Allstate said the wildfires blazed through Southern California last month will bring the insurance company a sizable loss – $1.1 billion.

Allstate insurance said it expects a $1.1 billion loss from claims caused by the wildfires that swept through Southern California in January

In the fourth quarter, catastrophe losses took $315 million out of Allstate’s homeowners insurance business, up from $21 million the year before.

That’s enough to kick the plan’s strained finances further into crisis mode, increasing the chances that homeowners statewide will see insurance costs rise.

Allstate is anticipating its losses from the recent California wildfires to be about $1.1bn, pre-tax, net of reinsurance, the company disclosed in its Q4 2024 earnings report. The net figure reflects a “decision to reduce market share beginning in 2007 and a comprehensive reinsurance program,” president and CEO Tom Wilkins said in the statement.

The economic toll from the California wildfires is just starting to become clear. Allstate is the latest insurer out with numbers. The insurance company says it will pay out $1.1 billion in insured claims.