Back-to-back Hurricanes have smashed insurance company stocks. KIE fell over 10% since the August high to test its 200-day simple moving average support.
Insurance company shares may be punished more than they should be; Insurers are well-capitalized against hurricane effects.
Insurers should be well capitalized to meet requirements since they should have been prepared before hand; CFRA estimates industry has a $300 billion cash cushion.
To put in perspective, Harvey damages are estimated at $10 billion to $15 billion, with worst case scenario at $20 billion.