State Farm says it will pay $7.6 billion for L.A. fires but reinsurance will slash losses

State Farm General, California's largest home insurer, estimated Tuesday that it will cost $7.6 billion to settle its Los Angeles- area fire claims, but it said reinsurance will lower its losses to about $612 million. That reinsurance will lower the losses State Farm General must absorb to $212 million. State Farm General released its loss figures one day before…