European Insurers Absorb $3.5 Billion in Wildfire Losses, Impact Less Severe Than Anticipated

Ten major European insurers have reported $3.5 billion in combined losses from the recent Los Angeles wildfires, with the financial burden primarily shouldered through reinsurance payouts. The figure, while substantial, falls below initial market expectations.

German reinsurers Munich Re and Hannover Re account for the lion’s share at nearly $2 billion. Swiss counterparts Swiss Re and Zurich follow with approximately $830 million in losses. Four UK-based firms—Hiscox, Lancashire, Conduit Re, and Beazley—collectively absorbed $500 million in damages.

French insurers Scor and AXA reported losses of $167 million and $100 million respectively. These confirmed figures represent nearly 10% of total insured losses from the disaster, with no speculative estimates included in the disclosures.