State Farm General, California's largest home insurer, estimates it will pay $7.6 billion to settle its Los Angeles fire claims but reinsurance will lower its losses to about $612 million, including its costs for bailing out the state's Fair Plan.

While continuing to be shrouded in controversy as it threatens to drop more policies if its California rate hike is rejected, State Farm reported a $5.3 billion net income in 2024, reversing a $6.3 billion net loss in 2023, driven by capital gains and a significant reduction in its pretax operating loss.

Insurer estimates $7.6 billion to settle its wildfire claims, mostly paid by reinsurance provided by its parent company.