The Los Angeles wildfires could consume more than 30% of the aggregate natural catastrophe budgets set for 2025 by Europe’s four largest reinsurers – Swiss Re, Munich Re, Hannover Re and SCOR, according to a Fitch Ratings commentary.
Insured losses borne by global insurers and reinsurers will materially exceed highs from past wildfire events, with current industry estimates ranging from US$25 billion to US$45 billion, the ratings agency said.
While the impact of the fires on European reinsurers’ natu