Zurich Insurance reported slightly higher-than-expected annual operating profit on Thursday, as insurers ride out the impact of climate disasters and wars.

The fires that swept through Los Angeles in January will have deep and long-lasting effects on the state’s already stressed insurance market.The fires destroyed more than 16,000 structures and resulted in losses of as much as $164 billion,

The devastation caused by the twin blazes has raised fresh questions about whether the state — and its top insurance regulator, Ricardo Lara — have done enough to protect homeowners.

Zurich Insurance expects that the devastating wildfires that struck southern California in January will lead to $200 million in pretax losses, it said as it reported better-than-expected results for 2024.