By Sabela Ojea
Mercury General said it expects to cover the costs from the Los Angeles wildfires after its reinsurance retention level exceeded $150 million.
Shares dropped 16% to $50.82 in morning trading. The stock has dropped sharply since the wildfires started on Jan. 7, although it's up about 30% over the past 12 months.
The insurance company on Friday said its total reinstatement premiums would so far be $101 million.
"The wildfires continue to burn, and it will be some time before the company has an estimate of the total losses caused by this event," the company said.
Overall, the L.A. wildfires are set to be the costliest blaze in U.S. history, according to analysts.
Total economic losses from the fires are now pegged at close to $50 billion, JPMorgan analyst Jimmy Bhullar has estimated.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
January 10, 2025 10:09 ET (15:09 GMT)
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