trending Market Intelligence /marketintelligence/en/news-insights/trending/i_5mj852hvdj6_kqfa7vua2 content esgSubNav
In This List

State Farm's P&C underwriting loss widens in 2017

Blog

The Big Picture 2022 Insurance Industry Outlook

Podcast

Next in Tech | Episode 37: Insurance impacts on technology and vice versa

Case Study

A Prestigious Global Business School Gains a Competitive Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage


State Farm's P&C underwriting loss widens in 2017

The State Farm Property and Casualty group of companies reported a combined underwriting loss of $6.5 billion in 2017 on earned premium of $63.9 billion, compared to an underwriting loss of $5.5 billion on earned premium of $61.7 billion in 2016.

The 2017 underwriting loss, combined with investment and other income of $4.8 billion, resulted in a pretax operating loss of $1.7 billion for the State Farm P&C companies. The underwriting loss in 2017 was driven by significant catastrophe losses.

The net worth for the State Farm group was $97.0 billion at the end of 2017, compared with $87.6 billion at year-end 2016.

Total revenue, including premium revenue, earned investment income, and realized capital gains was $78.3 billion in 2017, compared to $76.1 billion in 2016.

State Farm reported net income of $2.2 billion in 2017, compared to $400 million in 2016.

The State Farm auto insurance business earned premium of $41.6 billion in 2017, up from $38.8 billion in 2016. The underwriting loss was $2.8 billion in 2017, down from $7.0 billion in 2016.

State Farm's homeowners, commercial multiperil and other business line reported earned premium was $21.4 billion in 2017, compared to $22.1 billion in 2016. The underwriting loss was $2.8 billion in 2017, versus an underwriting gain of $2.0 billion in 2016.

State Farm Mutual Automobile Insurance Co.'s individual health insurance operations reported an underwriting loss of $71 million in 2017, excluding premium deficiency reserve, and net written premium was $691 million. This compared to an underwriting loss of $84 million and net written premium of $668 million in 2016.

In 2017, State Farm Life Insurance Co. and State Farm Life & Accident Assurance Co. reported premium income of $5.3 billion and net income of $492 million. This compared to premium income of $5.7 billion and net income of $562 million in 2016.

The State Farm insurance operations consist of 11 P&C companies and two life companies, each of which is managed on an individual affiliate level. The P&C companies are primarily engaged in automobile, health, homeowners, commercial multiple peril, and reinsurance lines of business. The life companies are primarily engaged in individual life insurance and annuity business.