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Lloyd's of London Faces $2.3 Billion Loss from California Wildfires

The January wildfires in Los Angeles caused significant devastation, with over 16,000 structures destroyed and 29 lives lost.

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Signage is seen inside the Lloyd's of London building in the City of London financial district in London, Britain, April 16, 2019. Picture taken April 16, 2019. REUTERS/Hannah McKay/File photo
Lloyd’s said in its preliminary results that its profit before tax dipped to £9.6 billion last year from £10.7 billion in 2023
The LA wildfires have dealt a multi-billion-dollar hit to the insurance industry

Overview

  • Lloyd's of London has estimated $2.3 billion in net losses from the January 2025 Los Angeles wildfires, one of the most costly wildfire events in insurance history.
  • The fires, which burned for 24 days, destroyed over 16,000 structures and consumed nearly 37,000 acres, severely impacting affluent neighborhoods like Pacific Palisades and Malibu.
  • The wildfires caused 29 fatalities and forced thousands of residents to evacuate, though fine art losses were limited as many wealthy homeowners removed valuable items before evacuating.
  • Private estimates place the total economic damage from the wildfires at $250 billion to $275 billion, with global insurers, including Munich Re and Hannover Re, also facing substantial claims.
  • Lloyd's reported strong overall financial performance for 2024, with a 6.5% growth in gross written premiums, but noted a 10% drop in underwriting profit due to claims from natural disasters.