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Los Angeles wildfires: substantial yet manageable insured losses
According to Standard & Poor's (S&P), given the high value of properties and buildings in the areas ravaged by the Los Angeles fires, home insurers are looking at significant losses.
The rating agency's initial estimates point to insured losses ranging from 10 to 15 billion USD.
Thanks to the solid results achieved in 2024, S&P-rated insurers are theoretically well capitalized to cope with the damage.
Additionally, some direct insurers, including State Farm and Allstate, have reduced their exposure to fire risk in California.
According to Moody's, insurers specializing in non-traditional natural catastrophe risks (excess and surplus (E&S) property market in California) are generally diversified and can quickly increase premiums to recover losses.
Top 10 private home insurers in California
Figures in millions USD| Insurer | Direct premiums in California | Direct premiums in the US | Premiums in California / Premiums in the US | E&S* risks |
|---|---|---|---|---|
| State Farm | 2 752 | 93 787 | 3% | 134 967 |
| Farmers | 2 050 | 27 221 | 8% | 6 193 |
| Liberty Mutual | 908 | 45 795 | 2% | 27 714 |
| CSAA | 895 | 6 042 | 15% | 3 354 |
| Mercury | 839 | 4 525 | 19% | 1 667 |
| Allstate | 792 | 49 503 | 2% | 13 162 |
| USAA | 742 | 32 002 | 2% | 25 391 |
| Auto Club | 720 | 6 088 | 12% | 9 555 |
| Travelers | 605 | 38 597 | 2% | 23 868 |
| Nationwide | 427 | 19 766 | 2% | 18 971 |
| Total | 10 730 | 323 326 | 3% | 264 842 |
| Market total | 13 959 | 968 597 | 1% | 1 043 245 |
* Exceptional risks outside the traditional market
