Investing.com — According to Fitch Ratings, the world’s leading reinsurers are expected to weather the financial impact from their exposure to the Los Angeles fires without significant damage to their finances. The ratings agency stated in a report that the consequences for earnings and capital are not likely to be substantial.
The fires, which have been devastating the second-largest city in the United States since the start of the year, are projected to result in insured losses ranging from $25 billion to $45 billion. This estimate is based on industry figures cited by Fitch. If the losses reach $35 billion, Munich Re, Hannover Re (OTC:HVRRY), Swiss Re (OTC:SSREY) and Scor (EPA:SCOR) SE, some of the world’s largest reinsurers, would face a collective impact amounting to 30% of their combined budgets for natural catastrophes, according to the report from Fitch Ratings.
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