Bermudian-based Lancashire Holdings Ltd, the global specialty insurer and reinsurer, has estimated that its aggregate net ultimate losses relating to last month’s wildfires in California will be in the range of $145 million to $165 million.

Lancashire said this estimate falls within the company’s modelled loss ranges for this type of catastrophe event.

It added that this estimate is undiscounted, after anticipated recoveries from Lancashire’s outwards reinsurance programme and the impact of outwards and inwards reinstatement premiums.

Alex Maloney, group chief executive, said: “Our thoughts are with all those affected by the recent wildfires which wrought such devastation in California.

“Events like this show the value of [insurance and reinsurance] products in both offering protection and in supporting people as they rebuild their lives.

“Given our strong earnings performance and capital generation in 2024 Lancashire remains extremely well capitalised to achieve its strategic ambitions.

“In addition, the aggregate reinsurance cover the company has in place to protect against the frequency of large catastrophe events should allow Lancashire to deliver an attractive return for shareholders in 2025.”

Mr Maloney said Lancashire will provide a further update on its position regarding these losses, and further guidance for 2025, when it announces its 2024 fiscal year results on March 6.

Lancashire said its preliminary estimate has been derived from a combination of market data and assumptions, a limited number of provisional loss advices, limited client loss data and modelled loss projections.