Insurance stocks sped higher on a day when most defensive stalwarts were overshadowed by more growth-orientated sectors.
Hopes for further monetary easing this week from the Federal Reserve and the European Central Bank were one reason for the sector's buoyancy. Another was market talk that the recent rally might just mark a genuine turning point for equities globally.
On the assumption that German portfolio valuations are now likely to be far less depressed, Allianz and Munich Re pushed ahead strongly, rising 3.6 per cent to €274.90 and 4.6 per cent to €313.50 respectively in busy trading volumes.
Allianz was also boosted by Lehman Brothers, which voiced concerns about the integration of Dresdner Bank but took a positive view of the group's mainstream insurance operations.
There was no shortage of perky performances elsewhere in the sector. Swiss Reinsurance advanced 2.5 per cent to SFr172.75.
Axa gained 4.6 per cent to €26.18, RAS 4.4 per cent to €13.99 and ING 3.3 per cent to €29.65.
Zurich Financial, hit this year by restructuring concerns, also rallied, helped by broker promotion of the group's Converium offshoot, estimated to be worth $2 billion and earmarked for a separate flotation.
UBS Warburg and Merrill Lynch, book runners to the spin-off, are expected to price and timetable the issue later this month. Zurich Financial rose 4.3 per cent to SFr16.50. Easier money hopes and a number of sector consolidation stories got behind banks. ABN Amro rose 3.8 per cent to €17.80, Deutsche Bank 5.2 per cent to €67.70 and SociΘtΘ GΘnΘrale 3.1 per cent to €57.85.
The main takeover rumour of the day centred on troubled Italian bank Bipop, which shot ahead on a weekend press report that a potential bidder was in the wings. The stock, which fell heavily last week when its auditors withdrew approval of the bank's most recent earnings statement, was up 5.9 per cent at €1.95 in late trading.
