FRANKFURT - 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 16,000 structures, charring an area bigger than Paris.    "They were clearly the most substantial wildfire losses in the history of the insurance industry," Munich Re said.

Munich Re, the world's largest reinsurer, said that its estimate had a high degree of uncertainty because the losses were complex.

The company provided the estimate as part of its quarterly earnings in which it posted a 2.5% fall in net profit in the fourth quarter, slightly worse than analysts had expected.

Net profit in the quarter was 979 million euros and compares with 1 billion euros a year ago. Analysts had expected net profit of 1.02 billion euros, according to a consensus forecast compiled by the company.

($1 = 0.9535 euros)