State Farm shares $6.85 billion loss estimate from wildfires

According to a report by S&P, State Farm General’s initial wildfire loss estimates has reached $6.85 billion, prior to consideration of reinsurance.

Earlier this month, State Farm General said that it received more than 8,700 (Fire only) claims.

The bulk of the losses are from the company’s non-tenant homeowners’ policies, which the insurer estimates comprises 5,346 claims with the average cost per claim at $1.1 million. State Farm General estimated losses on its rental dwelling contracts at $586.7 million.

In a press release, State Farm has shared that its subsidiary, State Farm General, asked the California Department of Insurance to immediately approve interim rate increases, including 22% average for homeowners.