State Farm General said it will pay $7.6 billion to settle claims from last month’s firestorms in the Los Angeles area.

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.

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

State Farm General (SFG) has pegged its estimate of direct losses from the Los Angeles wildfires at about $7.6bn, including both reported and unreported claims. SFG, State Farm's California unit, reported that it has paid $1.75bn on around 9,500 claims filed for the LA wildfires in January.