Insurers including Travelers Cos., Swiss Re AG and Munich Re fell as the U.S. east coast prepared for Hurricane Sandy, which may cost the industry as much as $6.3 billion, according to Kinetic Analysis Corp.
Insurance was the worst-performing industry in the STOXX Europe 600 Index, down 1.6 percent compared with the index’s 0.7 percent decline at 11:32 a.m. in London. Munich Re traded 2.1 percent lower at 121.75 euros, Swiss Re fell 2.6 percent and New York-based Travelers dropped 0.9 percent in European trading.
Claims may be about $3 billion should the winds remain a relatively weak Category 1 storm, Croce said. At that level the losses are unlikely to reach reinsurance limits, meaning claims will be borne by primary insurers, he said.