German reinsurers take 1.4-billion-euro hit from LA wildfires
German reinsurers posted losses of more than a billion euros on the back of the Los Angeles wildfires.
Munich Re, the world’s largest reinsurance company, said it took a loss of about 800 million euros ($889 million) in the first quarter of 2025 due to the wildfires in California earlier this year.
Reinsurance firms offer policies to primary insurance providers, who typically deal directly with customers on the ground. Reinsurance policies usually only kick in after about 400 million euros worth of losses are absorbed by the primary insurance provider.
“The devastating wildfires in Los Angeles resulted in this segment’s largest single claims event, totalling approximately €0.8bn (nominal),” the company said in its quarterly statement. Despite the hit, the group reported a net profit of 1.1 billion euros, down 48% from the previous year.
Hannover Re, the world’s third largest reinsurer, said its largest net individual loss was 631.4 million euros from the California wildfires.
“Payments for large losses reached EUR 764.7 million in the first quarter – driven above all by the California wildfires – and thus came in significantly higher than the envisaged large loss budget of EUR 435 million,” Hannover said in its quarterly statement. Net profit for the firm fell by 14% to 480 million euros.
— Ganesh Rao
European markets: Here are the opening calls
European markets are expected to open in mixed territory Tuesday.
The U.K.’s FTSE 100 index is expected to open 4 points lower at 8,591, Germany’s DAX up 23 points at 23,569, France’s CAC 3 points lower at 7,834 and Italy’s FTSE MIB 30 points lower at 39,222, according to data from IG.
Earnings come from Softbank, Tata Motors, Metro Bank and Bayer. Data releases include U.K. retail sales and unemployment figures. Germany’s ZEW survey of economic sentiment is also due to be released.
— Holly Ellyatt