Mercury reports damage from Southern California wildfires

Mercury Insurance has reported preliminary information on the Southern California wildfires that began on January 7, 2025. The wind-driven event has caused significant damage, with expected losses surpassing Mercury’s $150 million reinsurance retention threshold.

The company’s reinsurance program provides $1.29 billion in per-occurrence limits after exceeding retention, covering both direct losses and California FAIR plan assessments. Reinstatement premiums for future events could total $101 million if the full limits are utilized.

Mercury adjusters are actively assisting customers, and claims guidance is available through its online portal. The full extent of losses will take time to assess as the wildfires continue to burn.