Insurers fall as LA fires set to be costliest in California history

Arch Capital

10/01/2025 11:02

** Shares of insurance companies fall in premarket trading,
as estimates of industry losses from the worst wildfires in Los
Angeles history move higher
    ** Los Angeles-based Mercury General  MCY.N  slumps 29.7%,
while U.S.-listed shares of Chubb  CB.BN  down 3.6%
    ** Insurers AIG  AIG.N , Lemonade  LMND.N , Progressive
 PGR.N , Travelers  TRV.N  fall 3.8%, 3.6%, 4.9% and 3.6%
respectively
    ** Reinsurers Arch Capital Group  ACGL.O  and RenaissanceRe 
 RNR.N  down 1% and 2%, respectively
    ** J.P.Morgan says overall industry losses expected to be
high as expectations of economic losses stemming from the fires
have more than doubled since it first broke out
    ** Brokerage estimates the insured losses from the event
could exceed $20 bln and even more if the fires are not
controlled, compared with its prior estimate of about $10 bln
losses
    ** ALL, TRV and CB are the most exposed to the California
homeowners' market, JPM says, adding that reinsurers ACGL and
RNR are exposed as well
    ** Majority of the insured losses likely to occur in the
homeowners' line and primary insurers likely to face a greater
burden than reinsurers - JPM
    ** Reinsurers in recent years have increasingly shifted the
risk of catastrophe losses toward primary insurers to reduce
their loss burden
    

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))