State Farm’s Net Worth Nearly $100 Billion Despite 2017 Underwriting Loss

State Farm’s Net Worth Nearly $100 Billion Despite 2017 Underwriting Loss

State Farm’s property-casualty underwriting loss widened last year. The nation’s largest insurer reported a $6.5 billion underwriting loss in 2017, compared to $5.5 billion in 2016.

State Farm

State Farm’s property-casualty underwriting loss widened last year. The nation’s largest insurer reported a $6.5 billion underwriting loss in 2017, compared to $5.5 billion in 2016.

The figure includes a $2.8 billion underwriting loss for State Farm’s auto insurance business.

Overall, the insurer reported a pre-tax operating loss of $1.7 billion for its 11 property-casualty businesses, on $78.3 billion of revenue (up from $76.1 billion in 2016).

Net income grew from $0.4 billion in 2016 to $2.2 billion in 2017.

“In 2017, State Farm helped our customers recover from unexpected losses, including several catastrophic events,” said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney. “While we had operating losses for the year, we are built to handle these events and we continue to be ‘good neighbors’ and have the financial resources to be there in our customers’ time of need.”

Despite the underwriting losses, State Farm’s net worth in 2017 grew to $97 billion, up from $87.6 billion in 2016. State Farm attributed the growth to gains in its stock portfolio and the revised corporate tax rate.

Earned premium increased to $63.9 billion, up from $61.7 billion in 2016.

“Our employees, agents and agent team members are making significant changes and process improvements across our company to better serve our customers,” Farney added. “We will continue becoming a leaner and stronger company in our pursuit of helping customers recover from the unexpected and being there to help life go right.”

 

You May Also Like

NABC Donates Recycled Ride to Deserving Las Vegas Family

The NABC, GEICO and Caliber Collision recently donated a refurbished 2019 Toyota Camry to a Las Vegas resident and his adopted family.

The National Auto Body Council NABC), along with GEICO and Caliber Collision, recently donated a refurbished 2019 Toyota Camry to a Las Vegas resident and his adopted family during the pre-race festivities of the Pennzoil 400 at Las Vegas Motor Speedway. The donation was made via the NABC's Recycled Rides program.

Dent Wizard Hires New Senior VP of Strategic Growth & Development

Adrian Gonzalez will be charged with driving growth through mergers and acquisitions.

CCC Report Analyzes Labor Pressures, Vehicle Complexity

Report shows advanced technology is contributing to costlier repairs, higher claims costs and longer cycle times.

Crash Champions Continues Steady Expansion Across Idaho

Crash Champions has announced the acquisition of Hoffman Auto Body in Boise, Idaho.

NABC Donates Recycled Ride to Tucson, Ariz. Family

The NABC, Allstate, Maaco and  Meineke Car Care recently donated a refurbished vehicle to a deserving Tucson, Ariz.-area mom.

Other Posts

ASE Practice Tests Available Online

ASE is encouraging those pursuing certification to take the official practice tests as part of their test preparation process.

Corby’s Collision Center: Since 1942

Bentley (Bud) and Evelyn Corby started Corby’s in a little gas station in Honeoye Falls, N.Y.

CIF Announces Enterprise as Repeat Annual Donor

Enterprise has donated for the fourth consecutive time at the Urgent Care (second highest) tier.

NABC Donates Recycled Ride to Central Georgia Mom

The NAB), GEICO and Five Star Collision Center-Wimbish recently donated a refurbished vehicle to a deserving mother of four.