Hurricane Michael Approaches: A Guide to Stock Market Exposure

(Bloomberg) -- Investors are tracking Hurricane Michael as it heads toward Florida with 90-mile-per-hour winds, posing potential consequences for companies in the insurance and energy industries, among others. The storm, forecast to be the second hurricane to hit in the U.S. in a month, is expected to move across the eastern Gulf before making landfall on the Florida panhandle. Currently a Category 1, it could increase to a 2 or 3 by the time it reaches the U.S. on Wednesday.

Here’s a recap of what stocks Wall Street is watching:

Insurance

• Insured losses should be manageable and have minimal impact on property reinsurance pricing, KBW analyst Meyer Shields wrote in a note to clients Tuesday. Exposed insurers and reinsurers will probably face modest pressure
• If the storm strengthens, reinsurance stocks may face the most pressure since Florida is a heavily reinsured market, Wells Fargo’s Elyse Greenspan wrote in an Oct. 8 report. Losses could be in the double-digit billions if the hurricane hits Florida as a strong Category 3, and below $1 billion if it hits as a Category 1 or weak Category 2
  • Exposed reinsurers include Axis Capital, Everest Re, RenaissanceRe and AIG
  • Exposed homeowners insurers include Universal Insurance, FedNat, Heritage, Progressive and United Insurance
  • Exposed personal-auto insurers include Berkshire, Progressive, Allstate, Travelers and National General
  • Exposed commercial insurers include AIG, Assurant, Zurich, CNA, United Insurance, Chubb and Progressive
  • On a consolidated basis, the most exposed insurers include Berkshire, Progressive, Allstate, Universal Insurance and AIG

Energy/Utilities

Other Stocks to Watch

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