NORWICH Union shares recovered some ground in London yesterday, closing at 327 1/2p, almost 10p better on the day. Substantial volumes of Norwich Union shares were traded in London, with more than 17 million transactions recorded on the back of increasing demand from institutional investors to buy the stocks.

Meanwhile, the international ratings agency, Moodys, has given Norwich Union an Aa3 financial strength rating on its long term life and pensions funds. The recent flotation of the insurer on the London Stock Exchange, indicated the restructuring of the group, and the transfer of the general insurance business away from the life fund, has had an immediate beneficial effect on its solvency.