P insurance stocks rallied on Friday after catastrophe modeling

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Morgan analyst Sarah DeWitt pointed out, Ike was a weaker storm and did not stall like Harvey. Ike was, however, significantly larger with hurricane force winds that extended 120 miles from the centre, and tropical storm force winds that extended 250 miles.DeWitt estimates that Harvey could result in losses that amount to slightly less than a quarter worth of earnings for much of commercial (re)insurance industry. The analyst said that would make it an earnings event, not one requiring additional capital to be raised.Property and casualty (re)insurers with the most exposure include Validus Holdings Ltd., RenaissanceRe Holdings Ltd., Everest Re Group Ltd., XL Group Ltd., Arch Capital Group Ltd., Travelers Companies Inc., Chubb Ltd., Allstate Corp., and Progressive Corp.P insurance stocks rallied on Friday after catastrophe modeling firms predicted insured losses could be in low single digits.this was based on wind only losses; Harvey appears to be more of a flood event and we think the loss estimates are misunderstood, the analyst said.Flooding is not covered under homeowner insurance, however it is covered under commercial insurance, and could therefore result in meaningful losses for the commercial reinsurers and insurers.

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