Insurance Company Stocks Fall as Damage Estimates from California Wildfires Rise

Insurance Industry Impact - Shares of insurance companies tumbled on Friday due to the deadly wildfires in Southern California, with The Travelers Companies (TRV) down nearly 4%, Allstate (ALL) down 5%, and Chubb Limited (CB) down 4% [1] - The SPDR S&P Insurance ETF (KIE) was down 2.5% [1] Economic Loss Estimates - The wildfires have caused total damage and economic loss estimated between $135 billion and$150 billion, with potential for further increase as the fires continue to spread [2] - The financial cost might reach nearly 4% of California's annual gross domestic product (GDP) [3] Insurance Company Response - State Farm, the largest property insurance provider in California, has advised customers to file claims when safe, but many may not be able to due to non-renewal of policies for approximately 30,000 homeowners and renters, and 42,000 commercial apartments last year [4]