Lancashire expecting $145m to $165m losses from California wildfires

(Sharecast News) - Insurer Lancashire Holdings said on Thursday that it expects to incur net ultimate losses of between $145m and $165m related to the California wildfires. This estimate falls within its modelled loss ranges for this type of catastrophe event.

Chief executive Alex Maloney said: "Our thoughts are with all those affected by the recent wildfires which wrought such devastation in California. Events like this show the value of (re)insurance products in both offering protection and in supporting people as they rebuild their lives.

"Given our strong earnings performance and capital generation in 2024 Lancashire remains extremely well capitalised to achieve its strategic ambitions. In addition, the aggregate reinsurance cover the company has in place to protect against the frequency of large catastrophe events should allow Lancashire to deliver an attractive return for shareholders in 2025."

Maloney said the company will provide a further update on its position regarding these losses and further guidance for 2025 with its full-year results in March.

Lancashire said its preliminary estimate has been derived from a combination of market data and assumptions, a limited number of provisional loss advices, limited client loss data and modelled loss projections.

The actual ultimate loss may vary from the preliminary estimate "as additional information emerges", it said.