1016 GMT - The potential earning losses for European reinsurers have increased as the insured loss estimates for the L.A. wildfires are now between $30 billion and $50 billion, up from $20 billion, Citi says in a research note. The rise in estimates changes the situation since primary companies run through retention layers, analyst James A Shuck writes. Citi's modeling suggests an excess of loss reinsurance bill rising to between $3.3 billion and $33.3 billion aligned with the magnitude of insurance losses, between $20 billion and 50$ billion. Around a third of annual natural catastrophe budgets will be utilized just two weeks into the year, hitting earnings by between 11% and 18% based on a $30 billion insured loss, he adds.(elena.vardon@wsj.com)
(END) Dow Jones Newswires
January 16, 2025 05:16 ET (10:16 GMT)
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