Sector movers: Blue chips Admiral and RSA drag insurers lower

7th Nov 2014 13:27

The non-life insurance sector was the worst performer on Friday in London after a disappointing update from Admiral and a broker downgrade for RSA Insurance.Admiral was trading 3.1% lower after saying that its price-comparison website Confused.com is expected to see a fall in profits in the second half, compared with the first, due to the "highly competitive" market in the third quarter.The group also reiterated that future earnings would take a hit from the decline in premiums across the market in recent years, coupled with a return to higher claims inflation.Customer numbers increased by 10% to 4.03m in the third quarter, but turnover was down 3% at £513m.RSA was also down 3.6% after Canaccord Genuity downgraded its rating on the insurer from 'hold' to 'sell'.The broker said that the firm's third-quarter update on Thursday highlighted the "myriad [of] headwinds" it faces as it restructures in difficult markets.Others in the sector includes Jardine Lloyd Thompson, Esure, Direct Line, Catlin, Hiscox, Amlin and Beazley were also trading in the red.Beazley had said on Thursday that gross premiums written over the first nine months of 2014 were flat on last year at $1.55bn, while Esure reported on Wednesday that premiums had fallen 4% to £410m over the same period. Top performing sectors so far todayMining 15,483.98 +2.26%Oil & Gas Producers 7,665.82 +1.80%Industrial Engineering 9,342.26 +1.05%Chemicals 10,108.61 +1.00%Fixed Line Telecommunications 4,292.55 +0.97%Bottom performing sectors so far todayInsurance (non-life) 1,822.28 -1.92%Household Goods & Home Construction 11,904.14 -1.15%Technology Hardware & Equipment 1,076.30 -1.14%Real Estate Investment Trusts 2,929.15 -1.01%Real Estate Investment & Services 2,559.49 -0.82%