Investors showed some faith in the UK insurance industry this afternoon as shares began to shake off the worst of the doomladen forecasts which followed yesterday's atrocities in the US.
Despite the tragedies precipitating alarming falls in share values this morning which added to yesterday's losses, the latest signs are that calm could be about to return to the markets.
CGNU and Prudential led the way and began to recoup some of their losses, rising 0.5% and 1.7% respectively. But in such a highly volatile market, there were few voices keen to read too much into the figures.
Both performances are likely to be a result of the companies' lack of direct exposure to some of the areas most likely to generate the first major claims.
CGNU withdrew in June from what the Americans term commercial property and casualty and the Pru was keen to get the message across, too, saying “We have no commercial property exposure in the US, and no general insurance, either.”
But there was a reluctance to commit to a more bullish interpretation of the company's stock value.
Echoing the caution being felt everywhere today, a spokesperson reflected simply: “The share price is good but it's a very volatile market.”
With many analysts forecasting that reinsurers would feel the worst effects as they pick up enormous claims from insurers, Munich Re's share price took a hammering this morning. Having already crashed 15% yesterday, they contin
