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Insured losses from Hurricane Laura must be “very manageable” for the business at an estimated $eight billion because the Class Four storm averted a direct hit on Houston or New Orleans, in response to an analyst report.
“It’s too early to credibly estimate industrywide or company-specific insured losses, but we expect overall losses to remain very manageable (even assuming that Covid-19 adds some costs) since Laura didn’t directly hit Houston or New Orleans,” wrote KBW analyst Meyer Shields. He made a preliminary loss estimate of $eight billion.
The storm made landfall early Thursday morning with sustained winds of 150 miles per hour close to Cameron, La., on the Gulf Coast.
Shares of property and casualty insurers rallied Thursday. By noon,
(ticker: CB) was up 2%, at $128.13;
(TRV) was up 4%, at $118.08;
(ALL) was 0.5% greater, at $93.53, and
(PGR), up 1.5% at $93.51.
(RNR) was up almost 3%, at $186.11, and
Everest Re Group
(RE) was up greater than 3%, at $223.91.
Meyer wrote that year-to-date “catastrophe losses should reinforce pricing discipline within and beyond property catastrophe reinsurance.” His high picks embrace Chubb, Everest Re, and RenaissanceRe.
Write to Andrew Bary at [email protected]