BLOOMINGTON, Ill., 01 March 2019 | 03:05 PM America/Chicago State Farm® Announces 2018 Financial Results In 2018, State Farm experienced a property-casualty underwriting gain, as well as increases in total revenue, net income and net worth. As the number one Auto and Homeowners insurer in the U.S., State Farm remains committed to serving its policyholders. The State Farm property-casualty (P-C) group of companies reported a combined underwriting gain of $1.7 billion in 2018 on earned premium of $65.2 billion, compared to an underwriting loss of $6.5 billion on earned premium of $63.9 billion in 2017. The 2018 underwriting gain, combined with investment and other income of $4.7 billion, resulted in a P-C pre-tax operating gain of $6.3 billion. The underwriting gain in 2018 was driven by lower losses, which included a decrease in catastrophe losses compared to 2017. The net worth for the State Farm group ended the year at $100.9 billion compared with $97.0 billion at year-end 2017. The increase was primarily due to the P-C pre-tax operating gain, which was partially offset by a decrease in the value of the P-C companies’ unaffiliated stock portfolio, driven by declines in the U.S. equities market. “As a mutual company, we strive to achieve results that allow us to maintain the financial strength necessary to serve our customers and deliver on the promises we make to be there when the unexpected happens,” said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney. “While 2018 was a profitable year for State Farm, we view our financial results over a longer period of time. Over the last three years, we have increased our financial strength even with a combined underwriting loss, all while helping millions of our customers recover from the unexpected and live life confidently with the protection that we provide. We have been able to achieve these results because we manage our business responsibly for the long-term, and our agents, their teams and our employees are committed to serving our customers and our communities.” Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was $81.7 billion for 2018 compared to $78.3 billion for 2017. State Farm reported net income of $8.8 billion in 2018, compared to $2.2 billion of net income in 2017. The State Farm insurance operations consist of eleven 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 (CMP) and reinsurance lines of business. The life companies are primarily engaged in individual life insurance and annuity business. The State Farm group also provides banking products and makes mutual funds available through affiliated companies. State Farm provides insurance and financial services products across nearly 83 million policies and accounts. Auto – The State Farm auto insurance business represented 65 percent of the P-C companies’ combined net written premium. Earned premium was $42.7 billion. Incurred claims and loss adjustment expenses were $31.2 billion and all other underwriting expenses totaled $10.4 billion. The underwriting gain was $1.1 billion. Comparable 2017 figures were: earned premium, $41.6 billion; incurred claims and loss adjustment expenses, $34.2 billion; all other underwriting expenses, $10.2 billion; underwriting loss, $2.8 billion. Homeowners, CMP, Other – The net written premium for State Farm’s remaining P-C business represented 34 percent of the P-C companies’ combined net written premium. Earned premium was $21.6 billion. Incurred claims and loss adjustment expenses were $15.0 billion and all other underwriting expenses totaled $5.7 billion. The underwriting gain was $928 million. Comparable 2017 figures were: earned premium, $21.4 billion; incurred claims and loss adjustment expenses, $18.6 billion; all other underwriting expenses, $5.6 billion; underwriting loss, $2.8 billion. Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $91 million, excluding the change in the premium deficiency reserve. Net written premium was $703 million. Comparable figures for 2017 were: underwriting loss, $71 million; net written premium, $691 million. Life – In 2018, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.4 billion and $577 million in dividends to policyholders. Net income for 2018 was $706 million. There was $926.7 billion in total life insurance in force at the end of 2018. Comparable 2017 figures were: premium income, $5.3 billion; dividends to policyholders, $578 million; net income, $492 million; total life insurance in force, $901.7 billion. State Farm Bank® – Net income in 2018 was $35 million and total assets for State Farm Bank, F.S.B. were $16.9 billion as of year-end 2018. Comparable figures for 2017 were: net loss, $1 million; total assets, $16.7 billion. Investment Planning Services – Total assets under management for the Investment Planning Services operation at the end of 2018 were $10.7 billion, compared with $13.0 billion at the end of 2017. State Farm VP Management Corp. and State Farm Investment Management Corp. reported combined net income of $7 million in 2018, following net income of $5 million in 2017. Although financial information is presented on a group/line of business basis, State Farm Mutual Automobile Insurance Company and each of its affiliates must meet solvency and regulatory requirements on an individual entity-by-entity basis without regard to the solvency or financial condition of any other affiliated entity.State Farm Bank, Bloomington, Illinois, is a Member FDIC and an Equal Housing Lender. Insurance and securities products offered by affiliated companies of State Farm Bank are not FDIC insured, are not guaranteed by State Farm Bank and are subject to investment risk, including possible loss of principal invested.Securities distributed by State Farm VP Management Corp.State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products. Neither State Farm nor its agents provide investment, tax, or legal advice.