State Farm's financial results improved in 2024, though the Bloomington-based company still posted an underwriting loss of over $6 billion.
State Farm released its annual financial results on Friday. State Farm says its core property-casualty business posted a $6.1 billion underwriting loss in 2024, much better than the $14.1 billion underwriting loss in 2023. That cut down operating losses from $8.5 billion last year to $111 million in 2024. State Farm said the improvement was due in part to “significant improvement in auto lines underwriting results which was partially offset by an increase in homeowners incurred catastrophe claims.”
This 2024 snapshot does not include the impact of the Southern California wildfires, which broke out in January. State Farm says it’s received more than 11,750 fire and auto claims so far and paid out nearly $2.2 billion to customers.
“After another year of catastrophe events, State Farm was there to help our customers recover from the unexpected and will continue to do so as we focus on our customers impacted by the devastating wildfires in California,” Mark Schwamberger, State Farm’s senior vice president, treasurer and chief financial officer, said in a statement. “Our customer-centered approach leads us to measure success in the number of promises kept. The financial strength of each affiliate is critical to our ability to keep those promises, and we will continue to take a state-specific approach in the way in which we operate.”
Overall, State Farm reported net income of $5.3 billion in 2024, compared to a net loss of $6.3 billion in 2023, largely due to $3 billion in realized capital gains.
Auto insurance is about 65% of the company’s core property-casualty business, with homeowners and other lines making up the rest. State Farm’s auto business posted an underwriting loss of $2.7 billion in 2024, down from $9.7 billion the year before. The rest of the property-casualty business lost $3.6 billion, down from $4.7 billion a year ago.
State Farm paid out $11.4 billion in catastrophic loss claims in 2024.
State Farm says it issued a record $122 billion in new life insurance policy volume in 2024. Life insurance was a moneymaker, a with net income of $1.7 billion.
The company says its net worth rose to $145.2 billion, up 7.7% from 2023. The company said that’s due to “an increase in the value of the (property-casualty) companies’ unaffiliated stock portfolio, driven by increases in the U.S. equities market, partially offset by the (property-casualty) group of companies pre-tax operating loss.”
State Farm is the largest auto and home insurer in the U.S. It is Bloomington-Normal’s largest employer.
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