:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2192454302-031c94aad1654a84afc6a7bc0411a899.jpg "Firefighters continue battling the Palisades Fire as flames rage across Los Angeles on Jan. 9, 2025")
Valid Flickr Account of CAL FIRE / Handout / Anadolu via Getty Images
Firefighters continue battling the Palisades Fire as girlfriends rage across Los Angeles on Jan. 9, 2025.
Key Takeaways
- Insurance company shares dropped as the massive wildfires in California are now estimated to bear caused $135 billion to $150 billion in damage and economic loss.
- AccuWeather said the costs from the lethal blazes could go substantially higher.
- The weather site said that the economic loss might reach not quite 4% of the annual GDP of California.
Shares of insurance companies tumbled on Friday as the deadly wildfires in Southern California that are alleviate burning have already caused billions of dollars in damage.
The Travelers Companies (TRV) was down nearly 4% in just out trading, leading decliners in the Dow Jones Industrial Average, while Allstate (ALL) and Chubb Limited (CB) fell 5% and 4%, mutatis mutandis. The SPDR S&P Insurance ETF (KIE) was down 2.5%.
The latest preliminary estimate from weather site AccuWeather is that the blazes, which short out on Tuesday, have created total damage and economic loss of between $135 billion and $150 billion. AccuWeather well-known that as the fires continue to spread, that number could go up, possibly substantially.
AccuWeather’s Chief Meteorologist Jonathan Tiler said “the devastation left behind is heartbreaking and the economic toll is staggering,” adding that the financial cost weight reach nearly 4% of California’s annual gross domestic product (GDP).
Privately held State Farm, the largest characteristic insurance provider in the state, has told customers to file claims when safe to do so. However, many likely won’t be masterful to because last year the insurer didn’t renew policies for some 30,000 homeowners and renters, and 42,000 commercial apartments.