It was steady-as-she-goes for insurance stocks in the second quarter, based on the performance of A.M. Best’s stock indexes, according to an exclusive story in BestWeek U.S./Canada.

Having been spared the worst of an early 2006 correction that hit many of the firms in the blue chip Dow Jones Industrial Average particularly hard, the sector did not share as broadly or robustly in the ensuing year-over-year rally.

Industry stocks saw quarterly gains in every region and market type, but none exceeded those of the Dow. A.M. Best’s Global Insurance Composite Index (AMBG) closed the quarter at 1,393.77, up 4.66% for the quarter and 4.76% year-to-date, compared with the Dow’s gains of 8.53% and 7.59%, respectively.

“The Dow has had a fairly speculative run,” said W. John Williams, senior business analyst with A.M. Best’s analytical services group. “What you’re seeing is a relative change from a year ago, where the Dow has regained what it lost, but the insurance stocks were not down as far to begin with. They tend to move together, but I really can’t see the Dow being priced as it is. You’ve had a lot of hype and a lot of speculation in the last quarter.”

In BestWeek Europe:

• China’s insurance market is growing quickly as it struggles to keep pace with its rapidly expanding economy, but some in the industry are starting to worry about the dangers of its growth being a little too rapid.

• Climate change and the associated risks it may bring with it are high priorities for property/casualty insurers and reinsurers, given the variety of related potential exposures the industry anticipates.

And in both editions of BestWeek: The Best’s Global Insurance Composite Index finished the week of July 5 up 21.93% from a year ago. The composite index reflects the performance of 180 insurance stocks. The week’s top performers were Dongbu Insurance Co., Hyundai Marine & Fire, LIG Insurance, First American, and Meritz Fire & Marine.