Insurers could be facing another third quarter of costly casualty losses in the wake of Hurricane Florence lashing North Carolina and the surrounding region.
While it's too early to determine the hurricane's precise impact, based on previous storms in the region it could result in up to $20.5 billion in losses, according to risk modeling company RMS.
Allstate, Travelers, Progressive and other insurers will report earnings in a few weeks. Much like a year ago, they could all see their bottom lines weighed down by a surge in hurricane season losses.
"Given the timing of Hurricane Florence, any potential downward revisions to earnings estimates for companies in the insurance industry may not occur until late September or early October," wrote John Butters, senior earning analyst at Fact Set.
Last year, the S&P 500 Insurance sector suffered a 68 percent decline in earnings for the third quarter after Hurricanes Harvey and Irma, Butters said. The 2017 Atlantic hurricane season, which included Harvey and Irma, caused more than $220 billion in damages and cost insurers more than $80 billion.