Lower quarterly profits expected from insurers

European insurers are expected to report mostly lower quarterly profit over the next two weeks, weighed by falling stock markets, Italian earthquakes and British floods.

Renewed worries about a potential eurozone break-up fuelled a 4.5% drop in the FTSE Eurofirst share index between April and June, forcing some insurers to write down their equity holdings.

With the sector already struggling due to a combination of low interest rates, rising claims, and depleted consumer finances, that will help push underlying profit down across much of the industry, analysts say.