Pensions lift Friends Provident

Pensions reform has lifted sales

Friends Provident has seen a 40% rise in third-quarter sales, boosted by reforms to UK pensions provision.

Total new sales of its life insurance and pension products were £1.6bn ($3bn) in the three months to the end of September, up from £1.1bn a year ago.

Its third-quarter UK sales rose 33%, helped by April's changes to pension rules which simplified the regulations governing saving for retirement.

Friends Provident said it now aimed to triple new business profits by 2008.

The company's latest sales figures beat market expectations, and shares in Friends Provident climbed 6.7% by close on Tuesday.