Insurer Beazley’s shares weakened on Thursday after it forecast a $40 million (£31 million) loss from the California wildfires which were raging in the US last month.
The devastating fires have been the west coast State’s deadliest on record, with 85 people killed in the Camp fire alone.
The blazes have also attracted significant attention from the world’s media as Hollywood celebrities, including singers Neil Young, Miley Cyrus and actor Gerard Butler, losing their homes.
Moody’s has estimated total insured losses at between $10 billion and $15 billion but said losses would be “manageable” for the industry.
The Beazley loss, which is net of reinsurance, is around 4% of its typical half-year losses but UBS pointed out it was at the high end of a $30 million to $40 million range.
Returns on money invested in the market were $27 million, higher than the $8 million seen in the first half but still below expectations. The shares fell 1.3%, or 7p, to 535.5p.
The Lloyd’s of London insurer has also appointed Christine LaSala as senior independent director, taking over from George Blunden next year.
