Farmers Estimates $600M in Losses from LA Wildfires
Farmers said on Wednesday that it expected damages from the Los Angeles wildfires last month to reach an estimated $600 million.
Insurance companies have so far paid out more than $6.9 billion for losses from the biggest two of the Los Angeles-area wildfires that swept across the region and damaged tens of thousands of homes in January, according to the latest numbers from the California Department of Insurance.
Data from insurers supplied by the CDI reveal 33,717 claims have been lodged for house, business, living expenditures and other disaster-related charges. The records show 5,597 auto insurance claims have been submitted for $73 million.
Several Large Insurers have Claimed Losses in Excess of $1 Billion.
Mercury Insurance Group indicated last week it anticipated gross losses from the wildfires to be in the $1.6 billion–$2.0 billion range. Travelers Companies Inc. announced it will lose an estimated $1.7 billion from last month’s wildfires.
USAA, Chubb, Allstate and State Farm are additional significant carriers to have reported $1 billion or more in losses from the fires.
The California FAIR Plan stated it paid more over $914 million to policyholders harmed by the fires, forcing the insurer of last resort to go to the state’s insurance commissioner for a $1 billion assessment on accepted market insurers to fund the claims.
The Farmers estimate is a net of the per occurrence reinsurance program and gross of tax, it excludes the Farmers portion of FAIR Plan losses and around $250 million reinstatement premium payment.
The Farmers Exchanges (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange) “focused approach to overseeing” its portfolio in California, a strong capital base and a comprehensive reinsurance program positioned the company to effectively manage this event, Farmers said in a statement.
“With deep roots in Southern California, the Farmers Exchanges remain dedicated to supporting the recovery process for all their customers, employees and communities impacted by the devastating fires,” the statement continues.
“The Exchanges also want to reaffirm their previously announced commitment to expand coverage options in California.”
Total economic damages from the fires in January could range from $95 billion to $164 billion, according to an analysis from UCLA.
Leave a Reply