UPDATE 2-Britain's FTSE 100 ends with a weekly loss as insurers slide on dividend woes

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* FTSE 100 down 1.2%, FTSE 250 drops 2.3%
* UK insurers down after EU asks peers to suspend dividend
* London bus operators gain as government throws lifeline
* BP , Royal Dutch Shell drop despite gaining oil prices

(Updates to market close)
By Sruthi Shankar and Devik Jain
April 3 (Reuters) - Britain's FTSE 100 share index logged
its fifth weekly decline in six on Friday, with insurers leading
losses after a European Union regulator urged them to halt
shareholder payouts, while oil stocks retreated after a recent
surge.
The blue-chip index .FTSE closed down 1.2%, and mid-cap
shares ended 2.3% lower.
Legal & General LGEN.L , Aviva AV.L and Prudential
PRU.L fell by between 3% and 10% after the regulator asked
insurers and reinsurers in the EU to suspend dividends and share
buybacks, and consider postponing bonuses as a buffer against
possible losses due to the coronavirus pandemic. British insurers still need to follow EU insurance
regulations during the Brexit transition period. Legal & General
said it still planned to pay a 2019 dividend. "The action from the European Central Bank and the Bank of
England in relation to bank dividend should have been a warning
for insurers," CMC Markets analyst David Madden said. "In this
day and age, you want to make sure that you're as liquid as
possible."
With many companies announcing freezes or cuts in their
payout policies, notably in the banking sector, Barclays on
Wednesday forecast that dividend paid by companies listed on the
pan-European STOXX 600 index .STOXX will fall by about 40%
this year. The FTSE 350 life insurance index .FTNMX8570 is down 40%
this year, compared with a 28% drop in the blue-chip index, also
amid concerns over potential large claims due to the coronavirus
outbreak.
Both the FTSE 100 and the FTSE Mid 250 logged weekly losses
as data from across the world confirmed investor fears of a
sharp economic slump driven by the outbreak.
A survey showed Britain's services and manufacturing firms
suffered a record downturn in March. After Thursday's numbers showed another record surge in U.S.
weekly jobless claims, investors were less shocked to see the
U.S. economy shedding 701,000 jobs in March.
Shares in BP BP.L and Royal Dutch Shell RDSa.L fell more
than 4%, after rallying on Thursday, although oil prices climbed
further on hopes of a huge global supply cut deal between Saudi
Arabia and Russia. O/R
Information services provider Ascential ASCL.L tumbled
14.2% as it scrapped its 2019 dividend and said it was
commercially not viable to run the Cannes Lions Festival this
year. London's bus operators First Group FGP.L , Go-Ahead Group
GOG.L , National Express NEX.L and Stagecoach Group SGC.L
gained between 4% and 12% as they welcomed 167 million pounds
($204 million) in aid from the government to keep commuter
services running for essential staff. = 0.8169 pounds)