1443 GMT - European insurers Zurich, Scor and Conduit Re have been oversold on the news of the L.A. wildfires and could benefit from firming prices, Berenberg writes. Insurance rates would be expected to rise to help cover for the unexpected rise in claims from a severe event such as the wildfires. Zurich's own loss exposure is relatively modest and its Farmers division will likely benefit from pricing rises, analysts note, calculating a $200 million loss. For Scor, which has retrenched its exposure significantly since the 2018 wildfires, loss exposure should also be relatively modest at an estimated 50 million euros, they note. Conduit Re's share-price reaction seems clearly overdone and since there is little data on its exposures, analysts pencil in a $30 million loss. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
January 15, 2025 09:44 ET (14:44 GMT)
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