Hurricane Paula May Pound Mexico

Hurricane Paula became the ninth hurricane and the 16th storm of the season.
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New York (

TheStreet

)-- Hurricane Paula became the ninth hurricane and the 16th storm of the 2010 hurricane season.

Paula became a Category 1 Hurricane Tuesday morning off the coast of Honduras. The hurricane is expected to hit parts of Mexico and possibly Cuba, according to the National Oceanic and Atmospheric Administration (NOAA). The storm may strengthen slightly during the next day or two and is expected to continue its northwest course.

Forecasters are unsure where the storm may eventually veer.

Even though there have been several storms this season, very few have made landfall in the U.S. and caused significant damage.

This is good news for property and casualty insurers such as

Allstate

(ALL) - Get Report

,

Travelers

(TRV) - Get Report

and

Chubb

(CB) - Get Report

, which might use the capital that it would have spent on catastrophies for buybacks or acquisitions.

The hurricane season officially ends Nov. 30.

--Written by Maria Woehr in New York.

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