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Why did the IAG share price surge 5% on Thursday?

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The Insurance Australia Group Ltd (ASX: IAG) share price outperformed the market on Thursday despite the company’s silence.

It was joined in the green by many of its S&P/ASX 200 Index (ASX: XJO) insurance peers.

As of Thursday’s close, the IAG share price is $4.40, up 2.8% on its previous close. Throughout the day, it hit a high of $4.51, representing a 5.4% surge.

For context, the ASX 200 gained 0.3% today while the All Ordinaries Index (ASX: XAO) rose 0.1%.

Let’s take a closer look at what might have gone on with the insurance giant and its peers on Thursday.

The IAG share price surged higher today despite no news from it or its direct peers.

The stock hit a near 10-year low of $4.02 last week. Thus, today’s gains might have represented some form of drawn-out rebound.

The share prices of fellow ASX 200 insurers Suncorp Group Ltd (ASX: SUN) and QBE Insurance Group Ltd (ASX: QBE) also lifted 0.65% and 2.03% respectively today.

Additionally, IAG’s home sector – the S&P/ASX 200 Financials Index (ASX: XFJ) – gained 0.7%.

IAG was the financial sector’s third-best performer today. It was beaten by Pinnacle Investment Management Group Ltd (ASX: PNI) and Virgin Money UK CDI (ASX: VUK). They ended the day higher by 3.92% and 3.18% respectively.

Weighing on the ASX 200 financials sector was the Zip Co Ltd (ASX: ZIP) share price. It hit a new multi-year low of 44 cents today.  

Unfortunately, today’s gain wasn’t enough to bump the IAG share price back into the longer-term green.

It’s now down 1.35% year to date and has slumped nearly 13% since this time last year.

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