The current fires occurred in areas that are more densely populated with higher property values, hurting insurance providers with a high-net-worth focus.
As Los Angeles continues to battle wildfires that have ravaged swaths of the city, insurers exposed to the California homeowners market could face an earnings hit up to 20%. Wall Street firms Goldman Sachs and Wells Fargo have already hiked their original estimates for insured losses as the devastation of the wildfires spread — seeing as much as $30 billion for the insurance industry. Those losses would far surpass the $12.
An overhead pole camera image shows wildfire damage to an Altadena Drive street sign and home destroyed by the Eaton Fire in Altadena, Los Angeles County, California on January 14, 2025.that have ravaged swaths of the city, insurers exposed to the California homeowners market could face an earnings hit up to 20%.
Wall Street firms Goldman Sachs and Wells Fargo have already hiked their original estimates for insured losses as the devastation of the wildfires spread — seeing as much as $30 billion for the insurance industry. Those losses would far surpass the $12.5 billion in insured damages from theThe current fires occurred in areas that are more densely populated with higher property values, particularly hurting insurance providers with a high-net-worth focus, BofA said.
The Palisades Fire is the largest of the five blazes. It has burned more than 17,000 acres, destroying , according to California authorities. The average home price in Palisades is $3.5 million, according to Jefferies.
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