Wildfires that swept through parts of Los Angeles last month, causing estimated insured losses of up to $US35 billion ($56 billion), have been fully contained.

The Palisades and Eaton fires ignited on January 7 and became infernos that sped across drought-affected landscapes, driven by dry Santa Ana winds.

At least 29 people died and more than 16,000 structures were destroyed.

The California Department of Forestry and Fire Protection says on its website today that both blazes are now 100% contained. Their causes are still under investigation.

Data analytics group Verisk estimates insured losses at $US28-$US35 billion ($45-$56 billion), including cover provided by the state-backed California FAIR plan. The figures account for demand surge, debris removal and estimated insured take-up rates.  

Palisades fire losses are estimated at $US20-$US25 billion ($32-$40 billion) and Eaton fire losses at $US8-$US10 billion ($13-$16 billion). Most are for residential risks.

“The impacted areas from the Palisades fire include some of the highest property values in the country, and many of the policyholders have considerable contents exposure, including jewellery, fine art and other luxury goods,” Verisk says.

Moody’s RMS Event Response has described the disaster as the most destructive and multifaceted wildfire event in US history, with unprecedented levels of urban conflagration. On January 17 it estimated insured losses at $US20-$US30 billion ($32-$48 billion).

“The wildfires caused extensive damage beyond property to critical infrastructure, including water systems and other utilities, with potential economic impacts that could be several multiples of insured property losses,” Moody’s chief risk modelling officer Mohsen Rahnama said.

Catastrophe modelling group Karen Clark & Company estimates losses to residential, commercial and industrial properties and motor vehicles will be close to $US28 billion ($45 billion).  

“A primary area of uncertainty in the loss estimates is the proportion of homeowners and business owners in impacted areas who are insured,” it said.

S&P Global Ratings said in an early report that the disaster will have no major impact on earnings for global reinsurers.

“The wildfire represents the first major natural catastrophe loss in the year for the sector. However, it is still unclear how aggregate reinsurance coverage could be affected, given this will depend on developments over the remainder of the year,” insurance analyst Patricia Kwan said.