With Angelique Ruzicka, finance editor
It has been a dismal week. News of yet another bail-out has sent the market into frenzy. As Insurance Times went to press, the government unveiled measures to encourage banks to lend to individuals and businesses. The £50bn plan, which allows the Bank of England to buy assets directly from firms, is meant to provide insurance against banks’ “toxic” debt.
The big four high-street banks suffered the most. Shares in Royal Bank of Scotland (RBS) plummeted by 64.36% to 19.60p over the week.
The slump followed the bank’s announcement that it expects to record losses of £7bn to £8bn for 2008. RBS has warned of further write-downs of £15bn to £20bn. Barclays and Lloyds TSB also suffered as shares dropped 45.99% and 41.72% respectively. HSBC’s price fell 19.10% to 516.75p.
Weaker bank shares have affected other financial services companies on the London Stock Exchange. Many listed insurers reported large drops in share price – the exceptions were Amlin, Hardy and Culver, which managed small rises. The hardest hit insurer was Aviva, with a 20.38% fall.
AIM-listed insurers and brokers had a less tumultuous week, although shares in Advent Capital dropped 11.11% to 120p.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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