Allstate Insurance says it will pay out $1.1 billion in claims caused by the wildfires that swept through Southern California in January.

Allstate’s liability is a small fraction of the total insurance claims from the California fires in January: They are expected to come from 16,600 properties and forecast to cost the industry between $35 billion to $45 billion, according to CoreLogic, a research firm that tracks the costs of catastrophes like fires and hurricanes.

The company announced the claims figure alongside its fourth-quarter earnings report late Wednesday, though the fires occurred in the first quarter and were not part of those financial results. Allstate recorded $2.1 billion in profit for the fourth quarter, which was up 34% from a year earlier and brought adjusted profit for 2024 to $4.9 billion. That growth came despite catastrophe claims losses of $315 million related to Hurricane Milton in the fourth quarter, and re-estimates for the cost of Hurricane Helene in September.

Source: FINANCE.YAHOO