Brexit - In case you hadn’t heard, Britain voted to leave the EU. As expected, this was a dark day for insurers as their shares were hit hard with fears about how the sector would cope... But that isn’t the full story.
The bounce back has been swift with life and general insurers in a position to report their half year figures easing investor’s nerves. Share prices have also recovered following the initial 20% drop. Its fair to say that for some insurers, Brexit provided a boost with the value of overseas earnings increasing with the collapse of the Pound against the US dollar.
Positivity is catching with many general insurers in the market agreeing that Brexit presents a structural challenge rather than strategic and that in some cases will open the doors to new opportunities.
Businesses remain cautiously optimistic. They have adapted looking at alternative investments to government bonds and traded assets, which have become less attractive, to direct investments with one large insurer planning to double direct investment to £15bn over the medium term.
This is all great news! Whether it be Lloyds, life or general, insurance is a resilient market and Marks Sattin has seen uplift in new opportunities in the sector and across financial services in general. Companies continue to plan for the future rather than worry about how to recover