According to Limra International -- an insurance and financial services trade group -- life insurance sales rose 7% in the three months ended June 30. This is the second straight quarter of growth in the industry and a good sign for The Principal Financial Group (PFG).

The Principal appears to be channeling in a range between support at $21 and resistance at $31 and is currently sitting just above support -- which should be strengthened by the bullish life insurance sales numbers.

American International Group (AIG) trimmed its tab to the American people by $25 billion on Tuesday. The insurance company, plagued by fallout from the financial crisis for more than a year, moved two subsidiaries -- American International Assurance and American Life Insurance -- into special units that are used to separate a business from its parent company. A spinoff or sale is the next logical step.

For now, AIG is holding on to the companies and giving the U.S. government preferred equity in the two life insurers. When AIG decides to send the companies public or divest via a private transaction, the feds (and taxpayers) will be able to cash in. Before becoming too optimistic, keep in mind that a timetable hasn't been set.

"The hands-down choice for growth in the insurance sector is in China, where the industry is just getting off the ground." says says growth stock expert Timothy Lutts.

In The Cabot Stock of the Month Report, he suggests, "CNinsure (CISG) is the king of the Chinese insurance industry. We believe the stock most attractive insurance industry investment in China today.

"When properly managed, a property and casualty insurance company is an excellent vehicle for participating in a region's growth. However, the average age of top insurance companies in the U.S. is 108 years and their assets of the U.S. are growing slowly.

China Life Insurance (NYSE: LFC) implied volatility is Elevated as LFC is near a record high. LFC offers products and services, including individual life insurance, accident insurance, and health insurance in China. LFC is recently up $2.97 to $66.21. LFC over all option implied volatility of 46 is above its 26-week average of 39, according to Track Data, suggesting larger price fluctuations.

ICICI Bank (NYSE: IBN) overall implied volatility is Elevated at 47. IBN is India's second largest bank, with total assets of over $79 billion USD as of 3/31/07. IBN over all option implied volatility of 47 is above its 26-week average of 41, according to Track Data, suggesting larger price fluctuations.

Daily options update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

General Electric has a few news items this morning for investors to digest -- or ignore, as the case may be. None of it looks very major. It's just the usual mix of deal talk and and legal wrangling. Here's the headlines:

- A South African firm, Sanlam, is in talks with GE to buy its U.K. life insurance business. Sanlam later confirmed that was true, but called talks "embryonic."

- GE Capital and Arden Capital Realty have agreed to settle class action law suits filed by shareholders who protested terms of their pending merger. GE's real estate group is buying Arden for about $5 million, plus assuming its debt.

GE's stock opens this morning at $33.97 and I doubt this news will have much impact, although I think both are mild postives for GE.