The spurt in business was put down to strong interest in sales of Peps before the tax-free savings scheme was abolished in favour of ISAs in early April.

Interest in pension plans and from institutional investors was also verystrong, said the two companies.

RSA, which is axing nearly 300 jobs at its Brighton and Horsham operations, said it saw an 18 per cent increase in the sale of life, pension and retail investments to £53.6 million compared with £45.6 million in the same period last year.

Single premium sales increased by 24 per cent, from £203.3 million to £252.4 million, while regular premiums increased by 12 per cent, from £25.3 million to £28.4 million.

Stephan Pater, managing director of RSA's life and unit trust operations, said: "We are very pleased with the healthy rises in ournew business for the first quarter.

"Sales of retail investments continued to surge ahead in the buoyant market."

CGU said its Pep and unit trust sales in the UK were up 122 per cent to £288 million. Worldwide new business increased by 29 per cent to £1.82 billion.

Bob Scott, CGU group chief executive, said: "Our UK business continued to perform well, boosted by excellent sales of Peps and investment bonds and strong growth was also achieved in The Netherlands, Italy and Poland."

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