(Reuters) – Shares of U.S. property and casualty insurers fell in premarket trading on Friday after wildfires threatening Los Angeles killed at least 10 people and consumed nearly 10,000 structures, with five fires on a third night.

The Palisades fire between Santa Monica and Malibu on the city’s western flank and the Eaton fire to the east near Pasadena are already the most destructive in Los Angeles history.

Insurers are expected to face billions of dollars in catastrophe-related claims from the disaster, which analysts estimate will be California’s costliest ever.

“We expect insured losses to run into the billions of dollars, given the high value of homes and businesses in the affected areas, and to cause large losses for P&C insurers with significant property and real estate market share commercial in Los Angeles,” Moody’s Ratings. he said in a note.

Mornginstar DBRS analysts pegged insured losses at more than $8 billion, according to preliminary estimates. JP Morgan expects losses to reach $10 billion.

Sector bell Travelers fell 4% before the bell. Mercury General fell 32%, while Allstate, Chubb and AIG fell between 4% and 6%.

European insurers were also down with Beazley, Lancashire and Hiscox down around 3%, the three biggest losers in UK listed large and mid-caps.

The Pacific Palisades area is one of the most expensive neighborhoods in the United States, home to Hollywood A-Listers and multi-million dollar mansions. Before this week’s disaster, its insurance costs were among the most affordable in the country, according to a Reuters analysis.

But that is likely to change after the scale of expected losses in the wildfires now ravaging Los Angeles, as well as regulatory changes enacted late last year, four analysts told Reuters earlier this week .

(Reporting by Manya Saini in Bangalore; Additional reporting by Sruthi Shankar; Editing by Krishna Chandra Eluri)