Reinsurance News
Losses
News on catastrophe and man-made losses that impact or could impact the reinsurance industry and reinsurers around the globe.
CatIQ lifts Jasper wildfire industry loss estimate to CAD 1.2bn
28th January 2025
Catastrophe Indices and Quantification Inc. (CatIQ) has released its fourth industry loss estimate for the wildfire that impacted Jasper, Alberta, from July 22 to August 17, 2024, now totalling CAD 1.23 billion. This updated estimate marks an increase from the initial figure of over CAD 880 million in August 2024 ... Read the full article
LA wildfires to cause minimal principal cat bond losses, issuance unaffected
27th January 2025
Fitch Ratings has noted that the Los Angeles wildfires will cause certain catastrophe bonds to experience partial principal losses, though these are not anticipated to impede issuance. According to a new report from the rating agency, while roughly 12% of the $50 billion cat-bond market is currently exposed to wildfire risk, ... Read the full article
LA wildfires likely to heavily impact insurance rates: S&P
24th January 2025
According to a recent report from S&P Global Ratings, the ongoing Los Angeles wildfires could significantly impact homeowners, with insurance rates in the region likely to be heavily impacted. S&P predicts that, following the event, property insurers will likely increase rates and/or limit coverage options. These measures may extend beyond California ... Read the full article
Assurant expects ~$50m in nat cat losses for Q4’24 largely driven by Hurricane Milton
24th January 2025
US specialty insurance group Assurant expects to record approximately $50 million pre-tax, or $40 million after-tax in losses from natural catastrophes for the fourth quarter of 2024. This estimate is more favourable than the preliminary figures shared during its third-quarter 2024 earnings call in November. The reported losses primarily stem from lender-placed ... Read the full article
Insured California wildfire losses to near or exceed $40bn, poll suggests
23rd January 2025
A recent Reinsurance News poll sought insights from industry experts and observers regarding the estimated insured loss from the devastating Eaton and Palisades wildfires in Los Angeles, encompassing claims handled by the California FAIR Plan. Of the hundreds of responses to our recent poll, 42% believe that insured losses related to ... Read the full article
KCC estimates insured loss from LA wildfires at close to $28bn
23rd January 2025
Karen Clark & Company (KCC) has estimated that the insured loss (from privately insured and FAIR plan policies) to residential, commercial, and industrial properties, and autos from the Palisades and Eaton Fires in Los Angeles will be close to $28 billion. This estimate, which is based on the high-resolution KCC US ... Read the full article
LA wildfires may erode over 30% of combined nat cat budgets of Europe’s big four: Fitch
23rd January 2025
At $35 billion, roughly the mid-point of insurance industry loss estimates from the devastating Los Angeles wildfires, Fitch Ratings estimates that 30% of the aggregate natural catastrophe budgets set by Europe's big four reinsurers for 2025 may be eroded. With the two main fires, Palisades and Eaton now 70% and 95% ... Read the full article
Verisk puts LA wildfire insurance industry loss at between $28bn and $35bn
22nd January 2025
Verisk's Extreme Event Solutions division has estimated that insured losses to property from both the Palisades and Eaton Fires in Los Angeles, California, will land between $28 billion and $35 billion, driven by losses to residential risks. As containment efforts continue for the two largest fires to burn across Southern California ... Read the full article
Aon flags 60% protection gap as nat cat losses reach $368bn in 2024
22nd January 2025
According to Aon, global insurance losses in 2024 were 54% higher than the 21st-century average, covering $145 billion of the $368 billion in natural disaster damages, leaving a protection gap of $223 billion, or 60%. The $368 billion in economic losses caused by natural disasters in 2024, driven primarily by hurricanes ... Read the full article
Munich Re execs confident on €6bn profit target despite LA wildfire impact: Reports
22nd January 2025
Executives at Munich Re, one of the world's largest reinsurance companies, confirmed recently that although the Los Angeles wildfires will be a major loss for the firm, it will remain below its provision for natural catastrophe events, with the reinsurer confident of achieving its net profit target of €6 billion ... Read the full article
Reinsurers’ 10-15% share of LA wildfire industry loss not enough to alter pricing trajectory: Evercore
21st January 2025
Analysts at Evercore ISI have increased their insured loss base case for the ongoing wildfires in Los Angeles to a range of $25 billion to $30 billion, stating that although an industry loss of this level will hit reinsurers, it's not enough to alter the trajectory of reinsurance pricing with ... Read the full article
Annual insured nat cat losses of ~$150bn becoming the ‘new normal’: Gallagher Re
21st January 2025
With the annual average loss from natural catastrophes between 2017 and 2024 costing insurers $146 billion, Gallagher Re has suggested the 'new normal' for annual insured losses is approaching $150 billion. As per the broker's new Natural Catastrophe and Climate Report, the estimated total direct economic costs from global natural perils ... Read the full article
LA fires: Average insured claim estimated at $1.9m with 17,027 structures destroyed or damaged
20th January 2025
The wildfires still burning in parts of the Palisades and Eaton areas of Los Angeles, California, have now damaged or destroyed more than 17,000 structures, with an average insured loss per structure of an estimated $1.9 million, based on the mid-point of initial insured loss estimates from catastrophe risk modellers. As ... Read the full article
LA wildfires to drive insured losses of up to $30bn, says Moody’s RMS Event Response
20th January 2025
Catastrophe risk modeller Moody's RMS Event Response has estimated insured losses from the Los Angeles fires will be between $20 billion and $30 billion but warns that significant uncertainty remains as some of the fires are ongoing. Moody's RMS released this preliminary estimate on Friday evening, when the Palisades Fire was ... Read the full article
CatIQ estimates CAD 991m in insured damage from Toronto/Ontario July flash flooding
17th January 2025
Catastrophe Indices and Quantification Inc. (CatIQ) has disclosed its latest industry loss estimate for the flash flooding in southern Ontario between July 15-16, 2024, estimating CAD 991 million in insured damage. During July 15-16, 2024, southern Ontario and Toronto, experienced severe flash flooding due to heavy rainfall exceeding 120mm in some ... Read the full article
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