Morgan Stanley notes that Australian insurers Suncorp (ASX:SUN) and Insurance Australia Group (ASX:IAG) are well-positioned due to predicted lower catastrophe losses because of dry weather.

Catastrophe losses in Australia are generally 40% less in El Niño years compared to La Niña years, which should positively impact motor claims as well.

El Niño, La Niña’s counterpart, is a weather pattern characterized by warmer temperatures, decreased rainfall, and a reduced risk of cyclones.

It may also be bolstering the insurers' standings.

The brokerage points out that these companies are being traded on undemanding multiples and have seen positive earnings per share revisions.

Shares of Insurance Australia Group have fallen 0.9%, while Suncorp has seen a decline of 0.7% so far.

Suncorp (ASX:SUN) is a top Australian insurance, banking, and finance corporation.