Allstate says California wildfires to bring company $1.1 billion in losses

Allstate said the wildfires that blazed through Southern California last month will bring the insurance company a sizable loss.CEO Tom Wilson said in a statement Wednesday that the wildfire-related losses are "expected to be about $1.1 billion, pre-tax, net of reinsurance, reflecting a decision to reduce market share beginning in 2007 and a comprehensive reinsurance program."Allstate’s expected loss from the Los Angeles-area wildfires was disclosed in the insurance company’s fourth-quarter earnings release.The company's share of the California homeowners market stood at 5.8% at the end of 2023, down significantly from 12.6% 15 years ago, according to Allstate.STATE FARM ASKS CALIFORNIA TO APPROVE RATE HIKES AFTER WILDFIRESAllstate Property Liability President Mario Rizzo said during the company’s earnings call that it had "responded quickly and empathetically to help customers and communities after the tragic wildfires in Southern California."Multiple wildfires devastated parts of the Los Angeles area last month, killing over two dozen people. One of the blazes, the Palisades Fire, scorched through 23,700 acres and razed over 6,800 structures. GET FOX BUSINESS ON THE GO BY CLICKING HERE"We deployed mobile claim centers and over 900 team members to assist customers. Helping our customers recover from the fires is our principal priority," Rizzo said. "The financial impact of the wildfires reflects the comprehensive risk and return approach we’ve taken to managing the homeowners insurance business." The estimated $1.1 billion loss will appear in the company's first-quarter earnings.Rizzo said that Allstate would "continue to monitor the development of this event and give an update later in February. LA BUSINESSMAN RICK CARUSO LAUNCHES FOUNDATION TO REBUILD AFTER WILDFIRESThe company generated $64.1 billion in 2024, including $16.6 billion in the fourth quarter. Its adjusted annual net income came in at $4.9 billion. As of Friday, shares of Allstate were roughly flat from the start of 2025. Over the past 12 months, they have posted an over 20% increase.    Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business