UBS has created a new insurance and pensions industry group and hired a team of four from UK insurer Paternoster to the unit, in one of the clearest signs yet that investment banks are returning to a business many pulled back from during the crisis.

The new group, which sits within the investment bank's fixed-income, currencies and commodities division in London, provides coverage of insurers and pension funds across Europe, the Middle East and African region, according to a statement from UBS.