Prediction: 10 Percent Drop in Insurance Market

The mortgage crisis has helped to spur on many issues in the UK market. L&G has just announced that they expect a 10 percent drop in the personal insurance market as a result of the mortgage market issues. Legal and General have reported flat first quarter sales. In other words they have not made or lost any money. They have at least beat the projections that they would have significant losses because of the pension buy outs that have been occurring. The shares in the company have eased to 5 percent though. This means that the analysts are a little hesitant in saying that L&G are going to be a good investment for the 2008 year.

UK’s third largest life insurance company has reported sales are up by one percent from the beginning of 2008. This means they have earned 372 million pounds, which is about 25 million pounds above the projections for the first part of the year. Analysts are focusing on L&G because they believe it will become more vulnerable in the coming months. The mortgage industry is weakening which means the insurance companies are going to follow soon.

L&G has reported they have weak sales in the protection and individual annuity area. They have also seen a drop in pension, bond investment, and bulk purchasing from a year ago. M- real bought out 180 million pounds in pension, but this may not help growth exponentially. Analysts are seeing that projections are unclear especially from companies like Patemoster and Pension Corporation.

L&G is still growing on one side of the industry, but if this growth also stops there is going to be a lot of trouble in the year t o come. The UK market is already struggling with bulk annuities from other companies.

L&G has seen a 14 percent fall from a year to year basis in the first quarter. They are hoping that it will at least remain steady one way or the other. Tim Breedon believes that L&G is going to fall 10 percent in 2008, but that their market shares will increase. There is no doubt the market industry is the cause of such rough times, however if everyone believes that market is more resilient things can start to pick back up. The negative news has led a lot of issues to arise. Analysts believe that sales for UK insurers like Prudential are likely to offset their weakening areas by stronger business around the world.

Back To Financial News April 2008
Travel Rewards With Your Credit Card
APS and Prepaid Gold MasterCard
The Figures On Credit Card Balance Transfers
Pointers for Balance Transfers
Credit Card Interest
Credit Offers Limited
Executive’s Life Ruined by ID Theft
Getting Around Life’s Obstacles
How To Borrow A Grand
Paying for a Good Credit Rating
UK Debt and the Mortgage Industry
Abuse of Government Credit Cards
Asian Growth Helps UK
Banks Raising Funds Offers Hope
Darling and UK Banks Going Head to Head
Estate Agents and Card Fraud
Government to Help UK Banks
Insuring UK Gardens
Interest Rates Rising with Underhanded Techniques
Lost Luggage Insurance Removed
Overdraft Charges Increase Credit Card Balances
Prediction: 10 Percent Drop in Insurance Market
Rise in the Housing Market Prices
The Scams With Telephone Calls and Security Codes
UK Insurance Costs Rising