Insights
Insured natural catastrophe losses exceeded $100bn in 2025
Posted 19/12/2025 – Insights
Swiss Re has published a research report which suggests that insured losses from natural catastrophes in 2025 have exceeded USD 100bn for the sixth consecutive year. Of the estimated $107bn of insured losses, the largest individual event in 2025 was the Los Angeles (LA) wildfires costing $40bn. Yet again, the US Severe Convective Storms caused significant damage, which Swiss Re estimates at $50bn of insured losses, the third costliest year after 2023 and 2024. Although the Atlantic hurricane season was active, insured hurricane losses were relatively low because none made landfall in the US, with Hurricane Melissa being the costliest event at up to $2.5bn.
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This Swiss Re report highlights that 2025 was another year of elevated insured losses, totalling approximately $109bn. A significant share of these losses stemmed from the Los Angeles wildfires at the beginning of 2025, which caused unprecedented levels of destruction. Severe Convective Storm losses again exceeded $50bn, with both underwriters and Lloyd’s having taken note of their increased frequency and severity. For 2025, the industry has benefitted from the absence of US hurricanes making landfall, but the year was active with Hurricane Melissa having the highest windspeeds (252 mph) recorded. Encouragingly, underwriting actions taken in recent years with tighter terms and conditions are holding firm. Rates are now reducing but are coming off historical highs. As a result, we expect good profits to be realised for the 2025 calendar year and positive first forecasts from our syndicates for the 2025 year of account absent major loss activity in the first half of 2026.
