Insurance stocks hammered over past week as sovereign debt fears escalate

Aviva had 8% wiped of its share price following mounting sovereign debt fears over the past week.

The share price tumbled, dropping from 452.70p on Monday, April 11, to 414.70p on Monday, 18 April.

The composite insurer revealed last May that it held around £900m of sovereign debt, although that is less than 1% of its portfolio. Fears are growing that Greek bondholders will need to take a haircut.

Aviva stock was especially badly hit after rating agency S&P put the triple AAA ratings of US sovereign debt on negative outlook on Monday.

Aviva opened at 434.80p and it closed at 414.70p on Monday. Yesterday Aviva's shares bounced back slightly to 417.80p.

Most insurers suffered share price falls over the past week because of sovereign debt concerns, although Aviva's was the worst drop.

RSA was down 3.6% and Admiral was down 0.3%.

Topics