Chubb Ltd. estimates that the wildfires that ravaged swaths of Los Angeles earlier this month will cost the insurer $1.5 billion in the first quarter.
The Zurich-based firm revealed the expected cost in a statement Tuesday that detailed its fourth-quarter 2024 results, making it the first insurer to provide an estimate of wildfires’ financial impact.
Related: LA Wildfires by The Numbers: Insured Losses, Total Losses, Ratings, Rates
Travelers Cos didn’t provide an estimate when it released its results last week.
“The California wildfire disaster is a terrible tragedy that is still unfolding,” Chubb Chief Executive Officer Evan Greenberg said in the statement. “Our colleagues have been on the ground from the beginning, endeavoring to assist our policyholders who have lost property, been displaced from their homes and businesses, and had their lives severely disrupted.”
Related: Fitch Says LA Fires Could Consume 30% of European Reinsurer Natural Disaster Budgets
Estimates of the total cost for the industry have climbed to as much as $40 billion, as the fires kept spreading devastation for weeks across Los Angeles — destroying property and killing at least 28 people. Rain has in recent days helped tame the fires, which as of Tuesday are largely contained.
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