Reinsurance News
California wildfires
California wildfire related insurance or reinsurance news and analysis. The California wildfire peril is a key exposure of the re/insurance market and an area where risk capital provides meaningful support to help policyholders recover after a wildfire disaster.
Re/insurance pricing could firm after unexpected wildfire losses: Berenberg
15th January 2025
The severity of the ongoing California wildfires is expected to drive insurance industry losses of more than $20 billion, with some estimates even hitting or exceeding the $40 billion mark, which analysts at investment bank Berenberg believe could cause pricing to firm. In a recent note, Berenberg analysts focus on re/insurers ... Read the full article
LA wildfire insured losses may surpass $30bn, says Morningstar DBRS
15th January 2025
According to analysts at Morningstar DBRS, the wildfires in the Los Angeles area have caused unprecedented property damage, with insured losses potentially surpassing $30 billion, leading to a negative but manageable impact on insurers' credit profiles. The analysts noted in a recent commentary that, with more than 12,000 structures destroyed, the ... Read the full article
Insured losses from LA wildfires likely to exceed $25bn: BMS
15th January 2025
Specialist insurance and reinsurance broker BMS Group has noted that, while it is too early to provide a credible insured loss estimate for the Los Angeles wildfires, the total is likely to exceed $25 billion. In a new report on the matter, Andy Siffert, Senior Vice President and Senior Meteorologist at ... Read the full article
KBW raises LA wildfire insured loss scenarios to between $25bn and $40bn
14th January 2025
With the Palisades Fire now covering more than 23,000 acres and just 14% contained, and the Eaton Fire covering over 14,000 acres and 33% contained, according to California’s Department of Foresty and Fire Protection, analysts at KBW have raised their insured loss scenario estimate range for the Los Angeles wildfires ... Read the full article
Twelve Capital expects insurance stocks to withstand LA wildfire losses
14th January 2025
The ongoing wildfires in Los Angeles are expected to significantly impact the 2025 financial statements, but specialist re/insurance and investment manager Twelve Capital believes that the insurance stocks in its coverage universe have sufficient solvency and earnings capacity to withstand even the highest insured loss estimates. Twelve Capital notes that these ... Read the full article
California wildfires unlikely to affect P&C re/insurer ratings: Fitch
14th January 2025
In a new report, Fitch Ratings has confirmed that even though the Los Angeles wildfires will cause insured losses considerably higher than past events, they are not likely to affect ratings of property and casualty (P&C) insurers and reinsurers. The ratings agency expects insured losses to remain within ratings sensitivities for ... Read the full article
Autonomous lifts LA fire insured loss estimate to $25bn, warns of potential FAIR Plan insolvency
14th January 2025
Analysts at Autonomous have increased their insured loss estimate for the ongoing Los Angeles wildfires by 92% to $25 billion, forecasting a significant loss of up to $8 billion for California's FAIR Plan. As the fires continue to burn and affect over 40,000 acres, with more than 12,000 structures reported to ... Read the full article
Re/insurance industry well capitalized to absorb LA wildfire losses: KBRA
13th January 2025
While the Los Angeles wildfires are anticipated to be a major catastrophe event for the insurance industry, a new report from KBRA has highlighted that the sector is generally well capitalized to absorb the losses, although some individual carriers may be more heavily impacted than others. With industry losses from ... Read the full article
KBW estimates of insurers’ net LA wildfire losses points to reinsurance recoveries
13th January 2025
Forecasting that the ongoing Los Angeles wildfires will drive insurance and reinsurance industry losses of $20 billion, analysts at KBW have estimated net losses from the fires for numerous insurance carriers, based on individual firms' 2023 market share of exposed lines of business, suggesting reinsurance recoveries for some under their ... Read the full article
Insured LA wildfire losses ‘to notably’ exceed $10bn: Gallagher Re
13th January 2025
Steve Bowen, Chief Science Officer at reinsurance broker Gallagher Re, states that the wildfires in Los Angeles County, particularly the Palisades Fire and Eaton Fire, are projected to become some of the most expensive in history, with total aggregated insured losses expected "to notably" exceed the $10 billion mark. The extent ... Read the full article
Analysts expect LA fires to be treated as single event as insured loss estimate rises to $25bn
13th January 2025
Analysts at Evercore ISI have estimated that insurance industry losses from the Los Angeles wildfires will be in the $20 billion to $25 billion range, and also expect the fires to be treated as one event which could help primary carriers reach their reinsurance coverage. The fires continued to burn and ... Read the full article
Billions in insurance losses expected from LA wildfires, Moody’s reports
13th January 2025
Wildfires currently affecting the Los Angeles area are expected to lead to significant financial losses for insurers, according to Moody's Ratings, a provider of credit ratings, research, and risk analysis. As of January 9, 2025, the Palisades and Eaton fires remain uncontained, causing property damage and evacuations. The ... Read the full article
LA wildfires destroy over 10k structures, insured loss seen at ~$20bn
10th January 2025
The Los Angeles County wildfires are still burning and have now destroyed more than 10,000 structures, according to the Cal Fire authority, with insurance industry loss estimates still ranging from $10 billion to $20 billion, or higher if the fires continue to spread. Five fires continue to burn across LA. The ... Read the full article
Mercury expects LA wildfire losses to exceed reinsurance retention limit
10th January 2025
Mercury General Corporation has provided a preliminary assessment of the recent wildfires in Southern California, expecting losses to exceed its reinsurance retention level of $150 million. Since January 7, 2025, extreme wind-driven wildfires have caused widespread destruction across Southern California. The fires are ongoing, and it will take time before Mercury ... Read the full article
California wildfire unpredictability may drive insurers to reconsider risk appetite: AM Best
10th January 2025
The longer-term impact on California's insurance market from the Los Angeles County wildfires may be substantial, as insurers will further re-examine their appetites for wildfire risk as it has become highly unpredictable concerning location, intensity and seasonality, according to a new report from AM Best. The Cal Fire Authority has noted ... Read the full article
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