Farmers Estimates $600M Loss from LA Wildfires

Farmers Insurance has announced an estimated loss of $600 million due to the recent Los Angeles wildfires, a figure that is net of its reinsurance coverage and excludes its share of losses from the California FAIR Plan. The wildfires are anticipated to be among the costliest in U.S. history, with overall insurance claims potentially reaching up to $45 billion. Multiple insurers have reported significant losses, with State Farm estimated to lose around $6.5 billion before reinsurance. Farmers attributed its relatively lower losses to a focused risk management approach and a strong capital base, and it plans to expand its coverage options in California. The company expects to pay approximately $250 million in reinstatement premiums as part of managing these losses. Overall, the wildfires have led to over $6.9 billion in claims filed by various policyholders across the state.