Friends Provident's total sales rose were up 35% year to date helped by the international business, but UK inflows were flat.
Combined group sales at the end of September, excluding the acquired AXA UK Life business which contributed £26m, totalled £683m, a 35% increase on the same period in 2009.
This growth has been driven by the International and Lombard businesses, up 31% and 184% respectively, whilst the UK business remained static.
However, the group says the UK protection market remains highly competitive and is closely linked to a weak housing market.
"Consequently consolidated sales volumes, at £32m, remain depressed with standalone Friends Provident sales down to £27m from £31m in the prior period excluding the acquired AXA UK Life business which contributed £5m."
Trevor Matthews, chief executive officer of Friends Provident UK, said recent acquisitions underlined the company's "clear commitment" to UK markets, although he admitted sales continue to reflect previous uncertainty over Friends Provident's UK position.
He added: " Moving forward we will seek to capitalise on appropriate consolidation opportunities presented by Resolution's UK Life Project with our core market positions already enhanced by the recent acquisition of the AXA UK Life business and added to by the proposed acquisition of BUPA Health Assurance.
"This will enable us to continue to provide market leading products and service to distributors and our 5 million UK customers. Our international businesses continue to perform very well benefitting from the sustained improvement and return of confidence to overseas markets especially in Asia and Europe."
On 15 October 2010, Resolution announced the proposal to buy Bupa Health Assurance Limited for around £102m. The deal will be funded from surplus capital held within the Friends Provident's life operating businesses and is expected to complete early in 2011.
Sesame Bankhall Group, Friends Provident's adviser support business, has continued to trade profitably and has now integrated with the Bankhall and PMS businesses.
The report says: "Whilst the market environment remains depressed the business continues to be a key network and service provider for financial advisers and mortgage brokers and is positive about the opportunities to develop as the regulatory environment evolves."
