Travelers expect California wildfires (NYSE:TRV) to cause $1.7 billion in disaster damage.

this Travelers Companies, Inc. TRV It was announced Tuesday that $1.7 billion in pre-tax disaster losses are expected to be collected in California wildfires that swept the state in January. After taxation, the estimated loss is $1.3 billion.

The insurer said the estimate includes losses in its personal and commercial sectors, as well as an assessment of the California Fair Plan, the state’s last resort. The recovery rate from reinsurance has been taken into account in the estimate.

Analysts expect the overall industry losses of wildfires could reach $30 billion. Other insurers have also reported significant impacts. Last week, Allstate said it expected to lose about $1.1 billion in pre-tax disaster due to reinsurance.

The Traveler’s announcement comes after a tough time for an insurer operating in California, with wildfire risks leading several companies to expand back coverage or increase premiums. The Fair Plan provides limited fire insurance for homeowners who do not have access to coverage elsewhere and may require insurance companies to help fund claims.

Travelers said it is actively working to process claims and assist affected policyholders. CEO Alan Schnitzer Recognizing the scale of the disaster points to the company’s commitment to customers and communities affected by the fire.

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