LA wildfire insurance losses could hit $40b

Wildfire insurance losses in Los Angeles could reach $40 billion, according to new estimates from Keefe Bruyette & Woods on Wednesday. The revised figure is double their previous estimate, reflecting the ongoing and largely uncontrolled blazes.

The Palisades and Eaton fires remain only 17 and 35 per cent contained, respectively, as hot, dry winds continue to fuel the flames. The fires, which have been raging for a week, have killed at least 24 people and destroyed entire neighbourhoods.

Major insurers such as Allstate, Travellers, and Chubb face significant losses, with firms like Chubb, AIG, and Cincinnati Financial potentially bearing higher-than-expected exposure due to their coverage of high-net-worth homeowners.

Attribution: Bloomberg

Subediting: Y.Yasser