European insurers said tough economic conditions triggered by the eurozone debt crisis were hitting the life insurance market, leaving the non-life and emerging markets sectors to take up the slack. Aviva and ING both reported weaker quarterly life sales in Europe, where consumers have been putting off savings decisions amid austerity measures aimed at restoring confidence in governments' ability to repay debt.
"Some of the short-term headwinds in those markets are very real," Aviva chief executive Andrew Moss told reporters on Thursday. European insurance shares are down 12 percent this year, reflecting fears sovereign defaults could force insurers to take writedowns against government bond portfolios, as well as worries over the impact of a sluggish economy.
Weaker third-quarter trends in life insurance were partly offset by a stronger non-life performance, with reinsurer Swiss Re and commercial insurer RSA both reporting better than expected sales. "The non-life insurance business seems to be doing well," said Jean Francois Tremblay, an analyst at RBC Capital Markets.