Lancashire Holdings Ltd (AIM:LRE, OTC:LCSHF) shares fell 5.9% after it announced its estimates for losses from wildfires in California.
The FTSE 250-listed group calculated aggregate net ultimate losses relating to the wildfires last month would be in the range of $145 million to $165 million.
"This estimate falls within the company's modelled loss ranges for this type of catastrophe event," it said, adding that the estimate is undiscounted, after anticipated recoveries from its outwards reinsurance programme and the impact of outwards and inwards reinstatement premiums.
Chief executive Alex Maloney said: "Our thoughts are with all those affected by the recent wildfires which wrought such devastation in California.
"Events like this show the value of (re)insurance products in both offering protection and in supporting people as they rebuild their lives."
He said the company's strong earnings performance and capital generation in 2024 means Lancashire "remains extremely well capitalised to achieve its strategic ambitions" and its reinsurance cover should allow it to deliver "an attractive return for shareholders" this year.
Full-year results are due in early March.