SALISBURY-based life insurer and principal sponsor to the Saints' Friends Provident reported a 13 per cent hike in total new business today despite investors remaining wary about volatile market conditions.

Friends Provident, which demutualised and floated just over a year ago, said total new life and pensions business premiums came in at £1.27 billion for the first nine months of 2002. That was a 13 per cent improvement on the previous year while on an annual premium equivalent basis, sales rose 11 per cent to £274m.

It is standard industry measure for new business which includes all regular premiums and ten per cent of single or one-off premiums.

Chief executive Keith Satchell said: "The 13 per cent increase in total new business premiums for the first nine months of 2002 is a strong performance against the backdrop of considerable market volatility and fragile investor confidence."

On an annual premium equivalent basis, new life business increased 30.8 per cent to £98.1m over the nine month period while new pensions business was up 2.7 per cent at £175.5m.

The group is shifting its focus away from individual pensions in favour of group pensions.