Shares in UK insurers fell on Wednesday, with traders pointing to an article in the Insurance Post that quoted the Financial Conduct Authority’s Head of Insurance Matt Brewis as saying premium finance was a “poor product”.
At 1258 GMT, Direct Line shares were down 5.8%, and Admiral shares were down 5.9%, falling to the bottom of the FTSE 350.
In a note, Berenberg equity analysts said the weakness in UK motor insurers could be attributed to the article in the Insurance Post, which was published on Tuesday. They said the implication from the report was there could be changes to the way insurers price premium finance products.
