Shares in Aviva PLC (LSE:AV.) fell more than 4% on Monday, while Admiral Group Plc (LSE:ADM) was broadly flat, as insurance stocks were among those the market was repricing following the new tariffs announced by US President Donald Trump last week.
Beazley PLC (LSE:BEZ) fell 3.8%, Prudential PLC (LSE:PRU) 3.3% and Legal & General Group PLC (LSE:LGEN) 2.2%.
The declines came alongside sharp falls across European equity markets, triggered by concerns around the potential global economic impact of the new US tariffs and the pledges of retaliation from China, the EU and others.
Deutsche Bank analysts said the market appeared to be pricing in a global recession, with European insurance stocks falling around 6% on Friday and another 3% on Monday.
“The first-order impact to the insurers will be relatively limited,” Deutsche's insurance analysts said.
“Instead, it will be the second-order impacts to financial markets, GDP growth, and perhaps via supply chains to repair costs that will play on returns.”
The insurance sector should be a "relative safe haven", the bank beleives, though it warned that firms with higher exposure to the US and Asia are likely to be the most volatile in the near term.
It cited Prudential PLC (LSE:PRU), Aegon, and Zurich as the most exposed to large share price swings, while naming Admiral and Spain's Sampo as relative safe havens.