Hurricane Idalia wreaked havoc along Florida's Gulf Coast before turning into a tropical storm in Georgia and making its way into the open water of the Atlantic Ocean.
Despite causing significant disruptions, its financial toll is expected to be less dire than Hurricane Ian. In 2022, Ian caused over $112 billion in damages.
After making landfall on Wednesday, Idalia's high winds knocked out power for 250,000 Florida residents, according to Gov. Ron DeSantis.
At least three deaths were reported and attributed to storm conditions.
UBS issued a note on Tuesday, telling investors that Hurricane Idalia estimates encompass a wide range of potential insured losses: about $4.05 billion at the low end to as much as $25.6 billion at the upper end, depending on Idalia's final trajectory and impact.
Given that Idalia made landfall in a less populated region southeast of Tallahassee, reinsurers may not have to absorb a substantial chunk of the losses. And damages may not come in on the higher end of UBS estimates.
UBS also suggested that the storm could have implications for reinsurance pricing, keeping them "firm" at the next renewals in 2024.
Hurricane Impact On Utility & Insurance Stocks
- Shares of NextEra Energy Inc
(NEE ) - owner of Florida's largest utility - inched up 0.58% on Thursday - Duke Energy Corp
(DUK ) slipped 0.5%. - Universal Insurance Holdings
(UVE ) slipped 1.07% - Allstate Corp
(ALL ) fell 1.6% - American International Group Inc
(AIG ) gained 0.05%. - Generac Holdings Inc
(GNRC ) gained 0.72%.
