Staff Reporter
Swiss Re announced Thursday that it anticipates claims from the wildfires in Los Angeles will total less than $700 million, impacting its results for the first quarter. This marks the latest disclosure from a European reinsurer regarding the January fires.
The wildfires resulted in the deaths of over two dozen individuals and caused damage to more than 16,000 structures, affecting an area larger than Paris.
Swiss Re’s projected claims are lower than those predicted by its larger competitor, Munich Re. On Wednesday, Munich Re revealed it expects to account for approximately 1.2 billion euros (about $1.26 billion) in losses, the highest reported by any European reinsurer related to this disaster.
Analysts estimate that insurance claims across the industry from the recent wildfires could soar to as much as $45 billion. Hannover Re, a German reinsurer, has indicated it may face claims totaling around 700 million euros.
Fitch Ratings has noted that European insurers had previously reduced their exposure to California following a series of fires in 2017 and 2018.
However, they will still be “materially affected” by the 2025 wildfires due to their extensive impact.
Swiss Re provided these estimates in its 2024 earnings report, which revealed a 3.1% increase in net profit compared to the previous year.
The company’s net profit reached $3.24 billion, up from $3.14 billion in 2023, surpassing analysts’ expectations of $3.13 billion.
