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 said its "focused approach to overseeing their coverage portfolio in the state, a strong capital base, and a comprehensive reinsurance program" minimized its losses, which include its separate Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange companies.

Like other carriers over the past several years, Farmers had retreated from the state's home insurance market, limiting the number of policies it would issue. But in December it announced it would write more home insurance policies and take on new customers seeking condo, renters and other property coverage.

It cited improvements in the market and regulatory reforms that went into effect this year. They include allowing insurers to charge their California policyholders for the costs of reinsurance, which is acquired from other insurers to limit potential damage costs after a catastrophic event such as the L.A. 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. Ratings agency S&P Global expects it to raise property insurance rates or reduce coverage options in the state.

State Farm, the largest home insurer in California, has not announced its losses. However, S&P Capital IQ estimates they will total $6.5 billion, prior to reinsurance payments. The Bloomington, Ill.-based insurer is seeking a 22% emergency rate increase, but was turned down by state Insurance Commissioner Ricardo Lara unless the company can provide additional data to support its request.

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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