Reinsurance News
Losses
News on catastrophe and man-made losses that impact or could impact the reinsurance industry and reinsurers around the globe.
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
LA wildfire insured losses estimated between $20–$30bn: Gallagher Re
17th January 2025
Gallagher Re has revised its insured loss estimates for the Southern California wildfires to a range of $20 billion to $30 billion, with the portion anticipated to be ceded to reinsurance potentially reaching the mid-to-high single-digit billions. Although the Palisades and Eaton wildfires in Los Angeles are now expected to rank ... Read the full article
CoreLogic pegs LA wildfire insured loss at $35bn to $45bn
16th January 2025
Catastrophe risk modeller CoreLogic has estimated that residential and commercial insurance industry losses for the ongoing Eaton and Palisades Fires in Los Angeles, California, will fall between $35 billion and $45 billion. With the fires in Eaton and Palisades still burning as of Thursday afternoon, CoreLogic's estimated insured loss range is ... Read the full article
Lloyd’s unlikely to have much direct insurance exposure to California wildfires
16th January 2025
According to a new report from Alpha Insurance Analysts Limited, Lloyd’s is unlikely to have much direct insurance exposure to the California wildfires, other than through some specialist high value homes property binders. As per new estimates, the LA wildfires are set to cause economic losses as high as $275 billion ... Read the full article
Global reinsurer profitability to remain strong in 2025 despite price reductions, says Fitch
15th January 2025
Fitch Ratings, a provider of credit ratings, research, and risk analysis, has forecasted that global reinsurers' profitability will remain strong in 2025, despite lower risk-adjusted prices for most business lines during the January 1st reinsurance contract renewals. These price reductions are attributed to an abundance of capital in the market and ... Read the full article
State Farm reports over 6,700 claims from LA wildfires
15th January 2025
Auto and homeowners insurer State Farm has received more than 6,700 home and auto claims, as of the morning of January 14th, 2025, from damages related to the recent wildfires in Los Angeles, California. State Farm remains the largest insurer group in the State of California, serving more than 8 million ... Read the full article
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
NFIP’s Helene loss nears lower layer of its traditional reinsurance at $6.75bn
14th January 2025
The U.S. Federal Emergency Management Agency (FEMA) has raised its estimate for National Flood Insurance Program (NFIP) losses from hurricane Helene to $6.75 billion, which is near the lower layer of its 2024 traditional reinsurance coverage, as reported by our insurance-linked securities (ILS) focused sister publication, Artemis. Back in November, ... 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
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