USA: Pulls the hurricane of Florence, investors sell out the shares of insurance companies

Hurricanes, before they reached the land, always caused Wall Street shares' share prices and increases in Wall Street for companies selling building materials or portable power generators. This is the case now when a powerful Florence hurricane is coming.

The Associated Press agency notes that when such a huge hurricane hit the central part of the East Coast of the US, Texas Instruments has just launched the first transistor radio (1954, hurricane Hazel). Since then, the region has been dynamically developing, so the potential destruction that Florence may cause is much greater.

AP indicates that forecasting where the hurricane hits and with what force has always been difficult and has a long history of false alarms. But the likelihood that Florence will hit both of Carolina and the neighboring states means that the sale of shares in insurance and reinsurance companies continues on Wall Street.

Analysts from Morgan Stanley, Kai Pan and Michael Phillips, point out that insurers "are still aware of the significant losses caused by Hurricanes Harvey, Irma and Maria in 2017".

AP points out that insurers naturally accumulate reserves and insure their potential losses, taking into account the destructive power of hurricanes. On the other hand, companies that help people survive hurricane attacks or clean up later, have a week of exceptional gains on the stock exchange, thanks to Florence.

The US National Hurricane Center (NHC) reported that Florence is now in the fourth category on the Saffir-Simpson five-point scale, but it is possible that it will soon become the highest category hurricane and the US coast may strike on Thursday with wind speeds of over 250 km / h. Currently, Florence is located about 640 km south of Bermuda, about 1455 km from Cape Fear in North Carolina.