The Insurance Australia Group Ltd (ASX: IAG) share price marked a new 12-month high today, hitting $5.09 in late morning trade.
Shares of the general insurance giant have since settled at $5.05 each, up 1.31% on yesterday's closing price at the time of writing.
IAG is outperforming the S&P/ASX 200 Financials Index (ASX: XFJ) which is currently just 0.14% higher.
Meanwhile, the broader market is also up, with the S&P/ASX 200 Index (ASX: XJO) gaining 0.4% so far today.
So why are IAG's shares delivering such a cracker performance on Wednesday? Let's investigate.
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What's going on with the IAG share price?
There's no news from the company today to make sense of the surge in its share price.
But near the end of October, the company received some positive coverage which could have added conviction to the idea that it's worth buying.
Watermark Fund Management principal Justin Braitling believes that general insurers such as IAG could be worth a look, thanks to the benefit of rising interest rates and the depressed valuations of companies in the industry.
Wilsons' analysts also singled out IAG as being a quality pick for income investors due to its strong dividend yield, earnings quality, long-term growth outlook, and other factors.
Fellow insurer Medibank Private Ltd (ASX: MPL) is up today too. It's made a 2.46% gain despite suffering a significant cyber attack that rocked its valuation towards the end of October.
IAG share price snapshot
The IAG share price is up 18.66% year to date. Meanwhile, the S&P/ASX 200 Index is down around 6% over the same period.
The company's market capitalisation is around $12 billion.
