Worst-case scenario not happening and insurance sector soars
Though damage from Hurricane Irma is extensive, property insurers are breathing a sigh of relief with the storm nowhere near as catastrophic as many had feared.
Shares in insurance companies that had been hammered in the days leading up to the storm are surging Monday, the first day of trading since the hurricane was downgraded to a tropical storm.
Particularly strong are companies with a strong presence in Florida, like Federated National Holding, HCI and Heritage Insurance.
Citi analyst James Naklicki is estimating U.S. insured loses to be about $20 billion, with totals reaching up to $50 billion. A direct hit to Miami, he says, could have meant up to $150 billion in costs.
Larger insurers like Travelers, Allstate and Progressive are also rising.