THE focus of a jittery market will be on the insurance sector this week as a number of key players issue trading updates.
Major insurers Standard Life, Legal and General and Friends Provident will reveal fourth-quarter new business figures, but the focus is likely to be on capital once more.
Shares in the sector have plunged in recent days amid renewed concerns over the levels of capital held by insurers as stock markets and investments come under pressure in the financial crisis.
News that the European operation of American International Group (AIG) was launching a £636m cash-call sparked worries that other players in the sector may have to follow suit.
Shares in Legal and General have lost about a fifth of their value last week, while Standard Life stock plunged nearly ten per cent and Prudential lost 14 per cent.
Analysts are predicting that Friends Provident will on Tuesday report a 29 per cent plunge in UK life and pensions sales, to £531m.
Since reporting third quarter profits of $10.9bn in October, the outlook for Royal Dutch Shell and the rest of the sector has undergone significant change due to the collapse in oil prices, falling demand for oil products and the onset of a global recession.
Shell’s annual results on Thursday will provide one of the first opportunities to assess the industry’s response to the changed economic climate, particularly in terms of future investment plans and dividend prospects.
The quarter is traditionally BSkyB’s most important period for attracting new subscribers, as consumers look to have the service for the Christmas holidays.
Analyst Sam Hart, of Charles Stanley, is forecasting pre-tax profits of £290m in the six months to December 31, up 15 per cent on the same period in 2007. He predicted a net 145,000 new TV subscribers in the period, taking the total to 9.21 million.
■ Companies reporting this week include:
Today
Trading update: Wolseley
Tomorrow
Interims: Games Workshop, PZ Cussons
Wednesday
Interims: BSkyB
Thursday
Finals: AstraZeneca, Royal Dutch Shell
Friday
Interims: Misys
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