Powerful Hurricane Isabel is bearing down on the East Coast, and insurance companies are feeling her wrath.
Fearful that the Category 4 storm could cause billions in damage, investors have blown down prices today: Allstate (NYSE:ALL), American International Group (NYSE:AIG), Chubb (NYSE:CB), Travelers (NYSE:TAP.A), and others fell about 2% in afternoon trading. If Isabel approaches heavily populated areas, it could get worse.
Foolish investors, however, should not be blown away by this news. Catastrophic events and big payouts are parts of an insurance company's way of life, and there's no avoiding them. If you've done your homework and trust management has done a good job with its risk management measures, you can rest easy about your stock... and concentrate on getting out of the storm's way instead.
