Farmers Insurance Projects $600 Million Loss from California Wildfires

The insurer's losses, partially offset by reinsurance, exclude an expected contribution to the FAIR Plan, as wildfire claims across the state reach historic levels.

• Farmers Insurance estimates a $600 million loss from the Los Angeles wildfires, accounting for reinsurance payments but excluding FAIR Plan contributions.
• The FAIR Plan, California's insurer of last resort, requires nearly $1 billion to cover claims, with assessments expected from licensed carriers like Farmers.
• The wildfires are projected to be the most expensive in U.S. history, with total insurance claims potentially reaching $45 billion.
• Farmers recently committed to expanding coverage in California, citing regulatory reforms allowing insurers to pass reinsurance costs to policyholders.
• Other major insurers, including State Farm, Allstate, and Mercury, have announced substantial losses, with some seeking rate increases or reducing coverage options in the state.

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