Los Angeles: fires could absorb 30% of European reinsurers’ CatNat budgets

(AOF) – According to Fitch Ratings, the recent fires in Los Angeles could absorb more than 30% of the overall budgets devoted to natural catastrophes by the largest European reinsurers for 2025. “However, we expect losses to remain within limits of rating sensitivity due to the companies’ strong capital position and their diversified exposure to risks”, explains the American financial rating agency.

Insured losses borne by global insurers and reinsurers will far exceed the high levels reached during previous wildfires, with current industry estimates at between $25 billion and $45 billion.