TheStreet’s Conway Gittens brings you the biggest news of the day, including the toll the California wildfires are taking on insurance companies.
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00:00The economic toll from the California wildfires is just starting to become clear. Allstate is the latest insurer out with numbers.
00:07The insurance company says it will pay out 1.1 billion dollars in insured claims.
00:12That's just a small fraction of the checks insurance companies will have to send out.
00:16According to CoreLogic, insured losses are expected to fall in between 35 billion and 45 billion dollars.
00:23Allstate will be looking to cover its payouts by limiting the number of policies within the state.
00:29And it's not alone. Other insurers are doing the same.
00:33In addition, insurance companies want regulators to approve higher premiums to match the higher risk of property damage due to natural disasters and climate change.
00:43State Farm, California's biggest insurer, wants a 22 percent emergency spike in insurance premiums.
00:49It has already paid out one billion dollars in insurance claims and expects that number to go up.
00:54Chubb Insurance put its payout at one and a half billion dollars.
00:58As for Allstate, the full impact of the California wildfires are yet to be realized.
01:04That 1.1 billion dollar number given out is just a preview released as part of Allstate's fourth quarter results.
01:11The wildfires took place in the first quarter of 2025.
01:15For all of 2024, Allstate posted an adjusted profit of 4.9 billion dollars, despite the checks it wrote to cover damages from Hurricanes Milton and Helene.
01:27Turning now to Thursday's market action, investors were a bit nervous ahead of the all-important jobs report.
01:33The data due out Friday will also include benchmark revisions for all the job numbers for 2024.
01:40Meanwhile, new applications for unemployment benefits are out.
01:43Jobless claims rose more than expected last week, but remain at a level which suggests the labor market is stuck in paralysis.
01:52That will do it for your daily briefing from the New York Stock Exchange.
01:55I'm Conway Giddens with The Street.
01:57Thanks for watching.