The insurance sector has fared better than its banking peers in recent weeks and was buoyed further today by strong interim results from Prudential today, according to The Share Centre.

Nick Raynor, investment adviser at The Share Centre, said today's 34 per cent increase in profits to approximately £1.7 billion was

He said, 'The insurer's operations in Asia played a significant part in boosting profits as new business sales in the area increased 36 per cent to £713 million.

'Looking ahead, Prudential's management is confident that this momentum can continue until at least the end of the year.'

However, Prudential remains a hold for The Share Centre, which noted the failed takeover of US insurance giant AIG's Asian operations earlier this year.

'The costs of failing to buy Asian business AIA stands at £377 million, down from the original figure of £450 million,' he said.

'The failure of this venture was disappointing for investors and Prudential will be looking to regain support by increasing the interim dividend by 5 per cent to 6.61p per share.'

Raynor said the preferred stock in the insurance sector was Aviva, which offered a greater dividend than Prudential.

He added, 'This is a healthy dividend, however Aviva, our preferred play for investors looking at the insurance sector, is offering just under 8 per cent.

'Investors seeking income could do worse than to take a closer look at the sector as a whole.'