Property and casualty insurance stocks slump on Hurricane Miltonrelated fears
Another catastrophe adds to insurers39; Florida woes
Analysts say the full extent of hurricane season damage still unknown

Reuters U.S. property and casualty insurance stocks tanked on Monday after Hurricane Milton intensified into a category 4 storm on its path towards Florida39;s western coast, marking yet another costly disaster for the industry to cover this year.

Insurers are expected to face catastropherelated claims for billions of dollars from a devastating hurricane season. Catastrophe losses refer to a significant financial hit that insurance companies incur due to largescale natural or manmade disasters.

These events have intensified over the past few years and have significantly hurt profits due to substantial payouts tied to widespread property damage, business interruptions and liability claims.

The U.S. has grappled with multiple major hurricanes in 2024, including Hurricane Debby striking Florida in August, Hurricane Francine which made landfall in Louisiana in September, and more recently Hurricane Helene that hit Florida in the same month.

The SP Insurance Select Industry index was last down 3.1 on Monday.

MOUNTING LOSSES

Severe and frequent natural disasters have exacerbated the industry39;s retreat from highrisk areas, particularly Florida. The costs of reinsurance have also risen sharply in the state, making it more expensive for insurers to operate.

Investors…