# Lloyd’s of London expects $2.3bn losses from California wildfires

Insurance market says fine art losses were limited because rich residents took such possessions with them

Lloyd’s of London expects losses of $2.3bn (£1.78bn) from the  that ravaged Los Angeles this year, but fine art losses were limited because rich residents took their prize possessions with them.

The Eaton and Palisades blazes in Los Angeles in early January killed 29 people and were only fully contained after 24 days, having  and destroyed more than 16,000 buildings.

The world’s oldest insurance market reported a 10% drop in annual pre-tax profits, to £9.6bn, as part of a trading update, before the full results on 20 March.

While it will not be included in the 2024 results, Lloyd’s currently estimates the net loss to the market from the California wildfires to be about $2.3bn.

Burkhard Keese, the chief financial officer, said: “We would like to extend our deepest sympathies to those affected by the California fires earlier this year. Although we are still assessing the full impact, we do not expect this to be a capital event.”

He meant it would affect profits for 2025, but would not affect overall capital levels.

The affluent Pacific Palisades area and surrounding neighbourhoods were the ; for example, houses by the émigré Austrian modernist  have been reduced to ashes.

While some experts had expected big losses in fine art, Lloyd’s said most of its exposure was reinsurance payouts on home insurance policies. Keese  that rich residents took their fine art with them “because even if you get the money, you can’t replace your Rembrandt”.

Insurers around the world are facing billions of losses from the wildfires, with total losses across the industry estimated at up to $40bn, according to the .

Keese said human-made and natural catastrophe losses were likely to keep the cost of commercial cover higher for longer, despite expectations that some prices would fall this year, after losses from US hurricanes dipped because of less severe storm seasons.


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