Europe stocks higher as insurers, banks gain

* FTSEurofirst 300 up 1.2 percent

* AXA leads insurers higher; banks rebound

* Defensive drugmakers higher

* Energy shares track weaker crude

By Joanne Frearson

LONDON, Sept 25 (Reuters) - European shares rose early on Thursday, led by banks and insurers and tracking gains in U.S. index futures on hopes for an emergency meeting to hammer out details of a rescue plan for the financial sector.

By 0910 GMT, the FTSEurofirst 300 index of top European shares was up 1.4 percent at 1,116.81 points in choppy trade, rebounding from a low of 1,100.56. The index has fallen nearly 27 percent this year.

Insurers were among the top gainers in Europe after AXA (AXAF.PA: Quote, Profile, Research, Stock Buzz) Chief Executive Henri de Castries told Europe 1 radio that the current crisis offers the group opportunities to strengthen its market position. Axa was 3.3 percent higher.

Swiss Re (RUKN.VX: Quote, Profile, Research, Stock Buzz) was 3.1 percent higher after the group said its investment portfolio remains sound despite tough financial markets and reaffirmed its targets as additional writedowns were lower many had expected.

Banks were stronger, with Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz) gaining 3.5 percent and UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) adding 4.3 percent.

Uncertainty continued in the banking sector as investors grew anxious about when the $700 billion rescue plan for the U.S. financial sector will be approved by Congress.

"There is still uncertainty about U.S. Treasury's bail out phase. There needs to be quick action, it is important that investors know what is going to be done about it as the alternatives are too dire," said Bernard McAlinden, market strategist at NCB Stockbrokers.

An emergency meeting has been called for Thursday by U.S. President George Bush to hammer out details.

"That (the meeting) is the key to make things happen. There is great value in the market. In the U.K. the dividend yield has exceeded the yield on gilts and value is emerging as well in Europe," said Mike Lenhoff, strategist at Brewin Dolphin.

"What is lacking is the confidence. The bail out could help provide it - that the fundamentals are being addressed," added Lenhoff.

Across Europe, the FTSE 100 .FTSE index was ahead 0.6 percent, Germany's DAX .GDAXI was up 1.3 percent and France's CAC 40 .FCHI was 1.3 percent higher.

ENERGY SHARES FALL; DEFENSIVE DRUGMAKERS GAIN

Energy stocks slipped as crude CLc1 fell back 1.1 percent to $104.57. Analysts said that evidence of slowing demand in the United States, the world's largest energy consumer, and lingering uncertainty over the bank bailout plan, will probably keep gains in check.

BG Group (BG.L: Quote, Profile, Research, Stock Buzz), BP (BP.L: Quote, Profile, Research, Stock Buzz), Royal Dutch Shell (RDSb.L: Quote, Profile, Research, Stock Buzz) and Total (TOTF.PA: Quote, Profile, Research, Stock Buzz) were down between 0.6-1 percent.

Miners were mixed. Anglo American (AAL.L: Quote, Profile, Research, Stock Buzz) rose 2.8 percent, while Eurasian Natural Resources (ENRC.L: Quote, Profile, Research, Stock Buzz) fell 3.3 percent and Lonmin (LMI.L: Quote, Profile, Research, Stock Buzz) lost 1.4 percent.

The pharmaceutical sector also performed well as investors decided to take a defensive stance.

Sanofi-Aventis (SASY.PA: Quote, Profile, Research, Stock Buzz), Novartis (NOVN.VX: Quote, Profile, Research, Stock Buzz) and GlaxoSmithKline (GSK.L: Quote, Profile, Research, Stock Buzz) were trading between 0.4-1.7 percent higher. (Editing by David Cowell)