U.K. Insurers Reel as Brexit Threatens $2.6 Trillion of Assets
- Aviva, Legal & General Shares tumble in London trading
- Pension deficit widens to $1.2 trillion as bond yields drop
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British insurers have been left reeling after the country’s surprise decision to exit the European Union jeopardized the value of at least $2.6 trillion of their investments.
Aviva Plc and Legal & General Group Plc, the U.K.’s largest managers of pension assets, tumbled more than 15 percent in London trading on Friday, helping to erase almost 14 billion pounds ($19 billion) from the industry’s market value. Prudential Plc, which generates most of its earnings outside the U.K., was down 8 percent.