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Insurers outshine banks

Insurance companies in Australia are outperforming big banks in creating wealth for shareholders, reversing a trend in other mature markets.

A study by financial services consultant Mercer Oliver Wyman has found QBE and Promina are among companies that created more shareholder value on a risk-adjusted basis than retail and investment banks.

QBE was the fourth most-improved performer of 170 global companies in the past year. Promina finished second for best performer of 230 mid-sized global companies.

Australian Director David Moloney says insurers are role models on how to break out of a “straitjacket” domestic market through a focus on value, industry restructuring and overseas expansion.