Morningstar

Florence's Impact on Insurers Looks Manageable

We expect limited losses within our coverage and will maintain our fair value estimates and moat ratings for all the P&C insurers we cover.

Securities In This Article
The Travelers Companies Inc
(TRV)
Chubb Ltd
(CB)
Allstate Corp
(ALL)
American International Group Inc
(AIG)

While Hurricane Florence has created substantial devastation, we think the impact on insurers looks manageable. By the time it made landfall, Florence had been reduced to a Category 1 storm. Given that homeowners policies tend to exclude flooding, which is handled under government programs, the diminished wind speeds (the category rating relates only to wind speed) could help to reduce insurers' losses. An additional factor is that the North Carolina homeowners market is dominated by mutuals, with mutuals holding the top four market share positions. Still, within our coverage,

In commercial lines, we see

Morningstar Premium Members gain exclusive access to our full analyst reports, including fair value estimates, bull and bear breakdowns, and risk analyses. Not a Premium Member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.

More in Stocks

Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue

Estee Lauder, Kraft Heinz, and Dollar General are our top consumer defensive stocks.
Erin Lash, CFA

Industrials: Many Stocks Overvalued After Q3 Outperformance

Our top stocks in this sector are Chart Industries, Wesco, and CNH Industrial.
Brian Bernard, CFA, CPA

Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities

In this sector, our favored stocks are Albemarle, Dow, and FMC.
Andrew Bischof, CFA and Travis Miller

About the Author

Brett Horn, CFA

Senior Equity Analyst
More from Author

Brett Horn, CFA, is a senior equity analyst, AM Financial Services, for Morningstar*. He covers P&C insurers and payment companies. He also developed the insurance valuation model by the equity research team.

Before joining Morningstar in 2006, Horn worked in the banking industry for about a decade, most recently as a commercial loan officer for First Bank, where He was responsible for underwriting loans and managing relationships with middle market clients. Before that, Horn worked for Mizuho Corporate Bank, where He managed loan portfolios and client relationships, primarily with Fortune 500 companies.

Horn holds a bachelor’s degree in business administration, with a concentration in finance, from the University of Wisconsin. Horn also holds a master’s degree in business administration from the University of Illinois. He also holds the Chartered Financial Analyst® designation.

* Morningstar Research Services LLC (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

Sponsor Center