Friends Provident's sales of life and pensions products fell 40% over the past year, though the firm insists it is on course with its strategic aims.
Business volumes fell across all areas, with individual pensions and investments hit particularly badly by the economic climate.
Total life and pensions business in the first quarter of 2009 was worth £147.9m, compared with £247.1m. Business was even more depressed compared with the final quarter of 2008, fall 51% from £304.6m.
Corporate pensions sales fell 45% to £69.6m, while corporate protection fared better, down just 12% to £2.2m.
Individual pensions business fell dramatically, down 72% to £3.5m, while investment business fell 88% to just £0.5m.
Annuities fared better, down 11% from £6.4m to £5.7m and individual protection business dropped 27% to £9.1m.
Friends Provident says it hopes to increase its individual protection business through new distribution deals with Sesame and a possible deal with supermarket chain Tesco.
Chief executive Trevor Matthews says: ""In the current economic environment, trading continues to be tough."
"Our capital position is strong, despite further adverse movements in credit markets this year, and our reserves for corporate bond defaults are the most prudent among our peer group. We are focused on improving the cash characteristics of our business, with further good progress on our cost reduction programme."
Matthews says the firm's new distribution agreements and capital position will stand it in good stead for the future.
Elsewhere, the insurer announced an "agreement in principle" to provide protection products in conjunction with Tesco Personal Finance. Friends Provident says it hopes to finalise a deal by the end of 2009.
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