Amlin slides off FTSE 100

by David Masters

Story link: Amlin slides off FTSE 100

Amlin watched itself slide off the list of Britain’s 100 biggest companies this week as its share price plummeted.

Its fall in value makes it the final Lloyd’s of London insurer to crash out of the FTSE 100 index.

The decline in Amlin’s stock was blamed on its share issue to fund its acquisition of Fortis Corporate Insurance.

“The timing of Amlin’s announcement of a placing of 23.5million shares to fund the purchase of Fortis Corporate Insurance (FCI), and the subsequent significant fall of its share price, has led to the insurer being unable to maintain its position in the list of Britain’s 100 largest companies,” said Kirstie Gordon, insurance specialist at BDO Stoy Hayward Financial Services Group.

She added that Amlin could recover its position if the current rise in insurance premiums continues.

“It’s not all doom and gloom for the insurance giant, as it looks set to benefit from an upward trend in insurance and reinsurance pricing, which suggests that a move back into the FTSE 100 could not be all that far away,” Gordon said.