by Tyler Durden<\/p>\n\n\n\n
Out-of-control wildfires burning across the Los Angeles area continued Friday morning, destroying at least 10,000 structures<\/a> and causing estimated fire damage over $150 billion<\/strong>. Meteorologists have issued warnings for “critical red flag<\/strong>” conditions throughout the day, signaling that fire damage to homes and businesses will broaden into the weekend. <\/p>\n\n\n\n Insurance companies are bracing for the worst-case scenario<\/strong> as analysts at JPMorgan said Thursday that insured losses could top $20 billion<\/strong>. <\/p>\n\n\n\n JPM’s Jimmy Bhullar said insured loss estimates could be revised even higher “if the fires are not controlled.” <\/p>\n\n\n\n Bhullar said losses would be “confined mostly” to homeowners insurers like Allstate, Travelers, and Chubb<\/strong>, but noted that commercial property insurers like American International Group and Kinsale Capital Group could also be exposed. <\/p>\n\n\n\n Shares of Allstate dropped 5% in premarket trading, while Travelers fell 4%, Chubb -4%, AIG -3.5%, and Kinsale -1%. <\/strong><\/p>\n\n\n\n <\/a><\/p>\n\n\n\n Shares in Mercury General<\/strong>, whose insurance organization is mostly centered in California, crashed 35% in premarket trading<\/strong>. About 80% of its premiums of $4.6 billion in 2024 were derived from the state, making it one of the most exposed insurers to the LA County fire<\/strong>. <\/p>\n\n\n\n <\/a><\/p>\n\n\n\n “This would make this event significantly more severe than the 2018 Butte County Camp Fire, the highest insured-loss wildfires in California’s history previously,” with insured losses of roughly $10 billion, the analysts said.<\/p>\n\n\n\n In a separate note, RBC Capital Markets’ Scott Heleniak wrote, “We think these could be among the most expensive wildfires in U.S. history,<\/strong>” adding the estimated insured losses so far could easily exceed $20 billion.<\/p>\n\n\n\n The latest AccuWeather estimate<\/strong> for the total damage and economic loss in LA County has surged to a staggering $135 billion to $150 billion<\/strong>, a massive increase from Wednesday’s estimate of $52 billion to $57 billion.<\/p>\n\n\n\n As of Friday morning, five separate fires<\/strong> were raging in the LA County area. Containment levels are very low. <\/p>\n\n\n\n![\"\"\/](\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/Snag_3e57a35b.png?itok=uLFHuV7j\")
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![<\/a><\/strong><\/p>\n\n\n\nCatosphere bond news website Artemis<\/a> noted, “We are still a long way off any loss estimates based on actual damage information, given the still-unfolding disaster situation in Los Angeles County.”<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"After 9\/11 their was a consultant with the government that looked at stock trades and came up with a system to analyze trading to determine when a major event was about to occur. With 9\/11, there were people that traded with advanced knowledge. I’d like to know who shorted or sold these insurance companies and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-10261","post","type-post","status-publish","format-standard","hentry","category-world"],"blocksy_meta":[],"featured_image_src":null,"author_info":{"display_name":"Jason","author_link":"https:\/\/jasonsblog.ddns.net\/index.php\/author\/jturning\/"},"_links":{"self":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/10261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/comments?post=10261"}],"version-history":[{"count":1,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/10261\/revisions"}],"predecessor-version":[{"id":10262,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/10261\/revisions\/10262"}],"wp:attachment":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/media?parent=10261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/categories?post=10261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/tags?post=10261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}](\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/2025-01-10_07-08-15.png?itok=VHG60ISw\"){kind=link}