Investors reassured by better than expected first quarter results

After a sharp deterioration at the end of the last period, many of the insurance and reinsurance stocks tracked by WIR staged substantial recoveries for the two weeks ending 1st May. Although further losses by the mortgage insurance sector (unveiled as part of the first quarter 2008 reporting round) had a depressive effect on the market, it was pretty temporary and, surprisingly, impacted very little on general insurers and reinsurers: encouraging the belief in some quarters that investors were now seeing the monoline mortgage insurance sector as roughly related, but ultimately unconnected, to the general insurance sector.