Farmers Insurance, the state’s second-largest home insurer, said it expects to lose at least$ 600 million from the Los Angeles fires, a substantially smaller figure than some other major insurers have announced.
The Los Angeles-based company  , said the figure , includes payments from its reinsurance program but not an expected assessment from the FAIR Plan, the state’s home insurer of last resort, which is backed by California’s licensed carriers and needs nearly$ 1 billion to help pay its claims.
Farmers claimed that its “focused method to overseeing their policy investment in the state, a powerful capital base, and a complete reinsurance program” reduced its losses, which included its distinct Farmers Insurance Exchange, Fire Insurance Exchange, and Truck Insurance Exchange companies.
Farmers had retreated from the country’s household insurance marketplace, limiting the number of guidelines it had matter, like different carriers have for the past few years. But in December it announced it had write , more house comprehensive policies , and take on new clients seeking apartments, landlords and other home protection.
It cited changes to the regulation and market changes that took effect this year. Included are provisions that let insurers cover the costs of reinsurance purchased from various insurers from California policyholders to lower probable damage costs following a catastrophic event like the Los Angeles fires.
The blazes are expected to be the most costly wildfires in the nation’s history, with insurers possibly paying , as much as$ 45 billion  , in claims. S&, P Global, a rating agency, anticipates a state-wide rate increase or a reduction in home healthcare choices.
State Farm, the largest apartment employer in California, has no announced its costs. But, S&, P Capital IQ estimates they may total$ 6.5 billion, earlier to insurance payments. The Bloomington, Ill. based employer is seeking a 22 % emergency price increase, but , was turned down , by express Insurance Commissioner Ricardo Lara unless the company may provide more data to support its demand.
Other insurers that have announced losses include , Allstate at$ 1.1 billion,  , Chubb at$ 1.5 billion  , and Travelers at ,$ 1.7 billion, a figure that includes it estimated FAIR Plan assessment.
Mercury Insurance, also based in Los Angeles, said its gross losses could total up to$ 2 billion but could , net under$ 200 million  , after reinsurance and possible recoveries from Southern California Edison, if the utility is found liable for having sparked Altadena’s Eaton fire.
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