By Adam Clark

Shares in London-listed price comparison website operators fell after a report that Amazon.com Inc. (AMZN) is considering setting up a rival U.K. portal, as the technology giant explores further penetration into financial services.

London-listed stocks of Gocompare.com Group PLC (GOCO.LN) and Moneysupermarket.com Group PLC (MONY.LN) fell. FTSE 100 insurer Admiral Group PLC (ADM.LN), which owns price comparison site Confused.com, also dropped.

The report by Reuters cited insurance industry executives who said they had talked with Amazon about a potential site, although one said there were no imminent launch plans. Amazon already offers co-branded credit cards in the U.K., but is not a direct lender.

Amazon said it doesn't comment on rumors and speculation.

Investment bank Berenberg said the U.S. technology giant's brand presence and financial ability to operate on thin margins would make Amazon a significant threat to the British incumbents, but noted the sector is already highly competitive.

"It is a saturated market, so this does come as a surprise," said Berenberg analyst Edward James. However, he noted that there is room for the sector overall to grow, with 80% of U.K, consumers still not switching any of their services in a year, and use of price comparison websites being less common across Europe.

"Whether the insurers allow Amazon through the door is something that remains to be seen. The next thing they could go into is putting pressure on premiums for insurers," said Mr. James. Shares in U.S. healthcare insurers were hit in January, after Amazon said it was teaming up with Berkshire Hathaway Inc. (BRKA) and JPMorgan Chase & Co. (JPM) to cut costs in the sector.

A spokesperson for Admiral said, "We will await what they do with interest." Moneysupermarket.com declined to comment to Dow Jones, and Gocompare.com didn't immediately respond to a request for comment.

After initial steep falls, shares in Moneysupermarket and Gocompare recovered to trade down 3.2% and 0.9% respectively at 0949 GMT. Admiral shares were down 1.6%.

Write to Adam Clark at adam.clark@dowjones.com; @AdamDowJones

(END) Dow Jones Newswires

August 16, 2018 06:22 ET (10:22 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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