Insurance companies associated with the California real estate market faced significant stock sell-offs due to the ongoing Los Angeles wildfires. Allstate (ALL, Financial) experienced a decline of over 4%, Chubb (CB) fell more than 3.6%, and Travelers Companies (TRV) dropped over 3%. American International Group (AIG) also saw a decrease of more than 1.5%.
According to JPMorgan, Allstate, Chubb, and Travelers are the most vulnerable to fire insurance losses. The financial institution noted that Chubb's focus on high-net-worth assets in the Los Angeles area might expose it to higher risks.
This week's devastating fires in Los Angeles could become the most costly in California's history. JPMorgan estimated on Thursday that the insurance losses from the fires could exceed $20 billion. If the fires continue to spread, the potential losses could rise further.
