Travelers estimate a $1.7 billion loss from the wildfires in California: Details explored

Modified Feb 13, 2025 14:54 ET

Los Angeles Recovers From Historically Devastating Wildfires - Source: Getty

Travelers, an American Insurance Company, calculates an approximate loss of $1.7 billion dollars from the devastation of the January wildfires in California. In a statement that came out this past week, the insurance company revealed that the initial numbers show catastrophic losses making it one of the priciest natural disasters.

Powerful Winds Fuel Multiple Fires Across Los Angeles Area - Source: Getty

The California wildfires, which were first reported on 7th January 2025, are responsible for destroying thousands of houses and killing dozens of people. The estimates included losses from the company's personal and commercial segments. This reportedly includes its quota from Fidelis, an insurance company that Travelers is a minor investor in. The devastations caused many concerns for insurers, who have started retreating from the state because of the rising losses due to the wildfires.

In a statement, Alan Schnitzer, Traveler’s chairman and chief executive officer said,

"As a company deeply embedded in the communities we serve, we are on the ground providing critical resources and support that our customers and neighbors need to recover and rebuild."

In 2023, California accounted for 10.4% of Travelers' direct written premiums, as per their annual regulatory filing. The company committed $1 million to recovery in the state this past month. However, according to a statement the company made, the effects of this natural disaster would persist to affect the insurance industry in the future.

Edited by Sohini Biswas

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Travelers estimate a $1.7 billion loss from the wildfires in California: Details explored

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