Reinsurance News
Losses
News on catastrophe and man-made losses that impact or could impact the reinsurance industry and reinsurers around the globe.
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
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
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