The UK's biggest life assurer, Aviva, has said that turbulent stock market conditions and the sluggish economy are likely to hit consumer confidence for the rest of the year.

It made the comments as it unveiled a "solid" rise in sales for the first nine months of the year.

The company also said its financial position remained "strong and resilient" in the face of the depressed equity market.

Investors were cheered by the news and Aviva's shares closed up 30 pence, or 6.6%, at 484.5p.

Aviva, formerly known as CGNU, owns brands including Norwich Union.

'Solid' sales

Worldwide sales of long-term savings products rose to �10.6bn for the first nine months of the year, up from �10.4m for the same period in 2001.

Life and pensions sales rose 7% worldwide on an annual premium equivalent sales - a standard industry measure.

Chief executive Richard Harvey said that the company had achieved "solid sales in generally tough markets".

But he warned that the business climate would remain difficult.

"Our outlook for long-term savings markets for the rest of the year remains cautious as we expect consumer confidence to continue to be affected by economic conditions and turbulent equity markets," Mr Harvey said.

'Strong' finances

The financial strength of some life assurance companies has come under question in recent months, as stock market falls have eroded their capital base.

There had been speculation that Aviva may have to launch a rights issue to bolster its finances, but the company said its finances were healthy.

"Our capital position remains strong and resilient to turbulent market conditions," said Philip Scott, executive director of Aviva's UK life division.