State Farm® Announces 2023 Financial Results

Bloomington, IL, February 29, 2024 — In 2023, State Farm property and casualty insurance companies experienced growth in policies while also reporting underwriting losses due to continued elevated claims severity and significant catastrophe activity, for both the auto and homeowners insurance companies. While State Farm experienced unfavorable operating results in 2023, State Farm Mutual Automobile Insurance Company reported a $3.5 billion increase in net worth and remains financially strong. The State Farm life insurance companies reported over $725 million in dividends to policyholders and issued a record $118 billion in new policy volume bringing the year-end 2023 individual life insurance in force to $1.1 trillion. As the number one Auto and Homeowners insurer in the U.S. and a leader in individual life insurance, State Farm is committed to serving its policyholders and remains a strong choice for insurance and financial services needs.

“While we improved overall auto lines profitability in 2023, our results remain below the level we expect and we’re taking a state-specific approach as we operate,” said Senior Vice President, Treasurer and Chief Financial Officer Mark Schwamberger. “Catastrophe losses were widespread in 2023, and our claims and operations team members, along with the State Farm independent contractor agents, responded throughout the year to help customers. State Farm Mutual Automobile Insurance Company remains financially strong, and it is that strength that allows us to handle uncertainty and serve more customers in more ways over the long term.”

The net worth for State Farm Mutual Automobile Insurance Company ended the year at $134.8 billion compared to $131.2 billion at year-end 2022. The change during 2023 includes an increase in the value of the P-C companies’ unaffiliated stock portfolio, driven by increases in the U.S. equities market, partially offset by the P-C group of companies pre-tax operating loss. The State Farm P-C group of companies reported earned premium of $87.6 billion and a combined underwriting loss of $14.1 billion. This result compared to an underwriting loss of $13.2 billion on earned premium of $74.3 billion in 2022. The change over 2022 reflects improvement in auto lines underwriting results which was offset by the significant increase in homeowners incurred catastrophe claims. The 2023 underwriting loss, combined with investment and other income of $5.6 billion, resulted in a P-C pre-tax operating loss of $8.5 billion, which compares to the $8.3 billion loss reported in 2022. Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was $104.2 billion for 2023 compared to $89.3 billion for 2022. State Farm reported a net loss of $6.3 billion in 2023 compared to a net loss of $6.7 billion in 2022.

The State Farm insurance operations consist of fourteen 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. State Farm provides insurance and financial services products across over 94 million policies and accounts. In addition, the State Farm group makes third party products available to meet a variety of customer needs including, but not limited to, annuities, banking, health, mutual funds and pet medical.

Auto – The State Farm auto insurance business represented 64 percent of the P-C companies’ combined net written premium. Earned premium was $56.1 billion. Incurred claims and loss adjustment expenses were $53.4 billion and all other underwriting expenses totaled $12.4 billion. The underwriting loss was $9.7 billion.

Comparable 2022 figures were: earned premium, $45.7 billion; incurred claims and loss adjustment expenses, $48.4 billion; all other underwriting expenses, $10.8 billion; underwriting loss, $13.4 billion.  

Homeowners, CMP, Other – The net written premium for the remainder of the State Farm P-C business represented 35 percent of the P-C companies’ combined net written premium. Earned premium was $30.5 billion. Incurred claims and loss adjustment expenses were $28.0 billion and all other underwriting expenses totaled $7.1 billion. The underwriting loss was $4.7 billion.

Comparable 2022 figures were: earned premium, $27.6 billion; incurred claims and loss adjustment expenses, $20.0 billion; all other underwriting expenses, $6.7 billion; underwriting gain, $849 million.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $106 million, excluding the change in the premium deficiency reserve. Net written premium was $729 million.

Comparable figures for 2022 were: underwriting loss, $81 million; net written premium, $723 million.

Life – In 2023, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $6.5 billion and $725 million in dividends to policyholders. Net income for 2023 was $1.2 billion. There was $1.15 trillion in individual life insurance in force at the end of 2023. 

Comparable 2022 figures were: premium income, $6.2 billion; dividends to policyholders, $603 million; net income, $588 million; individual life insurance in force, $1.10 trillion.

Investment Planning Services – Total assets under management for the Investment Planning Services operation at the end of 2023 were $13.8 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $41 million in 2023.

Comparable figures for 2022 were: total assets under management, $12.4 billion; net loss, $43 million.

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.

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.