Flood disruptions could cause a business’s stock to drop significantly over the succeeding 12 months, reflecting investors’ shaken confidence in the company’s managerial decision-making, according to a new study commissioned by FM Global.
The study, conducted by analytics advisory group Pentland Analytics, examined 71 of the world’s largest publicly traded companies. All companies in the study reported financial damage from a major flood event in recent years. Twelve months after those flood losses, the companies’ shareholder value had declined by an average of 5%, equivalent to a collective $82 billion.
You’ve reached your limit – Register for free now for unlimited access
To read the full story, and get unlimited access to Insurance Business website content, just register for free now. GET STARTED HERE
Already a website member? Log in below.