Investing
P&C Insurers Face Above-Normal Tornado Expectations In 2012 (ALL, PGR, BRK.B)
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Before you hit the panic button too hard, ask yourself just how accurate you think the weatherman is. All cynical thinking aside, AccuWeather.com is calling for an above-normal year of tornado activity in 2012. This is on the heels of what was nearly a record year in 2011. In 2011, there were 1,709 tornadoes and the record is said to be 1,817 back in 2004.
There is an obvious observation… Living in a trailer might bring on some added risks in 2012. So far the report is not causing any panic in the property and casualty insurers:
Allstate Corporation (NYSE: ALL) is flat at $31.39 against a 52-week trading range of $22.27 to $34.40. Berkshire Hathaway Inc. (NYSE: BRK.B) is even up modestly and it has exposure on insurance and on reinsurance. Progressive Corporation (NYSE: PGR) is also up 0.4% at $21.52.
Maybe the obvious answer is that ‘above average’ means that insurers will get to charge more than normal as well.
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