NORWICH Union owner Aviva yesterday hailed early signs of a recovery in the UK market for its products as it posted an 11 per cent rise in life and pensions new business to £10.8bn.

Aviva said Norwich Union was benefiting from a gradual improvement in investor confidence in equity markets in the UK, with total sales for the nine months to September 30 of £5.5bn, up 11 per cent on the same nine months last time.

It said the insurer continued to consolidate its position, with its share in the UK at the end of June standing at 12.1 per cent.

Norwich Union's sales on an annual premium equivalent basis - the UK industry's standard measure of new regular premiums - grew by eight per cent and life and pensions sales grew by six per cent.

Aviva has also recently opened two offices in China as bids to become a major force in the Asian market.