Insurance stocks were heavily sold yesterday as concern grew over the effect of market falls on the sector's health.

Insurance stocks were heavily sold yesterday as concern grew over the effect of market falls on the sector's health.

A warning from Standard & Poor's (S&P) said that UK insurers are at their weakest for several years and expressed doubts over its ability to weather the storm.

The rating agency said that 65% of life insurers had been given a negative outlook, with 12 downgrades this year. Poor results from insurance groups also increased market concerns. Royal & SunAlliance fell to 103p down to continued confusion over its capital raising plans.

Aviva was another loser, down to 454½p and Friends Provident fell 11p to 122½p. Prudential fell 24½p to 434p.

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