Legal & General saw its new savings business grow by 6% during the last quarter as it shifted its focus to non-commission business.
The firm says concentrating on SIPPs and high quality workplace pensions has helped it increase sales to £206m.
Non profit pension business climbed 10% to £76m, while with-profits savings rose 21% to £52m.
L&G says focussing on high quality business with less reliance on up-front commissions has helped it grow its business in this sector, with 85% of corporate business being advised on a fee basis.
Gross sales of unit trusts and ISAs were up 43% on Q1 last year, reaching £60m.
At its investment management business, L&G reported mixed Q1 results with gross new funds under management from new and existing clients up 22% to £7.5bn from £6.1bn in Q1 2008.
However, sales of its unit-linked bonds dropped 55% on Q1 last year to £18m which L&G attributed to continued volatility, increased appetite for liquidity from consumers and the effects of CGT changes.
"At our preliminary results we said that our focus for 2009 is capital resilience and operational cash generation. At 31 March our estimated Insurance Groups Directive surplus was £1.6bn, modestly ahead of our March 23 estimate," says Tim Breedon, group chief executive.
"We are on track with planned cost reductions and have been increasingly prudent about the terms on which new business is written. These actions to reduce expenses and new business strain will, we expect, support significantly higher net operational cash generation in 2009, particularly in the second half of the year."
L&G announced yesterday it would cut over 500 jobs, with many positions going in its savings business.IFAonline
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