Insurers have been in the spotlight in recently and today Legal and General keeps the trend going by being one of the leading fallers in the FTSE 100.
Fears about solvency in the sector have faded in the past few days, with the merger approach earlier this week by Resolution to Friends Provident, up 1.18p to 71.78p, stirring things up.
But today L&G has lost 0.89p to 56.44p after analysts at ING issued a sell note on the business and cut their target price from 50p to 36p. On the insurance sector generally, ING said it expected the interim results season in August to show declining levels of new business as the recession bites, but it had no real worries about solvency. On L&G in particular, it said:
"We continue to have concerns about the company's inability to generate cash. We see it as the worst placed UK name to withstand any market-generated shock such as needing to top up corporate bond default reserves again."
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