Hurricane Milton could cause as much as $175 billion in damage

Hurricane Milton, with its potential to be a once-in-a-century event, could cause over $50 billion in damage, with worst-case scenarios reaching up to $175 billion, according to top Wall Street analysts.

This would add to the devastation already caused by Hurricane Helene, possibly setting new records for destruction.

Jefferies equity analyst Yaron Kinar and others noted in a report, "While it's still early to estimate insured losses, a major hurricane hitting one of Florida’s most populated areas could lead to a mid-double-digit billion-dollar loss. Some estimate that a 1-in-100-year event could result in $175 billion in losses if the storm hits the Tampa region, and $70 billion if it strikes the Fort Myers area."

The ultimate impact is difficult to predict and depends on where and when the hurricane makes landfall, with a strike closer to Fort Myers likely being less costly.

For a historical reference, analysts can look back to Hurricane Ian, which struck near Fort Myers two years ago as a Category 4 storm, causing more than $50 billion in damage. Ian was considered a 1-in-20-year event.

"If Milton’s current trajectory through the more developed Tampa region holds, the potential losses could be even higher," Kinar added.

Milton is also currently a Category 4 hurricane, though it may weaken before reaching land.

Wells Fargo analysts mentioned that the market is already pricing in a potential loss exceeding $50 billion, greater than that of Hurricane Ian. Their estimates range widely, from $10 billion to $100 billion in possible damage.

The region is already reeling from the impact of Hurricane Helene, which struck 12 days ago. Moody's estimated on Tuesday that Helene caused around $11 billion in damage, with the National Flood Insurance Program likely facing losses near $2 billion.

Moody's analysts have not yet provided damage estimates for Hurricane Milton.