"I think there are several things at work here and they are systematically being ignored by trigger happy analysts anxious to downgrade this terrific group," said Cramer.
That's what the Mad Money said about the growing negative sentiment involving insurance stocks.
On Tuesday, Credit Suisse downgraded Genworth cutting its rating from 'Neutral' to 'Underperform' citing long-term risks.
And earlier in January Fitch said a prolonged decline in underwriting profitability could lead to a downgrade for notes issued by Allstate.
Jim Cramer, however, finds the skepticism largely misguided.
"First, there have been enough catastrophes our there to take out a lot of capacity, allowing insurance rates to go up," he said.
"Second, the group's done nothing for ages and it is still, even after last year's gains, well behind the market," he added.
"Finally, and most importantly, the asset side has come back to life with a vengeance. These companies owned a large amount of housing related debt but as housing increases in value, the paper's coming back," Cramer explained.
Rather than underperform, Cramer thinks the group will perform as well as it did in 2012 – and "in fact it could outperform or do better," he said.
If you're looking to put money to work, Cramer had two suggestions, "To me AIG's the best way to play it, because it has pretty much everything that was bad that is now good. Or you might just want to go with the man who it has never been wrong to go with, Warren Buffett, and Berkshire Hathaway."
Read More: Cramer: Two Favorite Themes for 2013
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