NEW YORK, March 28 (Reuters) - Most property and casualty insurance companies and reinsurers should be avoided by investors during the June through November hurricane season, according to a report in Barron's financial newspaper.
Investors lulled into a false sense of confidence by last year's quiet hurricane season must be aware that a big storm this year could significantly hit the bottom line of many property and casualty insurers, the report said.
Insurers such as Progressive Corp, which writes a lot of policies covering boats, could also take a hit.
Some insurance brokers, which sell policies for underwriters on commission without assuming coverage risk, were the notable exceptions mentioned in the report.
It cited Marsh & McLennan, AON Corp and Markel Corp as worthy of investor attention even during the volatile storm season.
An analyst cited in the report has one-year share price targets of $55 for AON, $32 for Marsh & McLennan, and $450 for Markel, which is more diversified and deals in exotic insurance lines with little competition.
AON shares closed at $42.58 on Friday, while Marsh shares closed at $24.58 and Markel closed at $371.88, all on the New York Stock Exchange.
(Reporting by Bill Berkrot; Editing by Jan Paschal) Keywords: INSURERS/HURRICANES (bill.berkrot@thomsonreuters.com; +1 646 223-6030; Reuters Messaging: bill.berkrot.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Investors lulled into a false sense of confidence by last year's quiet hurricane season must be aware that a big storm this year could significantly hit the bottom line of many property and casualty insurers, the report said.
Insurers such as Progressive Corp, which writes a lot of policies covering boats, could also take a hit.
Some insurance brokers, which sell policies for underwriters on commission without assuming coverage risk, were the notable exceptions mentioned in the report.
It cited Marsh & McLennan, AON Corp and Markel Corp as worthy of investor attention even during the volatile storm season.
An analyst cited in the report has one-year share price targets of $55 for AON, $32 for Marsh & McLennan, and $450 for Markel, which is more diversified and deals in exotic insurance lines with little competition.
AON shares closed at $42.58 on Friday, while Marsh shares closed at $24.58 and Markel closed at $371.88, all on the New York Stock Exchange.
(Reporting by Bill Berkrot; Editing by Jan Paschal) Keywords: INSURERS/HURRICANES (bill.berkrot@thomsonreuters.com; +1 646 223-6030; Reuters Messaging: bill.berkrot.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.