Edward Rust Jr., of State Farm speaks on MAJOR ECONOMIC UPHEAVAL RESULTING FROM HURRICANES
“The big news of ’05 wasn’t Katrina, it was Rita,” said Edward Rust Jr., chairman and CEO of State Farm, at the Property and Casualty conference. Devastating as it was, Hurricane Rita could have been much worse, Rust said. It could have caused a major economic upheaval.
“If Rita had moved 30 miles towards Galveston, it would have been a major hit to the economy,” Rust said. “Not only from an insurance perspective, but also in terms of the petroleum industry and shipping. That sort of storm hits your equity portfolio, your investment in municipal bonds.”