Small-cap insurance stocks have taken a beating over the past two quarters as investors have fretted about these companies' exposure to hurricanes Harvey, Irma and Maria.
Some estimates have put the total value of losses from the hurricane season at over $100 billion, making it one of the most costly disaster seasons in decades. And while it will be some time before the final loss figures are known, companies have already started reserving billions for potential claims.
Berkshire Hathaway's third-quarter report contained a $2.8 billion provision for losses related to hurricanes Harvey, Irma, and Maria, as well as the earthquakes in Mexico. Meanwhile, AIG reported pre-tax catastrophe losses of about $3 billion in the third quarter mainly related to hurricanes Harvey, Irma and...
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