Lloyd's of London expects $2.3 billion in net losses from Los Angeles wildfires

Reuters

Mon, Mar 10, 2025, 10:43 AM 2 min read

LONDON (Reuters) - Lloyd's of London said connected Monday it expected $2.3 cardinal successful nett losses caused by the caller Los Angeles wildfires, arsenic the security marketplace reported a dip successful underwriting nett for past year.

The estimated nonaccomplishment from the wildfires successful January, which killed much than 2 twelve radical and destroyed oregon damaged much than 16,000 structures, follows an announcement by Germany's Munich Re that it faced astir 1.2 cardinal euros ($1.3 billion) successful claims from the fires.

Hannover Re, different German reinsurer, forecast claims of 700 cardinal euros portion French insurer AXA estimated a pre-tax interaction of astir 100 cardinal euros.

"We would similar to widen our deepest sympathies to those affected by the California fires earlier this year. Although we are inactive assessing the afloat impact, we bash not expect this to beryllium a superior event," Burkhard Keese, Lloyd's main fiscal officer, said successful a statement.

Lloyd's said the estimated losses were not included successful its results for 2024, which it released connected Monday successful a acceptable of preliminary numbers earlier its last full-year results are published connected March 20.

Keese described 2024 arsenic an "excellent underwriting year" for Lloyd's arsenic gross written premiums roseate 6.5% connected a year-on-year ground to 55.5 cardinal pounds, acknowledgment chiefly to maturation successful its spot and reinsurance divisions.

However, underwriting nett dropped to 5.3 cardinal pounds, 10% little than the 5.9 cardinal pounds it reported for 2023.

Lloyd's said its combined ratio roseate to 86.9%, up from 84% successful the erstwhile year. The combined ratio is an manufacture measure, with a speechmaking beneath 100% meaning net from premiums are higher than the magnitude paid retired successful claims.

Lloyd's is simply a commercialized security and reinsurance market, with much than 50 subordinate companies.

($1 = 0.9234 euros)

(Reporting by Tommy Reggiori Wilkes; Editing by Paul Simao)