UPDATE 2-Old Mutual sales beat views, sees volatile markets

* Q3 life sales 326 mln stg vs. 319 analyst consensus

* Unit trust sales jump 53 percent to 1.7 bln

* Says markets set to remain volatile

* Shares down 1.8 percent (Adds details, analyst reaction, share price)

By Myles Neligan

LONDON, Nov 5 (Reuters) - Anglo-South African insurer Old Mutual Plc (OML.L) reported better-than-expected third-quarter sales, helped by the financial market rebound, but said customers remain cautious amid persistently volatile conditions.

London-listed Old Mutual's life sales for the three months to Sept. 30 fell 4 percent on the year to 326 million pounds ($537 million), while unit trust sales jumped 53 percent to 1.7 billion, the company said in a statement on Thursday.

Analysts had expected life sales of 319 million pounds and unit trust sales of 1.49 billion, according to a consensus estimate compiled by the company.

"This is a respectable performance given the state of the global economy," said Oriel Securities analyst Barnard Marcus.