Hurricane Impact Material but Manageable for Insurers
We expect reinsurers to feel the biggest impact and see Travelers and Berkshire Hathaway as attractive today.
Brett Horn: In the last two weeks we've had two major catastrophes: Hurricane Harvey in Houston and Hurricane Irma in Florida. The TVs have been filled with visuals of the damage that they've inflicted, and certainly there's a lot of economic damage resulting from these two events.
In terms of the impact on our insurance coverage, though, there's a couple of mitigating factors to take into account. First, with Hurricane Harvey, most of the damage related to Harvey is due to flooding, which private insurers do not cover. We think that will keep losses from Harvey fairly manageable for our coverage.
Brett Horn does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.