Investors have unfairly penalised the European insurance sector by rating it the same as banks, yet earnings and dividend growth are markedly superior and the risk profile different, according to a report from investment bank Nomura. The investment bank finds the reluctance to own European insurance stocks hard to understand and believes the sector is due for a re-rating. An efficient way for investors to gain exposure to this sector is via a European insurance exchange-traded fund (ETF).

According to data from Credit Suisse, European ETFs recorded inflows of $3,234m in May, though the result was skewed by the German-domiciled iShares DAX ETF (EXSI), which recorded inflows of $4,744m. May was a busy month for European ETF issuers, with 21 new launches. The highlight of the month was perhaps the launch of 5 ETFs by Vanguard – a much anticipated entry into the European market and one that may potentially change the dynamics of the market itself.