19:12 15Sep2003 Insurance stocks drop as Hurricane Isabel approaches

NEW YORK, Sept 15 (Reuters) - Shares of insurance companies took a hit
on Monday on concerns powerful Hurricane Isabel could cause billions of
dollars in damages if it meets the East Coast of the United States later
this week.
Home and auto insurer Allstate Corp. ALL.N is the publicly traded
insurer with the most exposure to damage caused by Isabel, based on its
coverage in the areas expected to be hit, according to analysts. Its shares
fell as much as 3 percent on Monday to a session low of $34.89.
Isabel, one of the Atlantic's most powerful hurricanes in recent memory,
by midday had weakened only slightly to winds of 140 mph (225 kph) on a path
that could see it hit land around Cape Hatteras, North Carolina, on
Thursday.
A hurricane causing $5 billion in damage, which would be slightly worse
than 1989's Hurricane Hugo, would reduce Allstate's third-quarter earnings
per share by nearly two-thirds, Lehman Brothers analyst Chris Winans wrote
in a Monday research note.
Among other insurers with the heaviest exposure are Progressive Corp.
PGR.N, Travelers Property Casualty Corp. TAPa.N, SAFECO Corp. SAFC.O
and Hartford Financial Services Group Inc. HIG.N.
State Farm, which leads Allstate as the largest home and auto insurer,
does not have a publicly traded stock.
Hurricane Andrew, the most costly hurricane ever, led to $15.5 billion
in insured losses in 1992, or nearly $20 billion in 2002 dollars, according
to the Insurance Information Institute.
But a massive hurricane could be good news for insurers in the long
run, raising demand for insurance and letting insurers hike rates.
"The greater the industry loss, the more positive the potential effect
on property insurance and property reinsurance pricing," Ronald Frank, an
analyst at Smith Barney, wrote in a Monday note.
Shares of Allstate fell 59 cents, or 1.6 percent, to $35.40 in
mid-afternoon trading on the New York Stock Exchange.


Monday, 15 September 2003 19:12:48RTRS [nN1591214 ] {C}ENDS

On Mon, 15 Sep 2003 19:29:46 +0100, "Brendan DJ Murphy"
wrote:


19:12 15Sep2003 Insurance stocks drop as Hurricane Isabel approaches

NEW YORK, Sept 15 (Reuters) - Shares of insurance companies took a hit
on Monday on concerns powerful Hurricane Isabel could cause billions of
dollars in damages if it meets the East Coast of the United States later
this week.
Home and auto insurer Allstate Corp. ALL.N is the publicly traded
insurer with the most exposure to damage caused by Isabel, based on its
coverage in the areas expected to be hit, according to analysts. Its shares
fell as much as 3 percent on Monday to a session low of $34.89.

So if it recurves early and misses the States, there will be a nice
bounce-back in the share price. And whatever happens they will be
volatile (now up to $35.60). Hmmm... I could buy (or sell) them at a
cost of only 5 cents a share. I will be watching the next few NHC
updates with more than the usual amount of interest

--
Dave

On Mon, 15 Sep 2003 19:29:46 +0100, "Brendan DJ Murphy"
wrote:


19:12 15Sep2003 Insurance stocks drop as Hurricane Isabel approaches

NEW YORK, Sept 15 (Reuters) - Shares of insurance companies took a hit
on Monday on concerns powerful Hurricane Isabel could cause billions of
dollars in damages if it meets the East Coast of the United States later
this week.
Home and auto insurer Allstate Corp. ALL.N is the publicly traded
insurer with the most exposure to damage caused by Isabel, based on its
coverage in the areas expected to be hit, according to analysts. Its shares
fell as much as 3 percent on Monday to a session low of $34.89.

Back up to $37 already... exactly where they were before they dropped.
Hehe

--
Dave