The Hughes fire has grown to more than 10,000 acres Thursday and forced more than 31,000 Californians to evacuate an area near Castaic Lake, about 45 miles northwest of Los Angeles. 

What To Know: The latest fire to ravage the L.A. area broke out just before 11 a.m. PT on Wednesday and spread quickly under dry conditions and high winds. 

“This vegetation is extremely dry," said LA County Fire public information officer Fred Fielding, as reported by NBC Los Angeles. 

"We’ve had two years of above average rainfall (2023 and 2024)… so you’ve got a lot of these light grasses where these fires can start, and if it gets into that old growth vegetation there’s a lot of energy there. Combine that with the winds, and you’ve got a recipe for a very high rate of spread.”

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As of Wednesday night, the Hughes fire was 14% contained, according to the Los Angeles County Fire Department. A red flag warning has been extended through 10 a.m. Friday in Los Angeles and Ventura counties. 

What To Watch: AccuWeather estimates the total damage and economic loss from the wildfires to be between $250 billion and $275 billion and could increase as fires continue to burn. 

Travelers Companies, Inc. (NYSE:TRV), one of the major insurers in Southern California, addressed the California wildfires on its quarterly earnings call on Wednesday. 

Travelers' CFO Dan Frey said that the wildfires "are going to be a material event for the industry" and will have a "material impact on our first-quarter earnings." 

Other insurance companies with exposure to the wildfires include Allstate Corp. (NYSE:ALL), Chubb Ltd. (NYSE:CB), and Progressive Corp. (NYSE:PGR). All three companies will report fourth-quarter earnings at the end of January and beginning of February. 

Investors will watch for guidance and early estimates of how the fires will impact first-quarter results. 

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