March 8 (Reuters) - UK's FTSE 100 tumbled on Wednesday, with Admiral being among the main losers after the motor insurer slashed its annual dividend, while Federal Reserve Chair Jerome Powell's warning of a higher and faster pace of monetary tightening dented sentiment further.
The blue-chip FTSE 100 (.FTSE) shed 0.3%, while the mid-cap FTSE 250 (.FTMC) fell 0.7%.
Admiral Group Plc (ADML.L) slumped 4.2% to hit a four-month low. The firm cut its full-year dividend and its annual profit missed estimates due to increased claim costs amid higher car repair prices.
The FTSE 350 non-life insurance sector (.FTNMX303020), which includes Admiral, dropped 1.7% by 0927 GMT.
"The insurance sector is having a much more difficult time defending their margins and maintaining their dividends in the current rising interest rate environment and approaching economic slowdown," said Marija Veitmane, senior multi-asset strategist at State Street Global Markets.
While London's major indexes are set to end the quarter on a firmer note, after a volatile start to the year, the non-life insurance sector is down nearly 10% and is among the top sectoral decliners over the past three months.
On Wednesday, global equities were in a grim mood following Powell's views that the Fed will likely need to raise rates more than expected in response to recent strong U.S. data.
British investors on Wednesday fully priced in a 0.25 percentage point increase in Bank of England (BOE) rates at its March meeting.
Legal & General Group Plc (LGEN.L) fell 2.1% after it said operating profit at its asset management division declined 19% in 2022.
Quilter Plc (QLT.L) added 3.9% and was among the top gainers on the mid-cap FTSE after the fund manager reported an annual rise in net-inflows from the previous year.
Meanwhile, a survey by Recruitment and Employment Confederation/KPMG showed Britain's labour market showed signs of cooling as permanent job placements fell and pay growth slowed in February.
