since listing on the stock market in 2001, Friends has seen its funds under management grow four-fold to more than £120 billion.
In the UK, Friends continues to focus on investment funds designed for the more risk-averse customer as an alternative to with-profit products.
Meanwhile, it was announced yesterday that about 70,000 Norwich Union investors are set to receive an average of £90 each as a result of an error relating to investment fund charges.
The company, which is part of insurance group Aviva, said it had failed to correctly disclose charges on some of its unit-linked funds.
The problem, which came to light during a review carried out last October, relates to the so-called total expense ratios (TERs) which cover administration, service, audit and regulatory fees.
Norwich Union said the annual management charges, which make up the majority of charges on the funds, had been correctly disclosed, but the TERs had not.
