Top Reinsurance Stocks Surging with Hurricane Ian

Investors may want to pay close attention to reinsurance stocks.

Especially with Hurricane Ian becoming a beast of a storm.

“Wells Fargo analyst Elyse Greenspan writes Wednesday that expected claims from Hurricane Ian have been projected to range from $10 billion to $30 billion, depending on where it hits. If it blows through Tampa, losses will be high, but a path through Florida’s Panhandle would leave loses at the lower end of the range,” says Barron’s.

Some of the top stocks surging with Ian include Reinsurer Arch Capital Group (ACGL), which is up $1.64 on the day.  Everest Re Group (RE) is up $7.63, as RenaissanceRe Holdings (RNR) tacks on another $3.26 on the hurricane news.

Most have a history of running higher on hurricane season.

Look at ACGL, for example.  In 2020, it ran from about $27 to $32 between July and September 2022.  In 2021, it ran from about $40 to $42 over the same time frame.  While the gains aren’t huge, they have become far more predictable with hurricanes.