Cramer: ‘This Move Probably Isn’t Over’

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There's been a relentless rally in these stocks, Cramer said. And it's probably not over.

"The sharp advance in insurance stocks such as Travelers, Hartford, AIG, Prudential and CIGNA are starting to frustrate skeptics," Cramer explained. But I've got some bad news for those folks; the rallies are probably not over."

Those skeptics argue that insurance stocks remain too hot to handle and ultimately the rally will fail.

They say this area of the financial sector remains exposed to assets that are potentially toxic and at any moment the other shoe could drop. In fact, the sentiment had been so negative that some insurance stocks traded at a discount to book.

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Cramer, however, thinks recent earnings reports from these companies challenge that thesis all together. He argues earnings have been so impressive, it's all but impossible not to conclude that the sector has turned a corner – and he thinks because of the strong results, the sector will attract new money.

"Prudential just blew the doors off the quarter, due to a combination of terrific growth in Japan and a remarkable resurgence of their fixed income portfolio," Cramer said. "CIGNA is practically minting money in all sorts of insurance businesses including managed care, health and accident insurance."

Those kind of results won't be ignored, Cramer insisted.

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"Hartford had an excellent return on property & casualty, where premiums are going higher," he added. "And Travelers has been able to raise rates and buy back stock pretty consistently."

In addition, after the bell Thursday AIG reported first-quarter earnings that beat market expectations, largely due to strength in its property and casualty business. "We've emerged from this crisis and now you're seeing the strength of our earnings capabilities going forward," AIG CEO Robert H. Benmosche told CNBC.

That's noteworthy, said Cramer.

Cramer thinks most stocks in the sector have further to go. "I know insurance is boring. I rarely get people to buy these stocks when I push them," Cramer admitted. "But I don't think move is over."

Disclosure: As of Monday April 29th Jim Cramer owned shares of Hartford Financial on behalf of his charitable trust.

Call Cramer: 1-800-743-CNBC

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