So they have expanded scale of business and haven't been hit hard by natural disasters and have suitable reinsurance? Does market think they were conservative with new business numbers and they have a better business with a better risk spread and opportunity to cross promote new insurance to new client base? Are they going to get better than stated efficiencies?
Other option is $ are moving from overvalued bank sector to insurance as can't justify banking valuations? Will IAG produce a better dividend - if not it will sold to the crapper again?
Is this massive USA and overseas $ coming into Aussie market for diversity and security outside of USD and USA?
Just doesn't make sense how hard it was sold off now to be in demand and back to high?
SUN up even stronger again on no news.
Where are the insurers investing their premium $ to get a return greater than inflation and to give return to holders?
Just how much more premium increase will consumers and business be able take ? World outlook for growth isn't great and lots of insecurity in with Gazza, USA in turmoil along with Russia.
Any other thoughts for such strength in insurance valuation?
IAG Price at posting:
$8.93 Sentiment: None Disclosure: Held
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