Lloyd's insurer Amlin rallied to a fresh all-time high this week, as investors were bullish on the sector, predicting further consolidation and some bumper profits.
As Insurance Times went to press, the stock was trading at an unprecedented 310p. Hopes that good times are ahead is a view clearly shared by underwriting director John Andrews, who has spent £33,000 putting his money where his mouth is. He bought 108,832 shares in the company, paying 303p per share.
The sector has benefited from a benign hurricane season, something that analysts believe will lead to earnings upgrades.
With Catlin bidding for Wellington and private equity firm Alchemy pouncing on independent syndicate Cathedral Capital, dealers are hopeful of more takeover activity . This has also aided Hiscox, currently trading at 277p.
Plans are also believed to be afoot to bring a new £260m insurance vehicle to the market later this month. This business is understood to be backed by US insurer White Mountain and French banking group Ixis and will invest mainly in reinsurance. IT
Yvette Essen is stock market reporter for the Daily Telegraph
