Hamilton, Bermuda (May 08, 2025) — The Association of Bermuda Insurers and Reinsurers (ABIR) is proud to add its decades-long track record of being there for Americans in their time of greatest need, as ABIR members provide billions of dollars in claims to support the recovery from the January 2025 wildfires in Southern California.

According to data collected by the Bermuda Monetary Authority (BMA), Bermuda’s re/insurers expect to pay nearly $10 billion in gross claims to US policyholders and cedants — as much as 30% of estimated insured losses — following the fatalities, devastation of property and disruption of livelihoods caused by the Eaton and Palisades fires, the most expensive wildfires in US history. Recovery funds from Bermuda are set to be higher still, with added contributions likely from Bermuda’s industry-leading insurance-linked securities and catastrophe bond market.

Catastrophe risk modelers and analysts have estimated total insured losses from the California wildfires of at least $30 billion, while economic loss estimates are as high as $275 billion. Insured loss estimates include property damage, evacuation, business interruption and additional living expenses across residential, commercial and industrial lines, as well as reconstruction costs.

Bermuda is a global powerhouse of risk capacity, which supports the stability, affordability and availability of insurance coverage around the world. ABIR members can withstand large losses from natural disasters, because they diversify their risk exposures. Their business model involves pooling different global risks, covering perils ranging from US hurricanes to Japanese typhoons and Latin American earthquakes.

Bermuda re/insurers’ resilience was underlined by credit ratings agency Fitch, which stated in a report in March that wildfire losses within the group “may pressure earnings but will not affect ratings, given ample capital levels”.

Mark Cloutier, Executive Chair of Aspen Insurance Group and Chair of ABIR, said: “For more than 30 years, Bermuda re/insurers have been there for American families, businesses and communities in their darkest hour. ABIR members are proud of their role as reliable partners, delivering claims payments rapidly to help communities rebuild from disaster.

John Huff, CEO of ABIR, noted: “The protection gap between total economic losses and insured losses remains a serious concern. Events like the California fires highlight opportunities for greater public-private cooperation to expand private insurance coverage, leaving taxpayers to bear less of the risk burden.”

ABIR also advocates fire risk mitigation measures, including building hardening, which have the potential to significantly reduce losses and help to lower insurance premiums. In 2021, ABIR signed onto the Insurers’ Principles for Climate Change Adaptation, drawn up by the Insurance Institute for Business & Home Safety (IBHS), which outline active steps that that can be taken to improve the resilience of American homes, businesses and communities.

Huff added: “With an established track record as the best place to put risk capital to work and an industry-leading talent base, Bermuda is well positioned to find solutions to the largest and most complex global risks. We are committed to strengthening Bermuda’s longstanding trading relationship with the US, and to be ready to respond when our American partners need us most.”

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About ABIR: The Association of Bermuda Insurers & Reinsurers (ABIR), which represents Bermuda’s major property and casualty insurers and reinsurers doing business in 150 countries, was founded in 1993. For three decades, the Bermuda market’s risk-bearing capacity has played a key role in enabling insurance to be accessible and affordable, to the benefit of consumers around the world. Bermuda is an internationally recognized center of global expertise on underwriting for catastrophe, climate, cyber, mortgage & credit risk transfer products, along with other specialty insurance and reinsurance. For more information, please visit www.abir.bm or follow us on X @ABIR_Bermuda