BUZZ-European Insurers: Fall after EU urges freeze on divs, buybacks

(Adds reaction to German regulator comments, further share prices, analyst comments)

** European insurance stocks slide after the European Union calls for a temporary freeze in dividends and share buybacks amid the coronavirus pandemic

** Shares in NN Group, Axa, Aviva, Prudential, Aegon, ASR Nederland and CNP Assurances fall between 4% and 10%

** NN Groep and Aegon lead the STOXX 600 index lower

** While JP Morgan expects all insurers to follow this guidance, it says the companies should in time be able to return to distributing profits as they see fit

** It also says that German regulator BaFin's statement that a payout ban for insurers is not necessary "implies that Allianz, Munich Re and others retain the flexibility on dividend payments if they feel their balance sheet remains strong"

** German sector stocks outperform European peers, with Allianz down 1.5%, Talanx down 1.7% and Hannover Re 0.1% higher

** KBW says it is critically important for companies to define what "temporarily suspend" means

** "Constructive guidance that emphasises delay rather than cancellation means that the time value of the impact should be small and probably offset by the social responsibility," it says