Travelers Expects $1.7 Billion In Catastrophe Losses From California Wildfires

The Travelers Companies, Inc. TRV announced Tuesday that it expects $1.7 billion in pretax catastrophe losses from the California wildfires that swept through the state in January. After taxes, the estimated loss amounts to $1.3 billion.

The insurer said the estimate includes losses from its personal and commercial segments, as well as assessments from the California FAIR Plan, the state's insurer of last resort. Recoveries from reinsurance have been factored into the estimate.

Analysts have projected that total industry losses from the wildfires could reach $30 billion. Other insurers are also reporting significant impacts. Last week, Allstate said it expects about $1.1 billion in pretax catastrophe losses from the fires, net of reinsurance.

Travelers’ announcement follows a challenging period for insurers operating in California, where wildfire risk has led several companies to scale back coverage or raise premiums. The FAIR Plan, which provides limited fire insurance for homeowners unable to get coverage elsewhere, can require insurers to help fund claims.

Travelers said it is actively working to process claims and assist affected policyholders. CEO Alan Schnitzer acknowledged the scale of the disaster, noting the company’s commitment to supporting customers and communities impacted by the fires.

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