Zurich Insurance Sees $200 Million LA Wildfire Loss

Zurich Insurance Group AG is expecting pretax losses of $200 million from the January California wildfires as the insurer reported a 5% gain in profit for 2024.

Group operating profit rose to $7.75 billion in the year, the company said in a statement on Thursday, beating the $7.64 billion consensus analyst estimate. Net income increased 34% from a year earlier to $5.81 billion. Shares rose as much as 3.2%.

Related: Farmers Estimates $600M in Losses from LA Wildfires

The estimated wildfire losses come from Zurich’s Farmers division as well its exposure to California through its commercial business.

The number compares with the $500 million in net losses American International Group Inc. has estimated from the Los Angeles fires before reinstated premiums. Travelers Cos., Allstate Corp. and Chubb Ltd. are all anticipating losses of more than $1 billion each.

Related: Insurers Have Now Paid Out Nearly $7B for LA Wildfires, Report Shows

Weather-related events are the biggest risk for its customers, Chief Executive Officer Mario Greco said in a Bloomberg Television interview.

Greco, who’s been the insurer’s boss since 2016, has simplified Zurich’s structure and expanded the business through bolt-on acquisitions across the globe. Shares of the firm are trading at their highest level in more than two decades and the firm has consistently delivered on its dividend payouts, one of the main perks for shareholders in insurance companies.

Related: California Approves FAIR Plan Request to Assess Insurers $1B for Wildfire Claims

On Thursday, Zurich Insurance also said it proposed the election of Thomas Jordan, a former Swiss National Bank chairman, to its board at the next shareholders meeting on April 9.

Top photo: Homes destroyed by the Eaton Fire in Altadena, California. Photographer: Kyle Grillot/Bloomberg.

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Topics
Catastrophe
Natural Disasters
Profit Loss
Wildfire
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