Investing.com - Insurance companies were down across the board on Monday, over concerns that big policy payouts will impact these companies in the coming months due to the damages caused by Hurricane Harvey in Texas and Louisiana.
Hurricane Harvey made landfall in Texas over the weekend, and while the storm has since been downgraded, torrential rainfall and rising floodwaters continue to threaten the region with rescue efforts currently undergoing. When it comes to the insurance companies, the likes of The Travelers Companies Inc (NYSE:TRV), Infinity Property & Casualty (NASDAQ:IPCC), Allstate Corporation (NYSE:ALL), and Progressive Corporation (NYSE:PGR), among others, were all experiencing losses.
Rescue efforts are ongoing in the region as quick rising flood waters trapped people. Texas officials said that at least eight people have died, and the catastrophic flooding is expected to worsen.
While it is way too early to determine the cost of the storm, Chuck Watson, a disaster modeler with Enki Research, told Bloomberg that total costs could mount to $30 billion when including the impact on the labor force and infrastructure elements that support the region's energy sector.