Natural Disasters Cost the U.S. Economy a Record $126 Billion in Year’s First Half

California wildfires, Midwest tornadoes, and Mississippi floods conspired to cost the U.S. economy a record $126 billion in losses during the first half of 2025.

The year’s first half was the costliest on record for natural disasters in the U.S., according to a report from insurance broker Aon (AON). In fact, the $126 billion in U.S. natural-disaster losses through the end of June were triple the $41 billion annual average over the past 25 years.

Fires, flooding and tornadoes have led to more than 100 fatalities across America this year as weather grows more extreme and unpredictable, a situation that many scientists blame on climate change. And the record losses for this year do not include the floods that took place in Texas earlier in July.

Global Losses

Worldwide, there were $162 billion in losses from natural disasters during 2025’s first half, also above the annual average of $141 billion. Aon views all disasters that cause at least $25 million in losses, 10 deaths, or 50 injuries to be significant and worth recording.

Notable natural disasters outside the U.S. this year include a drought in Brazil, windstorms in Europe, and an earthquake in Myanmar that caused $12 billion in economic loss and killed nearly 5,500 people. Additionally, the Birch Glacier’s collapse in Switzerland erased most of the village of Blatten in May.

Looking ahead, the average forecast calls for about 15 tropical storms and eight hurricanes this autumn, which is also above the average seen most years.

Is AON Stock a Buy?

The stock of Aon has a consensus Moderate Buy rating among 13 Wall Street analysts. That rating is based on 10 Buy, two Hold, and one Sell recommendations issued in the last three months. The average AON price target of $411.27 implies 15.99% upside from current levels.

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