LA Fires Push Insurers’ 2025 Disaster Losses to $107 Billion

Even with no hurricanes making landfall in the U.S. in 2025, insured losses from global natural catastrophes surpassed the $100 billion mark for the sixth consecutive year, according to an analysis by Swiss Re Institute, the research arm of the reinsurance company.

The $107 billion estimate is 24% lower than last year, when Hurricanes Helene and Milton hit the U.S. back to back. Nevertheless, it shows that extensive property damage from weather volatility, fueled by climate change, has become the new normal.

This year’s $100-billion-plus tally “reminds us that elevated natural catastrophe losses are no longer outliers but the new baseline,” Monica Ningen, Swiss Re’s CEO of US Property and Casualty, said in a statement. “It’s critical we double down on investing in resilience and adaptation so communities can be better prepared for the future.”

Although the US was spared hurricanes this year, the January fires that ravaged the Los Angeles neighborhoods of Pacific Palisades and Altadena accrued $40 billion in insured losses, making them together the costliest-ever wildfire event globally.

Following a multi-year trend, severe convective storms (thunderstorms) also racked up major losses, coming to roughly $50 billion. Europe saw damaging hail storms in the early summer. But most of the insured storm losses occurred in the U.S. and were the result of tornadoes in March and May.

The US is the world’s biggest insurance market and experiences frequent extreme weather, and therefore saw the lion’s share of insured losses — $89 billion. Insured losses make up only a share of the total economic losses from catastrophes. Those came to $220 billion in 2025, according to Swiss Re.

Catastrophe damages outside the U.S. are less likely to be covered by insurance even if they are economically devastating. Hurricane Melissa, a Category 5 storm that pummeled Jamaica at the end of October, brought about only $2.5 billion in insured losses.

A summer earthquake in Russia and recent floods in Southeast Asia also contributed to the annual toll.

Top photo: A home damaged by a May tornado in St. Louis, Missouri, pictured on Sept. 20, 2025. Photographer: Eric Lee/Bloomberg.