The insurance industry is bracing for a likely tough hurricane season as Beryl struck the coast of Texas early Monday. Wall Street analysts identified a number of insurance stocks with the most at risk from future dangerous storms. Over the past few days, Beryl cut a deadly path through parts of the Caribbean and Mexico before sweeping into Texas with heavy rains and powerful winds.
Stocks with the most exposure Insurance stocks typically fall as a hurricane makes landfall, and often rebound after the size of the insured losses become known. Meanwhile, a dangerous storm season often raises policy prices at the start of the following year amid a rise in demand. "Typically, if a weather event is large, the stocks with the most exposure react the most," Paul Newsome, Piper Sandler's insurance analyst, said in a note.