Hurricane Irene’s impact on the East Coast of the U.S., although not as severe as expected, will certainly have a substantial affect on insurers. Even so, reinsurance companies in Europe appear to have brushed the storm off, with shares rising 3% on Monday at the world’s top three reinsurers.
Reuters reported that Munich Re, Swiss Re and Hannover Re all saw their shares go up in Monday morning trading as analysts said they did not see a need to change 2011 estimates based on Irene-caused losses.
Before the hurricane hit, cat bonds, as they are known, were actively traded, according to a Wall Street Journal report. The most active were, according to the report, those issued by Johnston Re Ltd. that provided coverage to the North Carolina Joint Underwriting Association and the North Carolina Insurance Underwriting Association; both are insurers of last resort in the state.