Falling shares in European reinsurers footing the bill for Hurricane Sandy offered a window of opportunity for short sellers on Monday.

Sandy battered the US East Coast on Monday and Tuesday, closing stock exchanges, grounding flights and flooding power grids, bringing chaos to millions and leaving New York at a virtual standstill. Many US insurance firms are themselves insured with large European reinsurers, including firms that are members of Lloyds of London, the largest reinsurance market in the world.