Aegon UK, the Edinburgh-based insurer, has posted a flat performance in new life and pensions business for the first quarter, but says its better product mix has helped shield it from stock market volatility.

Chief executive Otto Thoresen, meanwhile, has said he is now "looking further ahead" in growing the business. Thoresen, who has enjoyed a high-profile role leading the government's financial capability project, has been linked with a possible vacancy at Standard Life on the eventual retirement of chief executive Sandy Crombie.

Asked about his future at Aegon, he would only say yesterday: "I am focused on taking this business on to the next stage."

Thoresen has headed a fast-growing UK-only business at Aegon since 2004. Amid an apparent scarcity of top UK insurance executives, Standard has recently admitted that its thoughts are turning to a successor for Crombie, 59, who is currently running Standard's UK business, as well as the group, following the departure in January of Trevor Matthews. The Australian who was a key driver of Standard's growth will take over at its rival Friends Provident in a few weeks.

Aegon, which like Standard has pinned its growth hopes on diversification, said yesterday that its move into annuities and protection had provided "resilient" new business flows.

Individual annuities new business rose by 13% to £342m, and two years after entering the market Aegon says it is "now established as a key player". It said individual protection had also risen strongly, up 17% - though it is still tiny at £13m. Aegon has signed key distribution partnerships with Barclays and HSBC, which it sees as a platform for growth.

Life and pensions new business matched a strong first quarter last year at £288m, with a 22% rise in corporate pensions but individual pensions were down 5%, offshore bonds fell 13% and drawdown products off 39%.

This month Aegon is launching an innovative drawdown product "Income for Life" following the success of its "Five for Life" annuity, both featuring exposure to equities but with an income guarantee.

Thoresen said: "The underlying demographic trends are still very strong. We think we are in the right segments here and our strategy leaves us well-placed."

Aegon's key metrics showed the "value of new business" up only 3% after a long upward trend, and a 23% fall to £34.3m in operating earnings, where stock market levels were said to be a key driver. Aegon Asset Management's retail and institutional businesses have both experienced "a slower start to the year than 2007".