Insurers have paid out more than $4 billion in wildfire claims so far. (Credit: Ryland West/ALM)
Travelers estimates the LA wildfires will cost it more than $1 billion.
In a statement released this week, the Travelers Companies said preliminary numbers showed a pre-tax hit of $1.7 billion, or $1.3 billion after tax. That estimate includes losses from Travelers’ commercial and personal segments, assessments from the California FAIR plan and recoveries from reinsurance.
“As a company deeply embedded in the communities we serve, we are on the ground providing critical resources and support that our customers and neighbors need to recover and rebuild,” said Alan Schnitzer, Traveler’s chairman and chief executive officer, in a statement. “We also extend our heartfelt appreciation to the first responders and relief organizations working tirelessly to aid those impacted by this tragedy, as well as to our claims professionals, who consistently go above and beyond.”
As of Jan. 30, insurers had paid out $4.2 billion in wildfire-related claims, according to the California Department of Insurance. The department says 31,210 insurance claims have been filed so far.
Other insurers are also seeing large losses due to the fires. Allstate has reported losses of $1.1 billion, and USAA is estimating losses of $1.8 billion. Last week, State Farm requested an emergency rate hike to help it cope with wildfire costs. The company says it has so far received 8.700 wildfire claims and paid out more than $1 billion.
CoreLogic has estimated commercial and residential losses from the LA wildfires at up to $45 billion. “The destruction caused by these fires is anticipated to be the most expensive in the state’s history with effects on the insurance industry that will persist into the future,” the company said in a statement.
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