The insurance sector’s exchange traded funds (ETFs) have been at all-time highs due to unexpected earnings from insurance companies. The second largest U.S. life insurer, Prudential Financial (PRU) came to an all-time high last week after it beat profit forecasts by 12% and earnings have jumped 36%, reports Trang Ho of Investor’s Business Daily. The world’s largest insurer, American International Group (AIG) continues to grow around the world, including areas such as Mexico and India.
These two companies help make up a portion of insurance ETFs- PowerShares Insurance Portfolio (PIC) and iShares Dow Jones U.S. Insurance Index (IAK). PIC is up 5% year-to-date and Prudential makes up 5% of the holdings. IAK is up 6%, with AIG making up 23% of the ETF and PRU 7%.
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