Panmure Gordon issues warning ahead of the H1 results season
Analysts Panmure Gordon have warned that insurers Aviva, RSA and Partnership face a “watershed moment” after a turbulent six months.
In a release at the beginning of the industry’s results season, the group warned that the strengthening of sterling and the chancellor’s overhaul of the annuities industry in this year’s budget would affect profits.
“The sector has had an interesting H1 2014 with the bombshell dropped by George Osborne in his March Budget probably being the stand-out event,” Panmure said.
The group issued a negative rating for non-life insurance owing to the over-capitalisation and low rates in the sector as factors.