State Farm to Have Underwriting Loss: State...

State Farm to Have Underwriting Loss: State Farm Insurance Group, the largest home insurer in California, said it will suffer an underwriting loss of about $1 billion after the twin disasters of the San Francisco earthquake and Hurricane Hugo. State Farm expects to pay out about $300 million to cover insured damage suffered in last Tuesday’s earthquake, said Ed Rust, president and chief executive of State Farm Mutual Automobile Insurance Co. But the total could go higher as damage appraisals continue over the coming weeks, he said.