From CNBC: 2025-01-10 09:32:19

The California wildfires have caused insurers like Allstate, AIG, Chubb, and Travelers to drop in stock value as the fires continue to devastate Los Angeles. JPMorgan estimates insured losses could exceed $20 billion, making this one of the costliest fire events in California history.

The Palisades Fire, the largest of five blazes, has burned over 17,000 acres and destroyed more than 1,000 structures in affluent areas with high property values. Insurers have requested Southern California Edison to preserve evidence related to the wildfires that have swept through Los Angeles.

Reinsurers like Arch Capital Group and RenaissanceRe Holdings have also seen a decline in stock value due to the rising loss estimates from the California wildfires. JPMorgan warns that increasing loss estimates may breach reinsurance attachments at various insurers, leading to further financial strain.

Read more: Insurance stocks sell off sharply as potential losses tied to LA wildfires increase