Analysts at Peel Hunt noted that Lancashire's loss estimates would represent 50 basis points of $31billion in estimated insured industry losses, higher than the 29 bps the broker had assumed based on the 2017/18 California wildfires.
The devastation caused by last month's California wildfires will cost London-listed insurer Lancashire Holdings as much as £132million in payouts.
The group assured investors it remains 'extremely well capitalised to achieve its strategic ambitions', while it has adequate aggregate reinsurance cover in place to 'protect against the frequency of large catastrophe events' and deliver 'attractive return for shareholders in 2025'.
Lancashire Holdings shares were down 5.4 per cent to 595p in early trading, bringing 2025 losses so far to 9.4 per cent.
January's wildfires killed at least 29 people and more than 200,000 were evacuated, as 18,000 homes and structures were destroyed, and over 57,000 acres of land were burned.
