Progressive Corp. has estimated approximately $43 million in catastrophe losses from the Los Angeles wildfires that occurred in January, according to a company statement.
The insurer reported that personal property accounted for 72% of the total estimated losses. Based on direct premiums written, Progressive Insurance Group held a 0.49% market share of California’s multiperil homeowners insurance sector in 2023, according to data from BestLink.
Industry analysts anticipate total insured losses from the fires to reach tens of billions of dollars. The largest wildfires in the region, the Palisades and Eaton fires, were responsible for extensive destruction.
Other insurers have also reported significant financial impacts. The Farmers Exchanges, which include Farmers Insurance Exchange, Fire Insurance Exchange, and Truck Insurance Exchange, previously announced initial loss estimates of about $600 million from the California wildfires. Additionally, Fairfax Financial Holdings Ltd. has estimated net losses ranging between $500 million and $750 million.
The magnitude of the disaster has prompted California Insurance Commissioner Ricardo Lara to approve the California FAIR Plan’s request for a $1 billion assessment on the state’s property insurers. The assessment is intended to help continue payments for claims stemming from the wildfires, which destroyed or damaged more than 16,250 structures last month.
Despite the wildfire-related losses, Progressive recently reported a 19% year-over-year increase in its fourth-quarter net income, reaching $2.36 billion. The company is scheduled to hold a conference call on March 4 to discuss its fourth-quarter financial results.
Progressive’s underwriting entities currently hold Best’s Financial Strength Ratings of A+ (Superior) and A (Excellent).
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