Pacific Palisades wildfire losses could reach $10B: J.P. Morgan

Insured losses from the wildfire that broke out Jan. 7 primarily impacting the residential neighborhood of Pacific Palisades in Los Angeles could approach $10 billion, according to a note Wednesday from J.P. Morgan.

The bank emphasized the preliminary nature of the estimate but noted the 2018 Camp fire in Butte County caused inflation-adjusted insured losses of roughly $10 billion and that the current area affected “is an affluent residential area” with a median home price of more than $3 million versus the median home price of $500,000 in Butte County.

The J.P. Morgan report showed the top three California commercial fire insurers are Farmers Insurance with a 6.9% market share; Berkshire Hathaway Inc. with a 6.6% share; and Travelers Cos. Inc. with a 6.3% share.

In a separate report Wednesday, Guy Carpenter & Co. LLC said the Pacific Palisades fire had consumed 2,921 acres, while the Eaton fire in Altadena had burned 2,200 acres and the Hurst fire in Sylmar has burned 500 acres.

The fires were listed as “0%” contained and peak wind gusts up to 99 miles per hour in the San Gabriel Mountains were measured.

“The fast-moving Palisades fire, driven by dangerously high-speed Santa Ana winds, posed a significant threat to homes in the Pacific Palisades area of Los Angeles on Tuesday,” Guy Carpenter said.