California Wildfires Trigger Sharp Stock Declines for Insurers As Wildfires Threaten High-Value Homes

Benzinga 2025-01-13

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Insurers exposed to California homeowners saw sharp stock declines Friday due to the growing devastation of Los Angeles wildfires. Allstate shares dropped 6%, while Chubb and Travelers declined more than 3%. AIG and Progressive saw losses of over 1%. JPMorgan identified Allstate, Chubb, and Travelers as having the highest exposure to insured wildfire losses, noting Chubb’s vulnerability due to its focus on high-net-worth clients in the region. The insured losses from the wildfires could exceed $20 billion, according to JPMorgan. Moody’s predicted billions in losses due to the high property values in the affected areas.

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