Merrill Lynch is highlighting the insurance sector as offering good value for investors at the moment, particularly companies which have been doing small deals to improve the quality of their earnings.

Irish Life & Permanent has announced the sale of two of its three US businesses and is also to sell its small door-to-door insurance business. The sale of the US businesses was expected and it is keeping its third, Guarantee Reserve, under review. The disposal of its door-to-door sales activities was unexpected although this represents a very small portion of the overall business.

Life & General has sold its subsidiary, Fairmount, to Brown shipley. This is a non-core part of the business and should be earnings enhancing.

CGNU has been consolidating its position in the life market in Spain, where it is already the fifth-biggest life company. It is going into partnership with Unicaja, which is strong in the southeast.