Hurricane Milton is making waves in the insurance industry. Though it's lost some steam, dropping to a Category 4 storm, experts warn that it's still a major threat. The hurricane is expected to hit Florida's west coast sometime on Wednesday or Thursday. Analyst Paul Newsome from Piper Sandler says this could be one of the biggest insurance events ever. Why? Because many insurers have some kind of reinsurance exposure.

Florida may be better prepared than it was during Hurricane Ian, but there are more people living in coastal areas now. So, the potential for damage is higher. Insurance stocks usually take a hit when a hurricane hits and then bounce back once the damage is known. Stocks with the most exposure, like Allstate, American International Group, Chubb, Heritage Insurance, Progressive, and Universal Insurance Holdings, might feel the impact the most.

Some of these companies have seen big gains this year. Allstate's shares are up 31%, and Chubb's are up 23.5%. Progressive has even rallied over 56%. But, will these gains hold after Hurricane Milton? Usually, insurance stocks return to normal after a few days, once the extent of the damage is clear.

Hurricane Milton: Which Insurance Stocks Are in the Eye of the Storm?

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