LONDON (Reuters) - European insurance stocks tumbled on Wednesday as traders reacted to a report U.S. Internet giant Amazon (AMZN.O) is considering further extending its empire to offer home insurance.
The STOXX 600 insurance sector index .SXIP hit a session low after a report in The Information, citing an unnamed source, said Amazon.com had contemplated offering home insurance as an offshoot of its home connectivity business.
The index fell as much as 1.2 percent, among the worst-performing sectors. All but one of Europe’s insurance stocks were in the red, and Britain’s Direct Line (DLGD.L) sold off sharply as traders priced in the potential for new competition from Amazon.
“Anything standing in the way of Amazon tends to get crushed,” said a trader.
Reporting by Helen Reid