Insurance company Allstate has reported that wildfires in Southern California last month will result in a significant loss of approximately $1.1 billion, pre-tax and net of reinsurance. CEO Tom Wilson stated that the losses are attributed to a decision made in 2007 to reduce market share and a comprehensive reinsurance program.
The Los Angeles area saw multiple devastating wildfires, with one blaze, the Palisades Fire, burning over 23,700 acres and destroying over 6,800 structures. Allstate responded quickly to help customers, deploying mobile claim centers and over 900 team members to assist those affected.
Allstate Property Liability President Mario Rizzo said that the financial impact of the wildfires reflects the company’s comprehensive risk management approach. The estimated loss will be reported in the company’s first-quarter earnings, which also saw a significant revenue increase, including $64.1 billion for 2024 and $16.6 billion in the fourth quarter.
Despite the losses, Allstate shares have remained relatively stable, increasing by over 20% in the past year.
Source: https://www.foxbusiness.com/markets/allstate-says-california-wildfires-bring-company-1-1-billion-losses