estimate of the cost of the loss

Early estimates of losses from the Los Angeles fires vary widely from one source to another. Thus, according to JP Morgan analysts, the fires which seriously affected the Californian city of Los Angeles would cause up to 20 billion in insured losses. This cost would make this event the costliest wildfire in California history.

AccuWeather, an American weather forecasting company, expects economic damage of between 250 and 275 billion USD, while affected areas such as Pacific Palisades, Santa Monica, Malibu are home to some of the most expensive residential homes in the United States.

For Standard and Poor’s, the amount of losses for the insurance market could be between 10 and 15 billion USD, a cost estimated to be manageable by insurers.

According to the rating agency, companies are starting the year 2025 with comfortable reserves thanks to good financial results for fiscal years 2023 and 2024. Some insurance companies have also reduced their exposure to fire risk in California.