Fairfax Financial makes $1.4 million donation to LA wildfire relief efforts

Losses are mounting as fires continue to burn

Fairfax Financial makes $1.4 million donation to LA wildfire relief efforts

Catastrophe & Flood

By Josh Recamara

Fairfax Financial Holdings Limited has donated US$1 million to the American Red Cross for relief efforts in the southern California wildfires.

The fires have killed at least 25 people and have burned through 40,000 acres in the Greater Los Angeles area. As of Tuesday, the containment of the Palisades and Eaton fires stood at 17% and 35%, respectively, according to California’s Department of Forestry and Fire Protection. Reports said affected counties remain braced for “extremely critical fire conditions” as winds could intensify the blazes.

Analysts from Keefe Bruyette & Woods have estimated total losses for the insurance industry due to the Los Angeles wildfires could be up to US$40 billion, almost double their most optimistic scenario, implying insured losses of US$25 billion. Wells Fargo & Co and Goldman Sachs analysts expect insured losses of as much as US$30 billion.

“So many people in Southern California are having to cope with trauma and severe damage to their communities and will have to begin rebuilding their lives after this devastation,” Fairfax chairman and chief executive Prem Watsa said. “Fairfax wants to stand among all those individuals and companies who are extending themselves to provide support to the residents of the affected communities across Southern California.”

Fairfax is a holding company with subsidiaries focused on property and casualty insurance, reinsurance, and investment management.

Last year, the company also made a US$1 million donation to the American Red Cross to help the recovery efforts of those affected by hurricanes Helene and Milton in the Southeastern part of the US.

Got any thoughts or personal experiences related to the relief efforts for the LA wildfire victims? Please don’t hesitate to share them below.

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