Despite experts’ predictions that London-based insurers are likely to escape heavy claims from sub-prime exposure in the US, fears among investors have led to falls in insurers’ share prices in recent weeks.
Volatility will continue, analysts say, as the fallout from the crisis plays out.
Brit Insurance has been hit hardest, with its share pricing falling by 14% during the past week, and 28% over the past month.
Shares in Amlin have fallen by 2% and 10% respectively over the same period, while other Lloyd’s players including Novae Group (0.8% and 14%) and Catlin (0.7% and 18%) have been experiencing heightened levels of turbulence.
This follows suggestions by analysts that sub-prime claims in the UK could run as high as $3bn (£1.45bn).
But Matthew Rolph, managing director of Marsh’s management liability practice, warned that statements that Lloyd’s insurers have a dispropor-tionate exposure compared to US domestic insurers were “total rubbish”.
He said: “Lloyd’s undoubtedly has exposure. But most of it is sitting with US domestic insurers.”
Meanwhile, following Towergate’s successful takeover approach, shares in Broker Network (BNL) have remained level over the past week at 594p. The offer, which valued BNL at 605p, has left investors with little room for manoeuvre. BNL shares have soared 17% over the past month.
Shares in rival listed network Cobra have not changed over the past week. Over the last month, Cobra’s price has fallen by 4.2% to 91p.