Generac shares surge while insurance stocks decline amidst Hurricane Milton's intensification.
- Hurricane Milton has rapidly strengthened into Category 4 storm.
- According to the National Hurricane Center, Milton is predicted to reach Florida by Wednesday.
- Forecasters predict that Tampa Bay may experience a storm surge ranging from eight to twelve feet.
On Monday, the stock price of a backup power generation company increased by more than 7% due to Hurricane Milton's rapid intensification into a Category 4 storm.
According to the National Hurricane Center, Milton is expected to move north of the Yucatan Peninsula on Monday and Tuesday before crossing the Gulf of Mexico and reaching Florida by Wednesday. Tampa Bay may experience a storm surge of eight to 12 feet, as forecasters predict.
Meanwhile, insurance stocks that are exposed to catastrophe risks due to Hurricane Milton are experiencing potential insured losses, causing their shares to fall. Allstate, Travelers, and saw their shares decline more than 3%, while Progressive and all experienced a decline of more than 1%.
The catastrophe-prone carrier with Gulf Coast exposure, Universal Insurance, based in Fort. Lauderdale, saw its stock price drop more than 20% due to heightened hurricane risks.
This is a developing story. Please check back for updates.
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