The wildfires, which raged during the first half of January, have been estimated by some to be the costliest natural disaster in US history.
Hiscox has announced it will suffer a $170m (£134m) blow from the Los Angeles wildfires that ignited at the beginning of 2025.
The fires, which blazed throughout the first half of January, are considered by some to be the most expensive natural disaster in US history. Over 16,200 buildings were decimated as the flames tore through Pacific Palisades, Malibu, Pasadena and Altadena areas of Los Angeles.
On Thursday, Hiscox estimated that the broader insurance industry loss could reach up to $40bn (£31.6bn), with the majority of its own losses stemming from its reinsurance division, Hiscox RE & ILS. The total economic damage from the firestorm is projected to exceed $250bn (£197.9bn).
According to an analysis by the Los Angeles Times, property losses from just the Palisades and Eaton fires alone could potentially surpass $30bn (£23bn). Hiscox plans to record its own loss from the event in the first quarter of the forthcoming financial year, as it reported a second consecutive year of record profit.
The insurer posted a pre-tax profit of $685.4m (£541m) in 2024, marking nearly a tenth increase year-on-year. The group described the wildfires as causing “tragic loss of life and widespread destruction. We extend our sympathies to our customers and to all of those impacted by these events”.
Hiscox also highlighted a significant loss of $28m (£22m) resulting from the Baltimore Bridge collapse, where a major US suspension bridge crumbled after being struck by a container ship. The company noted that 2024 was marked by an “active natural catastrophe year”, citing five hurricanes in the US, widespread flooding in Spain, Germany, and central Europe, as well as extreme weather events in Canada.
Hiscox stated that losses due to natural catastrophes were “within expectations”. Notably, Hurricane Milton, which hit Florida in October, did not incur as substantial a loss as initially anticipated. The company underscored its commitment to supporting customers during such times, emphasizing the importance of a high-quality claims service in helping them recover quickly.
