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.
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
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