The latest ups and downs on the stock market
Forget all the doom merchants that predict the fall of the motor insurance market because, where it really matters, things are looking up.
The City was encouraged by news from the AA that average private motor premiums rose 9% in the fourth quarter of last year. Admiral’s shares climbed 25p to 1145p before slipping back to 1135p. RSA climbed from 128p to 131p, but then fell back to 129p.
The outlook from Moody’s was brighter. Analyst David Masters wrote: “Over time, these rate increases will more than offset the other pressures affecting UK insurers. The profitability of UK personal lines insurance will likely gradually improve over the near-to-medium term.
“With UK property and casualty (P&C) insurers less able to call on prior-year reserve releases and continued suppressed levels of investment income, meaningful rates increases are much needed in the UK P&C market to maintain or improve profitability.”
Market indices AIM movers price 7-day Currency
FTSE 100 5238.51 Admiral 1135 1.3% Dollar 1.59
FTSE 250 9283.95 Brit 189 4.7% Euro 1.14
FTSE All-share 2683.34 Jelf 34 -9.3% Yen 144.5