Q1 nat cat losses total $56B: Gallagher Re

Global insured losses from natural catastrophes totaled $56 billion for the first quarter, according to a report Tuesday from Gallagher Re, the reinsurance business of Arthur J. Gallagher & Co.

The first quarter was the costliest in terms of insured losses since 2011 and was more than double the decadal average of $20 billion, with the January wildfires in Los Angeles estimated to drive more than $40 billion of insured losses, the report said.

Still, the losses “are expected to be more of an earnings event,” the report said, rather than a capital stress for insurers and reinsurers.

“The financial cost of natural catastrophes at the start of 2025 was notably elevated yet manageable for governments and the insurance industry,” the report said.

Looking solely at weather or climate event costs — which means excluding losses associated with earthquakes, volcanoes or other non-atmospheric-driven events — insured losses reached $55 billion, well above the decadal average of $18 billion and more than double first-quarter 2024’s $23 billion.

Gallagher Re also warned that figures could be subject to “loss creep” as further damages are discovered.

“Please note that Q1 loss totals often show robust loss development as more data clarity emerges,” the report said.