Insurance Industry Reports Disastrous Month
Allstate Corp. (NYSE:ALL) reported today that the first quarter of this year cost the company $600 million in insurance claims, making it the company’s most costly month since Hurricane Katrina struck New Orleans in 2005. The grim financials are thought to be the product of wide-ranging storm damage that has accumulated in the Midwest in recent weeks. Towns such as Alabama and Joplin, Missouri, were leveled by a wave a tornados that swept through the area. The recent news, coupled with announcements of substantial losses in April, will cost the insurer an estimated $2 billion.
Allstate is not the only company projecting heavy losses from the string of natural disasters. The Traveler’s Company (NYSE:TRV) is also estimating post-tax losses exceeding $1 billion for the months of April and May. With hurricane season on the brink, the expenses may continue to pile-up for major coverage providers, and exact a toll on shareholders’ stock values as well.
Here’s a look at how the news if affecting companies across the Insurance Sector today:
Allstate Corp. (NYSE:ALL), is flat in trading today, Traveler’s Company (NYSE:TRV), is up .63%, White Mountains Insurance (NYSE:WMT) is also up .70%, American Financial Group (NYSE:AFG), up .41%, Progressive Corp. (NYSE:PGR) down .10%, Safety Insurance Group (NASDAQ:SAFT), up .29%, American International Group (NYSE:AIG), up .11%. and Hartford Financial Services (NYSE:HIG), posting gains of .55%.
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