Shares of Chubb (CB), a major property and casualty insurer, plunged 5.12% in pre-market trading on Friday amid fears that the devastating wildfires raging across Los Angeles could result in massive insured losses for the company.
The wildfires, which started on Tuesday, have already damaged or destroyed more than 9,000 structures and forced the evacuation of over 130,000 residents. The total economic loss attributed to the fires is estimated to be between $135 billion and $150 billion, according to updated figures from AccuWeather.
Analysts warn that the insured losses from the fires could exceed $20 billion, making it the costliest wildfire event in California's history. Chubb, along with other major insurers like Allstate (ALL) and Travelers (TRV), is expected to bear a significant portion of these losses due to their sizable exposure to the California homeowners insurance market.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.