Bright Grey and Scottish Provident have bucked an 18 month downward trend as new business revenue and applications jumped significantly over the third quarter of the year.
New business at the Royal London owned protection providers grew 21% to £98m in the three months to September, compared with £81m last year, under Present Value of New Business Premiums (PVNBP) reporting.
However, the 2010 figures for the pair have been restated to reflect current, market consistent reporting, a spokesperson said.
The results are a turnaround on the first six months of the year which saw a combined drop in sales of 17% to £141m compared to £170m in 2010.
They also reported a combined 16% increase in applications during the period.
The results are the first to fully take account of the internal restructuring undertaken during the spring which saw an amalgamation of sales teams and back office staff.
This measure has been credited in large part for the success of the turnaround.
Ross Ainslie, managing director at Bright Grey and Scottish Provident, said: "Anyone looking at the protection market will notice that the economic slowdown and the issues in the mortgage market have altered the landscape significantly over a relatively short period of time.
"Throughout this period our business has been constantly evolving to ensure we deliver two strong brands that advisers want to do business with.
"The strategic initiatives we've undertaken, including enhancements to products across both Bright Grey and Scottish Provident, the bedding in of a single sales force and a high profile summer of marketing have come together to boost the number of applications we received and deliver a significant increase in new business.
"We're very pleased to see such positive figures as a result of changes within the business," he added.
Ainslie also hinted the providers would follow other players in the market with a consumer facing advertising strategy by saying continued future growth included the promotion of protection insurance with consumers.
Overall, total new life and pensions business at Royal London, on a PVNBP basis, for the nine months to September rose to £2,595m, up from £2,318m for the same period in 2010.