Hurricane Milton threatens 235K commercial properties, Moody's estimates

Published On Oct 9, 2024, 12:38 PM

Hurricane Milton, currently a Category 4 storm, is projected to hit Florida's west coast, affecting more than 235,000 commercial properties valued at approximately $1.1 trillion. Moody's estimates that these properties face significant risk of damage due to expected wind speeds exceeding 50 mph. The anticipated destruction could lead to insured losses ranging from $10 billion to $20 billion. The storm is also expected to cause severe flooding and storm surges along the coast, with preparations for power outages and flooding being emphasized as urgent.

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Stock Forecasts

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Due to Hurricane Milton's potential to cause catastrophic damage to commercial properties in Florida, real estate firms and property insurance companies may face significant financial strain, potentially leading to declines in their stock prices. Companies involved in disaster recovery and construction might see increased demand for their services as rebuilding efforts begin.

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Insurance companies such as Allstate Insurance (ALL) and Progressive Corp (PGR) might deal with substantial claims due to the projected insured losses, which could negatively affect their stock performance in the short term as market sentiment shifts towards the anticipated financial impact of the hurricane.

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