Germany's Munich Re expects about 1.2 billion euros ($1.26 billion) in claims resulting from the Los Angeles wildfires, it said on Wednesday, representing the biggest loss reported so far by a single European reinsurer for the January catastrophe.

Shares of Munich Re climbed on Wednesday after the German reinsurer stuck to its outlook, despite announcing hefty expected claims from California wildfires.

German reinsurer Munich Re on Wednesday said it expected claims of about 1.2 billion euros ($1.26 billion) as a result of the Los Angeles wildfires. The wildfires in January killed more than two dozen people and destroyed or damaged more than 16,

Munich Re estimates that devastating wildfires that struck southern California in January will result in $1.26 billion in claims for the company, it said as it reported fourth-quarter results.