Exchange traded funds tracking the insurance sector fell Thursday as the East Coast braced for Hurricane Irene.
The “potentially devastating” Category 3 storm is expected to carve a path along the coast and reach the Northeast this weekend.
New York Mayor Michael Bloomberg on Thursday warned residents to be prepared to evacuate.
Shares of insurers Alltate (NYSE: ALL) and Chubb (NYSE: CB) were down 3% on Thursday.
Insurers could be facing trillions of dollars in losses as Hurricane Irene moves north towards New York, TheStreet reported Thursday. New York has over $2.3 trillion of insured coastal property, according to the report.
“The hurricane is an excuse not to be buying the property and casualty insurers,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott, told Bloomberg. “Fundamentally speaking, these names are prepared for reasonable damages.”
ETFs that invest in the insurance sector include:
- SPDR KBW Insurance (NYSEArca: KIE)
- iShares Dow Jones U.S. Insurance (NYSEArca: IAK)
- PowerShares Dynamic Insurance (NYSEArca: PIC)
SPDR KBW Insurance
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.