Friends Provident's first published results as a listed firm appear to have confirmed a sharp slump in earnings during the first six months of the year.

The life insurer's first half figures for 2000 were not available for comparison.

But its first half operating profit of �92m ($135m) compares poorly with full year earnings of �214m in 2000.

Sales of new life insurance policies plunged 40% to �45.8m.

And sales of profitable savings and investment products also fell, a slide the firm blamed partly on customer fears surrounding its move from being a mutually owned insurer to one listed on the London Stock Exchange.

Friends Provident's full-year results are expected to be disappointing when compared with those of larger competitors Prudential and Legal & General, insurance analysts said.

Friends 'predictable'

Friends Provident's disappointing result had been expected in the City after the insurer warned after it floated that earnings would miss earlier forecasts.

And, with the firm forecasting improved trade in the second half of the year, the firm's shares initially rose more than 4%.

"[Growth will be] supported by growing volumes of pensions business and the launch of new single premium investment products," said chief executive Keith Satchell.

But the stock later fell victim to the sell-off which followed the attacks on US landmarks including the World Trade Center and Pentagon, closing 19.5p down at 198.5p.

At its peak in August, the stock was trading at 258p.