State Farm provides insurance and financial services products across more than 84 million policies and accounts.įinancial results for the State Farm affiliated companies are incorporated in the State Farm group’s financial results. Results in 2015 included $3.0 billion in realized capital gains due to two corporate mergers impacting stocks owned within the unaffiliated stock portfolio. State Farm reported net income of $0.4 billion in 2016, compared with $6.2 billion of net income in 2015. Total revenue, which includes premium revenue, earned investment income, and realized capital gains (losses) was $76.1 billion for 2016 compared with $75.7 billion for 2015. The increase includes a $4.2 billion increase related to the P/C companies’ unaffiliated stock portfolio, which is primarily invested in the U.S. The combined net worth for the State Farm group ended the year at $87.6 billion compared with $82.7 billion at year-end 2015. Analysts have reported that the auto line has been a drag on P/C insurers’ results. It joins GEICO, Travelers, Allstate, The Hartford and other insurers looking for ways to counter rising auto costs. State Farm is not alone in seeing deteriorating results in its auto insurance line.
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Last year was the first full year under Chief Executive Officer Michael Tipsord, who replaced Edward Rust in 2015. The underwriting loss was $7.0 billion.Ĭomparable 2015 figures were: earned premium, $36.3 billion incurred claims and loss adjustment expenses, $31.0 billion underwriting loss, $4.4 billion. Incurred claims and loss adjustment expenses were $35.8 billion. Earned premium was $38.8 billion, an increase of 6.9 percent from 2015. The 2016 underwriting loss, combined with investment and other income of $4.4 billion (up $0.4 billion from 2015), resulted in a P/C pre-tax operating loss of $1.2 billion.Īuto insurance business represents 63 percent of the P/C companies’ combined net written premium.