Struggling Asahi Mutual Life Insurance Co. said Thursday the number of new policy contracts in the 2001 business year is estimated to have grown 17 percent due to brisk sales of new products.

However, the outstanding balance of policy contracts is projected to have fallen by around 9 percent from a year earlier, after concerns about the insurer's financial health increased policy cancellations, it said.

Unveiling a progress report on its restructuring programs, Asahi Mutual said it reduced its equity holdings by 800 billion yen, far more than the 500 billion yen originally planned.