DailySun
The costs related to the wildfires wreaking havoc across extensive regions of Los Angeles are climbing, with recent projections for total insurance losses now soaring to approximately $40 billion.
The revised estimate provided on Tuesday by analysts at Keefe Bruyette & Woods is double their earlier prediction from just one day earlier. In their message to clients, they highlighted the “continuing possibility of increased insured losses” as the fires in the region remain largely uncontrolled. Their most optimistic scenario indicates that insured losses could be about $25 billion.
Los Angeles is bracing for increased fire risk at least until Wednesday due to hot, dry winds affecting the area. After a week of relentless blazes, at least 24 lives have been claimed, and entire communities have been turned to ash.
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The containment status of the Palisades and Eaton fires, which have inflicted the most damage over the last week, was reported at 17% and 35%, respectively, as of Tuesday, according to California’s Department of Forestry and Fire Protection.
Among the companies likely to face the largest primary losses from these fires are Allstate Corp, Travelers Cos, and Chubb, as per the KBW analysts.
Nevertheless, insurance providers focusing on high-net-worth homeowners, such as Chubb, American International Group, and Cincinnati Financial Corp, may face more significant exposure than what their statewide market shares would usually suggest, according to the analysts.
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