Do Catastrophic Events Make Insurers More Attractive Investments?

By Jessica Alling – May 24, 2013 at 12:46PM

NYSE: TRV

Travelers Companies

Market Cap

$49B

Today's Change

(0.02%) $0.05

Current Price

$214.32

Price as of April 23, 2024, 4:00 p.m. ET

After this week's tornado outside of Oklahoma City, some investors may be thinking that the hit to insurers will be too much. But they might want to reconsider.

After Monday's tornado in Oklahoma, Allstate (ALL -0.07%), Progressive Insurance (PGR 0.48%), and Traveler's Companies (TRV 0.02%) all fell in the market. Along with AIG (AIG -0.04%), these insurance companies represent four of the top 10 providers for property and casualty insurance in the U.S. But when disaster strikes, should investors flee, or hunker down and wait it out?

In the video below, Motley Fool contributor Jessica Alling discusses the effect of catastrophic losses, what the insurance companies are doing about them, and how investors should feel about insurers going forward.

Fool contributor Jessica Alling has no position in any stocks mentioned -- you can contact her here. The Motley Fool recommends American International Group and Progressive. The Motley Fool owns shares of American International Group and has the following options: Long Jan 2014 $25 Calls on American International Group.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.