News: Generac Shares Surge Amid Hurricane Milton's Strengthening
Generac Holdings Reports Surge
Shares of backup power generation company Generac Holdings surged more than 7% on Monday as Hurricane Milton rapidly strengthened into a Category 5 storm. The storm is forecast to move north of the Yucatan Peninsula on Monday and Tuesday before crossing the Gulf of Mexico to approach the west coast of Florida by Wednesday, according to the National Hurricane Center.
Storm Impact on Insurance Stocks
Tampa Bay could face a storm surge of between 8 feet and 12 feet, according to forecasters. Generac hit an intraday high of $174.08, up about 8.7% over Friday’s close. The power generation company also hit a new 52-week high. Meanwhile, insurance stocks that have weather catastrophe exposure are falling on potential insured losses tied to Hurricane Milton. Allstate, Travelers, and Chubb saw their shares fall more than 3%, while Progressive and AIG all declined more than 1%.
- Universal Insurance, based in Fort Lauderdale, Florida, plunged more than 15% due to heightened hurricane risks.
- Experts forecast potential sharp reductions in fourth-quarter earnings for property and casualty insurance underwriters and reinsurers.
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