Insurer AIG Reports Profit Dip Due to LA County Wildfire Losses

Wildfire related payouts totaled $460 million as the insurance sector overall deals with increased claims due to natural disasters.

Firefighters work near a burned church in the Pacific Palisades neighborhood of Los Angeles on Jan. 10, 2025. David Ryder/Reuters

American International Group Inc. (AIG) revealed a decline in first-quarter profits Thursday, citing considerable payouts stemming from the Los Angeles County wildfires in January.

The multinational finance and insurance corporation reported $525 million in total catastrophe-related charges in the quarter, with $460 million of those losses a direct result of the Los Angeles County fires, in which at least 30 lives were lost and more than 16,000 buildings were destroyed.