European firms feel the pinch.

(From Insurance Day)

WHILE for some insurers the current business environment may be appealing, much of the industry is still suffering. In a marked turnaround from recent years, it is the life insurance sector that is feeling the most pain in the UK.

Falling stock markets have put capital margins under pressure. At the same time, sales of life and pension products are down in some regions. Aviva, one of the UK's largest insurers, reported a 9% fall in new business, although it did see increased bancassurance sales from overseas. Another of the UK big life insurers, Prudential, reported a 14% fall in sales of new life and pensions products and a 7% fall in global life and pensions.

In Germany several insurers showed the pressure they are now under. Three of the country's largest insurers are under very close scrutiny at the moment. Allianz bosses came under attack from shareholders at the group annual general meeting on Tuesday. New changes at board level, with the appointment of new chief executive Michael Diekmann, may well be a response to shareholder disappointment with the company's performance since acquiring ...