Insurers’ excellent returns are making them the darlings of the investment community. Analysts say terrorist threats are helping with the move to Australian insurance stocks, because investors are focusing their attention on major corporates with large-scale domestic earnings, and that’s our general insurance industry leaders. But the impact of recent consolidations, drastically higher premiums and a relatively benign claims climate might not have been as well understood as they are now. Analysts also attributed the rises to impressive underwriting results reported throughout March.

IAG was 4 cents firmer at $4.69 late last week and Promina nudged up 1c to $3.55. Number 2 insurer Suncorp also benefitted from the upswing, with its shares rising 12 cents to $14.15.

JP Morgan Analyst Shane Fitzgerald told Sunrise Exchange News he doubts terrorism threats would have anything to do with the increases. Favourable market conditions are more likely. “The markets are rallying at the moment, and a good profits season has lifted the industry into view,” he said. “The insurance bosses are all overseas at the moment pushing their brands, so that all helps.”

AMP climbed 4 cents to $5.45. It has risen 11% since announcements earlier this month that it had more than doubled its full-year operating profit because stock market gains boosted investment income and the company cut costs.