Subject: Re: California Fire Insurance Loss
Excerpts from Barron’s:

“J.P. Morgan analyst Jimmy Bhullar wrote Thursday that insured losses could exceed $20 billion from the L.A. fires, which would be the largest wildfire loss in state history, exceeding the previous record of $10 billion from the 2018 Butte County Camp fires in the state. Total economic losses for the L.A. fires could total $50 billion.”


“The largest four homeowner insurers in the state in 2023 were State Farm (19.9% of written premiums), Farmer Insurance (14.9%), CSAA Insurance Exchange, and Liberty Mutual, according to S&P Financial and J.P. Morgan. These four companies aren’t public. State Farm and Liberty are owned by policyholders.

State Farm has shed homeowner policies during the past year in the affected areas in Los Angeles, reducing its financial exposure to the fires.

Mercury General is No. 5 in the state, Allstate sixth, Travelers ninth, and Chubb 11th in the homeowners market. Berkshire isn’t in the top 20.

Berkshire is a sizable auto insurer in the state through its Geico unit but auto insurers aren’t expected to suffer substantial losses from the fires.

Berkshire also has a large reinsurance business. CEO Warren Buffett has said that Berkshire could absorb 3% of losses from a major catastrophe, such as a hurricane, earthquake, or fire.”

Extraordinarily appreciative of Ajit & his wise and disciplined team during times like these.

Thoughts and prayers to all the victims and communities suffering out West.