The Los Angeles wildfires could consume more than 30% of the aggregate natural catastrophe budgets set for 2025 by Europe’s four largest reinsurers – Swiss Re, Munich Re, Hannover Re and SCOR, according to a Fitch Ratings commentary.
Insured losses borne by global insurers and reinsurers will materially exceed highs from past wildfire events, with current industry estimates ranging from $25 billion to $45 billion, the ratings agency said.
While the impact of the fires on European reinsurers’ natural catastrophe budgets will be significant, “the implications for their earnings and capital are not likely to