Aviva, Direct Line and RSA have all been affected by the resignations

UK insurer share prices have been sent tumbling by cabinet resignations shaking the government.

Between 8.30am and 10.30am today, Aviva’s share price was down 4%, Direct Line was down 1.9%, and RSA was down 2.9%.

The resignations were in response to a lack of confidence in the Brexit deal brought to the table by the Prime Minister, as they look for an alternative exit for Britain from the EU. The impact on share prices has been felt by UK firms across all markets.

Prices had initially looked to be experiencing a welcome boost early this morning following Teresa May’s announcement outside Downing Street last night that cabinet had accepted a Brexit deal.

But the resignation Brexit secretary Dominic Raab at 9am and Work and Pensions Secretary Esther McVey around an hour later sent prices plummeting. 

The resignations make a hard Brexit where Britain is left outside of the customs union more likely – a big fear for investors. This could hurt the pound and potentially lead to higher interest rates.

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