The S&P 500’s top losers on September 5, 2017, were:
Everest Re Group
Everest Re Group, which provides reinsurance and insurance products, was the S&P 500’s top loser on September 5. Everest Re Group fell on Tuesday amid concerns that Hurricane Irma could hit Florida.
Insurance providers fell in August amid devastating floods caused by Hurricane Harvey. However, the damage caused by Hurricane Harvey isn’t expected to have a huge impact on top insurers’ financial strength due to their excess capital. Their capital can withstand the claims from Hurricane Harvey. New warnings about Hurricane Irma are expected to pressure the insurance industry. According to reports, Hurricane Irma is a Category 5 storm. It’s growing to be one of the strongest storms ever recorded in the Atlantic Ocean.
The reports increased the selling pressure for Everest Re Group on Tuesday and dragged the stock to the lowest levels since February 2017. Similar selling pressure was observed in Brighthouse Financial (BHF) after the reports about Hurricane Irma. Brighthouse Financial is a major annuity and life insurance provider in the US. Brighthouse Financial owns total assets of $220 billion and ~2.7 million insurance policies.
On September 5, Everest Re Group fell 6.9% and closed the day at $231.19. Brighthouse Financial fell 5.9% to $54.08 on Tuesday.