Lloyd's of London suffers $2.3bn hit from Los Angeles wildfires as profits fall 10%

Lloyd's of London expects losses of $2.3bn (£1.8bn) from the California wildfires that ravaged Los Angeles this year, but fine art losses were limited because rich residents took their prize possessions with them.

- Julia Kollewe

The Eaton and Palisades blazes in January killed 29 people and were only fully contained after 24 days, having burned more than 14,973 hectares (37,000 acres) and destroyed more than 16,000 buildings.

The world's oldest insurance market reported a 10% drop in annual pre-tax profits, to £9.6bn, as part of a trading update, before the full results on 20 March.

While it will not be included in the 2024 results, Lloyd's currently estimates the net loss to the market from the California wildfires to be about $2.3bn.

Burkhard Keese, the chief financial officer, said: "We would like to extend our deepest sympathies to those affected by the California fires earlier this year. Although we are still assessing the full impact, we do not expect this to be a capital event."