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

ASE Instructor Conference Set for July 15-18 in Minneapolis

The conference hosts hundreds of high school and college instructors from auto, truck and collision repair programs nationwide.

Automotive, truck and collision repair instructors are encouraged to mark their calendars and register today for the 2024 ASE Instructor Training Conference July 15-18 at the Hyatt Regency Hotel in Minneapolis, Minn.

Presented by the ASE Education Foundation, the ASE Instructor Training Conference is the largest of its kind, hosting hundreds of high school and college instructors from auto, truck and collision repair programs nationwide.

CIF Provides Assistance to Injured Collision Technician

Collision technician Gary Noble of Louisville Collision Center has been out of work for over 15 weeks due to a major car accident.

Classic Collision Licenses Mitchell Cloud Estimating

The multi-site operator’s nearly 300 U.S. facilities can now leverage Mitchell’s technology to support its delivery of proper, safe and efficient collision repairs.

ProColor Collision Welcomes First East Coast Shop

The new location in Greensboro, N.C., is owned and operated by Russ Morgan, who has spent more than 30 years in the collision repair industry.

Tint World Recognized by Inc. Magazine

The company made the list of the Southeast region’s fastest-growing private companies.

Other Posts

ABPA Opposes Nebraska Anti-Aftermarket Parts Bill

The bill introduces restrictions on alternative parts when OEM repair procedures are mandated.

BodyShop Business Kicks Off 25th Annual Reader’s Choice Contest

Submit a question about some industry-related issue you want an answer to, and if it’s chosen, you could win $75!

WIN to Hold Annual Scholarship Walk at Upcoming Conference

The annual fundraiser supports WIN scholarships that are presented annually to deserving students enrolled in post-secondary collision repair technology programs.

Evercoat Partners with TechForce Foundation to Support Collision Education

The collaboration between Evercoat and TechForce Foundation will provide students with the resources and process knowledge needed to be workforce-ready.