US Stock Market Move | Los Angeles fire causes widespread damage, insurance sector plunges.

On Friday, as the destruction caused by the Los Angeles fire spread, insurance companies related to the California real estate market saw a significant sell-off of their stocks. Allstate Corporation (ALL.US) fell more than 4%, Chubb Limited (CB.US) fell more than 3.6%, Travelers Property Casualty Corporation (TRV.US) fell more than 3%, and American International Group, Inc. (AIG.US) fell more than 1.5%. According to JPMorgan's data, Allstate Corporation, Chubb, and Travelers Property Casualty Corporation are the three insurance companies most susceptible to losses from fire insurance. The Wall Street company pointed out that due to Chubb's focus on high net worth assets in the Los Angeles area, its risk exposure may be particularly high. The destructive fire that occurred in Los Angeles this week may become the most costly fire in California history. According to JPMorgan's estimates on Thursday, the insurance losses caused by this week's fires may exceed $20 billion. If the fires continue to spread, the estimated losses may be even higher.