FTSE 100 movers: Bunzl gains on results; insurers hit by Ogden rate cut

London's FTSE 100 was flat at 7,243.15 in afternoon trade, held back by weakness in the insurance sector.

Distribution and outsourcing company Bunzl advanced as it reported a 12% jump in full-year pre-tax profit to £362.9m, boosted by the post-Brexit vote slump in the pound.

Consumer goods group Unilever was on the front foot after a press report that shareholders are prepared to back a demerger of its food operations after its rejection of an unwanted £115bn takeover approach from Kraft Heinz.

Insurers Direct Line and Admiral were under the cosh after the Ministry of Justice said the discount rate used to calculate lump sum payouts has been cut to -0.75% from the 2.5% rate that was in place since 2001. The change in the rate will mean insurers will have to pay out more to personal injury claimants.

Admiral said on Monday that it would take a £70m-100m hit on 2016 profits, while Direct Line said the changes would reduce pre-tax profit by between £215-230m after reinsurance recoveries.

Nicholas Hyett at Hargreaves Lansdown said: "Longer term we suspect the impact of this change on profits will be minimal, as the industry seeks to raise prices to offset the greater liabilities."

London Stock Exchange was also under pressure as its merger with Deutsche Boerse looked to be dead in the water. On Sunday, the LSE said it did not think the proposed merger will be approved by the European Commission after competition regulators came up with "unexpected" demands last week.

Risers

Bunzl (BNZL) 2,235.00p 2.95%
Next (NXT) 3,833.00p 1.11%
Unilever (ULVR) 3,813.50p 1.07%
Mondi (MNDI) 1,882.00p 0.91%
BHP Billiton (BLT) 1,319.00p 0.84%
BP (BP.) 450.85p 0.84%
Anglo American (AAL) 1,263.00p 0.84%
Compass Group (CPG) 1,479.00p 0.82%
Convatec Group (CTEC) 233.40p 0.73%
CRH (CRH) 2,684.00p 0.64%

Fallers

Direct Line Insurance Group (DLG) 341.40p -6.36%
London Stock Exchange Group (LSE) 3,041.00p -2.69%
Admiral Group (ADM) 1,830.00p -2.14%
Fresnillo (FRES) 1,499.00p -1.70%
SSE (SSE) 1,525.00p -1.42%
Royal Bank of Scotland Group (RBS) 234.90p -1.39%
Severn Trent (SVT) 2,315.00p -1.28%
GKN (GKN) 340.90p -1.22%
Capita (CPI) 550.50p -1.17%
Land Securities Group (LAND) 1,055.00p -1.12%