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Investing.com – Munich Re (OTC:MURGY) and Swiss Re (OTC:SSREY) stocks (SIX:SRENH) traded lower Monday as Hurricane Ida sweeps through New Orleans and leads to worries that two of the world’s largest reinsurers may have to cough up billions in claims.
Munich Re traded 1.2% lower in Frankfurt and Swiss Re 1% down in Zurich.
Ida made landfall near New Orleans Sunday as a Category 4 hurricane, the strongest to hit the area since Hurricane Katrina in 2005. It has brought strong winds and rains with it.
New Orleans is currently without power after it was hit with “catastrophic transmission damage,” the city office said in a tweet Sunday.
Data from CoreLogic suggested that nearly 1 million homes along the Gulf Coast between Alabama and Louisiana were at risk of damage. In New Orleans alone, the replacement cost value of those homes totaled nearly $100 billion, CoreLogic said.
The Hurricane has left at least one dead and 1 million without power in Louisiana, according to a CNN report.
The CNN report said Ida will now move as a category 1 storm into Mississippi, Tennessee and West Virginia, and there could be significant rainfall still.
