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NEW YORK (TheStreet) -- Losses from Hurricane Paula are likely to be less than $200 million, according to a report by EQECAT.

Damage would be mostly from flooding due to the storm, which is quickly weakening as it approaches Cuba, where it should hit some time on Thursday.

Luckily for insurers, Hurricane Paula is likely to spare Florida, according to reports by the NOAA. The agency says that Paula could hit southern Florida or the keys, but is likely to steer clear of the mainland.

So far property and casualty insurers such as Allstate (Stock Quote: ALL), Travelers (Stock Quote: TRV) and Chubb (Stock Quote: CB) have made off without substantial losses from hurricanes this season. These insurers are likely to use the extra capital to make acquisitions or buybacks next year.

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