Pensions and insurance provider Friends Provident said sales fell 11 per cent over 2008 amid turmoil in the financial markets.
New business fell to £1 billion over the year, from £1.1 billion in 2007, the insurer said in a trading update to the stock market.
However, Friends Provident said its capital position remained strong, while costs savings are well on track for £40 million by the end of 2009.
Trevor Matthews, chief executive of Friends Provident, said the operating environment in the UK and overseas "remains tough" but was upbeat about the group's prospects.
Mr Matthews added: "Friends Provident is in good shape despite the turmoil in financial markets and the uncertain economic environment.
"We have made excellent progress cutting costs, excess capital remains healthy, and our dividend policy remains unchanged."
Although overall sales were down, overseas business rose 19 per cent for the year to £456 million.
The company plans to release full results for the year in March.
Shares in Friends Provident rose 5.04 per cent on the FTSE 100 index in early trading.
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