According to the Securities Times app, Usa property insurance stocks suffered a heavy blow on Monday, with Hurricane Milton intensifying into a category four storm and approaching the west coast of Florida, marking another costly disaster for the property insurance industry this year. Insurance companies are expected to face billions of dollars in disaster-related claims from the devastating hurricane season.

Catastrophic losses refer to significant financial losses suffered by insurance companies due to large-scale natural or man-made disasters. These events have escalated in recent years, severely impacting insurance company profits due to significant expenditures associated with widespread property damage, business interruption, and liability claims.

In 2024, the Usa experienced several major hurricanes, including Hurricane Debbie which struck Florida in August, Hurricane Francine landing in Louisiana in September, and Hurricane Helen which recently hit Florida in the same month.

The Standard & Poor's Insurance Select Industry Index closed down 3.1% on Monday.

Losses are escalating.

Severe and frequent natural disasters have exacerbated the trend of the industry withdrawing from high-risk areas, particularly in Florida. Reinsurance costs in the state have also sharply risen, increasing operational costs for insurance companies.

Running Point Capital Advisors partner and Chief Investment Officer Michael Ashley Schulman said, "Investors are not only considering the short-term impact on company profits, but also the long-term impact of weather variations and seasonal losses on operations."

Schulman said, "The company's credit rating has not been significantly affected in the short term. However, if extreme weather forces people to leave, the long-term revenue models of these companies may be affected."

On Monday, Florida is preparing for its largest evacuation since 2017, mainly due to Hurricane "Milton" closely following the path of the destructive Hurricane "Helen," strengthening as it moves from the Gulf of Mexico to the west coast, and potentially further impacting areas already devastated by "Helen."

In the state, larger businesses like Heritage Insurance (HRTG.US) saw a 23.38% drop in stock price on Monday. Universal Insurance Holdings (UVE.US) and HCI Group (HCI.US) also fell by 19.52% and 17.26% respectively.

Industry leader The Travelers Companies (TRV.US) fell by 4%, Allstate (ALL.US) and Assurant (AIZ.US) both declined by 5% and 5.5% respectively.

Meanwhile, as hurricanes may cause power outages, investors are betting on increased demand for Generac's generators to power homes during electrical disruptions. This led to Generac (GNRC.US) stock price surging over 8% on Monday.

Insurance broker Aon plc (AON.US) stated in a report on Sunday evening that the risk of life-threatening storm surges and destructive high winds will increase in parts of the western coast of the Florida peninsula starting from Tuesday night or Wednesday morning.

The U.S. hurricane season is expected to end on November 30th. The forecast indicates that due to unusually warm sea surface temperatures in the tropical Atlantic, coupled with the La Nina weather pattern, this year's hurricane activity is higher than normal levels.

Gallagher Re stated in a report in July that the insurance industry must be prepared for the challenges that may arise in the second half of the year. These conditions, combined with the impacts of climate change, have fueled more unpredictable and extreme events in 2024.