Verisk estimates insured losses from the Palisades and Eaton fires between $28 billion and $35 billion, primarily affecting residential properties.
Quiver AI Summary
Verisk's Extreme Event Solutions group estimates that insured losses from the recent Palisades and Eaton fires in California will range between $28 billion and $35 billion, primarily affecting residential properties. The Palisades fire alone is expected to account for $20 billion to $25 billion in losses, while the Eaton fire may contribute an additional $8 billion to $10 billion. Verisk's analysis includes factors such as demand surge, debris removal, and various types of coverage. The devastation caused by these wildfires highlights the need for improved disaster resilience strategies, as stated by Rob Newbold, president of Extreme Event Solutions. Additionally, Verisk is undergoing a review of its U.S. Wildfire Model, which aims to enhance insights into natural disaster risks, benefiting consumers, insurers, and regulators in California.
Potential Positives
- Verisk estimates insured industry losses from the Palisades and Eaton fires to be between USD 28 billion and USD 35 billion, highlighting the company's significant role in assessing large-scale economic impacts of natural disasters.
- The company was the first to request a formal review of its U.S. Wildfire Model by the California Department of Insurance, positioning itself as a leader in catastrophe modeling and enhancing its influence on regulations affecting the industry.
- By providing advanced data analytics and insights, Verisk helps communities rebuild and build resilience against catastrophic wildfires, underlining its commitment to social responsibility and community support.
Potential Negatives
- High estimated insured losses of USD 28 billion to USD 35 billion related to the Palisades and Eaton fires may indicate significant financial exposure and potential impacts on the company's reputation and future business operations.
- The exclusion of various loss types from the loss estimates, such as losses from smoke damage or uninsured properties, may raise concerns about the completeness and accuracy of the company's assessments.
- The announcement of a review of Verisk's U.S. Wildfire Model may suggest potential issues or challenges with their catastrophe modeling and could impact the company's credibility in disaster risk assessment.
FAQ
What are the estimated insured losses from the Palisades and Eaton fires?
Insured losses are estimated to be between USD 28 billion and USD 35 billion for both fires combined.
How much of the losses are attributed to the Palisades fire?
Insured losses from the Palisades fire are estimated to range between USD 20 billion and USD 25 billion.
What types of properties were primarily affected by these wildfires?
Most losses are to residential properties, including valuable contents like jewelry and fine art.
What is Verisk doing to mitigate risks from wildfires?
Verisk is advancing science and risk management to help communities build resilience against catastrophic wildfires.
What is the purpose of Verisk's U.S. Wildfire Model review?
The review aims to provide enhanced insights into natural disaster risks and improve insurance availability in California.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$VRSK Congressional Stock Trading
Members of Congress have traded $VRSK stock 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $VRSK stock by members of Congress over the last 6 months:
- REPRESENTATIVE RICK LARSEN purchased up to $15,000 on 01/07.
To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.
$VRSK Insider Trading Activity
$VRSK insiders have traded $VRSK stock on the open market 13 times in the past 6 months. Of those trades, 1 have been purchases and 12 have been sales.
Here’s a breakdown of recent trading of $VRSK stock by insiders over the last 6 months:
- DAVID J. GROVER (Chief Accounting Officer) sold 6,417 shares for an estimated $1,742,600
- LEE SHAVEL (Chief Executive Officer) has made 0 purchases and 4 sales selling 4,000 shares for an estimated $1,101,970.
- KATHY CARD BECKLES (Chief Legal Officer) sold 2,111 shares for an estimated $595,428
- BRUCE EDWARD HANSEN sold 1,179 shares for an estimated $321,642
- ELIZABETH MANN (Chief Financial Officer) has made 0 purchases and 5 sales selling 1,000 shares for an estimated $276,206.
- WENDY E LANE purchased 600 shares for an estimated $158,184
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$VRSK Hedge Fund Activity
We have seen 420 institutional investors add shares of $VRSK stock to their portfolio, and 424 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CITADEL ADVISORS LLC removed 1,206,835 shares (-97.3%) from their portfolio in Q3 2024, for an estimated $323,383,506
- BANK JULIUS BAER & CO. LTD, ZURICH added 684,454 shares (+4083.6%) to their portfolio in Q3 2024, for an estimated $183,406,293
- PRICE T ROWE ASSOCIATES INC /MD/ added 540,813 shares (+61.7%) to their portfolio in Q3 2024, for an estimated $144,916,251
- ALLIANCEBERNSTEIN L.P. added 477,004 shares (+11.0%) to their portfolio in Q3 2024, for an estimated $127,817,991
- D. E. SHAW & CO., INC. removed 425,962 shares (-54.3%) from their portfolio in Q3 2024, for an estimated $114,140,777
- GOLDMAN SACHS GROUP INC added 342,081 shares (+40.7%) to their portfolio in Q3 2024, for an estimated $91,664,024
- BARCLAYS PLC removed 337,594 shares (-44.6%) from their portfolio in Q3 2024, for an estimated $90,461,688
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
BOSTON, Jan. 22, 2025 (GLOBE NEWSWIRE) -- The Extreme Event Solutions group at Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, estimates that insured industry losses to property for the Palisades and Eaton fires together will fall between USD 28 billion and USD 35 billion. This estimate includes losses due to fire and is inclusive of losses to the California Fair Plan.
Of this total, Verisk estimates insured losses from the Palisades fire will range between USD 20 billion and USD 25 billion, and losses from the Eaton fire will range between USD 8 billion and USD 10 billion. Most of the losses are to residential risks.
"The ongoing devastation from these deadly wildfires is truly heartbreaking," said Rob Newbold, president of Extreme Event Solutions at Verisk. "We are advancing science and risk management to help communities build resilience against disasters like these catastrophic wildfires. The amount of data and insights to support mitigation efforts continues to grow, which can help inform how communities rebuild in the wake of this disaster."
The impacted areas from the Palisades fire include some of the highest property values in the country, and many of the policyholders have considerable contents exposure, including jewelry, fine art and other luxury goods.
Demand surge analysis was completed using historical construction cost data for the Los Angeles area (Los Angeles County and Santa Barbara County) using Verisk’s 360Value ® Quarterly Residential Replacement Cost Index (seasonally adjusted).
Given the large number of destroyed structures from these two events, and the need for complete rebuilding, it is likely that losses stemming from debris removal coverage will be non-trivial.
Included in this estimate are losses to residential, commercial, and industrial properties and automobiles for their building, contents, and time element coverages. This estimate accounts for demand surge, debris removal and estimated insured take-up rates.
Verisk’s loss estimates do not include:
- Losses from smoke damage
- Losses from the Hurst fire or other fires during this past month other than Palisades and Eaton
- Losses exacerbated by litigation, fraudulent assignment of benefits, or social inflation
- Losses from guaranteed replacement cost coverage
- Losses from ordinance or law coverage
- Losses to uninsured properties
- Losses to infrastructure
- Losses from extra-contractual obligations
- Losses from hazardous waste cleanup, vandalism, or civil commotion, whether directly or indirectly caused by the event
- Loss adjustment expenses
Update on Verisk U.S. Wildfire Model Review by California Department of Insurance
On January 2, Verisk announced that it was the first modeler to request a review of its U.S. Wildfire Model as part of California Insurance Commissioner Ricardo Lara’s, 'first of its kind' catastrophe modeling and ratemaking regulation, a central part of his Sustainable Insurance Strategy. As of January 16, Verisk’s petition for model review has been granted by the CDI. This marks the commencement of the next step and formal review.
The use of catastrophe models in California is expected to provide consumers, insurers, and regulators with enhanced insights into natural disaster risks and increased insurance availability across the state.
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About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by
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inclusive culture
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