German reinsurers took a $1.9 billion profit hit from LA wildfires in first quarter

German reinsurers took a $1.9 billion profit hit from LA wildfires in first quarter

The wildfires, which devastated Los Angeles in January, led to claims worth almost $1.9 billion for two of the world’s biggest reinsurers.

The forest fires in southern California are causing devastating damage in January - this also affects the balance sheets of Germany's two largest reinsurers. The head of Hannover Re speaks of an example of "how climate change favours risks for extreme weather events".

In January, parts of California's million-dollar metropolis of Los Angeles went into smoke and flames. For the German insurers, this is a big harm.

Despite billions of dollars in losses from wildfires around Los Angeles, Munich Re and Hannover Re confirm their annual targets. Profits declined significantly in the first quarter, but the two German industry giants remain optimistic.

The devastating forest fires in the U.S. state of California at the beginning of the year cost the reinsurer Hannover Rück significantly more than he had planned for the first quarter for such major damage. Accordingly, the profit declined significantly. Corporate CEO Clemens Jungsthöfel was nevertheless confident that he would achieve the annual targets. In the April renewals, the reinsurer had to accept a price decline. The trend could continu…

In January, parts of Los Angeles went into smoke and flames. For the Munich-based Dax Group Munich Re, this is a major damage.