There is no doubt CGNU is way ahead of the market

Charles Landa SG Securities

But the falling stock markets meant that investment product sales were sharply lower, with sales down 47% compared to the same period a year ago.

New life and pensions sales offset these declines, and were up by 23% to �3.3bn

"Despite volatile equity markets, which created difficult conditions for retail investment sales, our increased distribution capability produced record new business sales," said Richard Harvey, the group's chief executive.

European growth

The company is also building a strong pan-European presence, with sales in France reaping an extra �564m.

There is probably a flight to quality benefiting from the troubles of Equitable Life

Charles Landa

It is building top 10 positions in the Spanish and Italian markets through distribution agreements with national distributors.

And the firm may have been helped by the scandal surrounding its competitor Equitable Life.

"There is probably a flight to quality benefiting from the troubles of Equitable Life," said Charles Landa at SG Securities.

Last year, storms in the UK and France cost CGNU �285m ($412m).