The global rating power house Fitch says that losses from the California Wildfire will negatively affect the 4th quarter earnings of Companies with material property exposure in the state.
However, the losses are expected to remain within the anticipated level. Insurance Companies affected are generally the larger, national carriers with large capital bases and high Insurer financial strenght ratings.
A sizeable portion of the coverage is provided by the Excess and surplus market, which may shift losses away from traditional admitted insurers.
It should be recalled that the Camp Fire is already the most destructive fire in the history of California with almost 12,000 Structures with a total reconstruction cost of more than US$18 billion. Insured losses from the Wildfire could reach US$13 billion