State Farm – For The Record

For The Record offers clear, easy-to-understand information on important insurance topics. It is a space for us to communicate facts and perspective directly with our customers and others.

Topics

State Farm Statement on Oklahoma District Court Order

Oklahoma Media Outlet Leaves Out State Farm’s Perspective

Independent Contractor Agents Remain Important Part of State Farm® Future

State Farm Corrects the Record on Claims Closed Without Payment

State Farm General Rejects Broad Allegations of Wildfire Mishandling

State Farm is There for our Missouri Customers

State Farm Response to NBC Nightly News Story in Oklahoma

New Yorkers Deserve a Path to Lower Auto Insurance Premiums

Oklahoma Homeowners Insurance

State Farm Responds to LA County Investigation

California Groups & Media Choose Criticism over Constructive Solutions

Correcting the Record - Florida Claims

Failed Rate Regulation Bill Would Harm Illinois Insurance Customers

Florida Efforts to Combat Legal System Abuse Lowering Costs for Customers

Illinois Attorney General Lawsuit v. State Farm

State Farm Announces 2024 Financial Results

Wall Street Journal Mischaracterizes California Operations

September 1, 2026

State Farm Statement on Oklahoma District Court Order

State Farm is committed to meeting the needs of our policyholders in Oklahoma, and we’re proud of our team’s work to help communities recover after disaster strikes. Over the past two years alone, State Farm has paid more than $1 billion to Oklahoma customers for wind and hail damage. By contrast, the number of bad-faith lawsuits currently pending in Oklahoma is equivalent to approximately 1% of the roughly 30,000 residential and commercial claims State Farm has responded to each year, on average, over the past five years. State Farm takes customer concerns seriously, including concerns raised in litigation. Bad-faith lawsuits involve serious allegations, but are only that, allegations, and should be addressed through the legal process.

State Farm provides the benefits available to individual customers under their policies. A court ruling on document confidentiality during litigation does not undermine that fact. We continuously seek to enhance our processes to serve customers consistent with our commitments. Each claim is fairly and diligently evaluated based on its specific facts.

Efforts by trial lawyers to turn disputed allegations into broad, misleading conclusions about State Farm’s claims practices create unwarranted confusion for customers, agents, and communities that depend on a strong and stable insurance market after severe weather. State Farm will continue addressing these matters through the appropriate legal processes while remaining focused on delivering reliable support to Oklahomans.

August 4, 2026

Missing Context: Oklahoma Media Outlet Leaves Out State Farm’s Perspective

At Issue: Oklahoma media outlet Oklahoma Watch is amplifying allegations made by lawyers suing State Farm while limiting readers' access to State Farm's perspective. The reports lean heavily on high-volume plaintiff attorneys, contractors, and public adjusters as “experts,” and treat political commentary as claims-handling expertise, while downplaying the fact that these claims are still being litigated. These matters involve pending litigation. State Farm is limited in what it can discuss publicly and has provided written responses rather than participating in live interviews. Oklahoma Watch has declined to publish those responses. However, the outlet has relied on email-sourced comments in other reporting, creating an inconsistent standard that leaves readers with an incomplete picture of the matter.

Why It Matters: Oklahomans deserve reporting that clearly separates allegations from proven facts and includes relevant context from all sides. When coverage becomes a steady drumbeat of one perspective, it fuels distrust and confusion - at a time when people need reliable protection, and Oklahoma needs a strong, solvent insurance market that can pay claims after the next storm.

For The Record:

We responded consistently and in writing. State Farm regularly provided clear, fact-based written responses and offered context. Oklahoma Watch chose not to include those responses, stating it does not publish prepared statements and prefers live, back-and-forth interviews.
That approach creates a predictable imbalance. When only certain voices are repeatedly platformed, especially those positioned as “claims experts” who have financial incentives (some attorneys, contractors, and public adjusters) or political incentives (public officials) - readers are steered toward a conclusion before the facts are fully presented.
These matters involve pending litigation. We can’t comment publicly on the specifics of any individual case, even if someone else involved chooses to speak with the media. Court rules and state and federal privacy laws require all parties to handle information responsibly, and we won’t litigate individual claims in the press.
We pay claims in Oklahoma. Over the past two years, State Farm has paid more than $1 billion to Oklahoma customers for wind and hail damage. Oklahoma experiences some of the highest wind and hail losses in the country. If we owe it, we pay it.
The real problem requires real solutions. Rising costs are driven by inflation and more weather-related losses. Progress means stronger home and community resilience measures, not sensational narratives.
We are here, we are local, and we care. More than 300 local State Farm agents, their teams, and State Farm employees serve millions of customers across Oklahoma, and we remain committed to working with the Oklahoma Department of Insurance to benefit Oklahoma customers.

We take every claim seriously, we review concerns carefully, and we work to pay all benefits a customer is entitled to under the policy. If a customer has questions about their claim, we encourage them to contact their State Farm agent or claim representative so we can review their individual situation and help answer their questions.

Resources:
Understanding the Issues in Oklahoma

State Farm – For The Record: State Farm Response to NBC Nightly News Story in Oklahoma

State Farm – For The Record: Oklahoma Homeowners Insurance

State Farm® in Oklahoma Fact Sheet

What Is a Mutual Insurance Company? - State Farm®

Independent Contractor Agents Remain Important Part of State Farm® Future

At Issue: State Farm is updating the independent contractor agent model as part of our Next Gen Good Neighbor vision and Human + Digital approach. Some public discussion has raised questions about what these updates mean for agents, customers, and the future of the State Farm agent relationship.

Why It Matters: Customers continue to value personal relationships with local agents, while also expecting faster, simpler service and competitive prices. To keep serving customers well for the next century, State Farm must evolve in ways that strengthen the customer experience, support local agency relationships, and help agents meet more customer needs.

For The Record: Independent contractor agents remain an important part of the State Farm future. The State Farm agency model, with agents serving customers in neighborhoods across the country, has been a cornerstone of our leadership in the insurance industry and continues to be central to how we serve customers.

State Farm will continue to appoint new agents and support ambitious team members in existing agencies who want to launch their own agencies through the Agent Aspirants program.

These updates are designed to help agents and State Farm work more effectively together to improve the customer experience, serve more customers in more ways, and deliver more competitive prices. The updated agreement includes one consistent compensation structure across agents, providing greater clarity and helping align agent engagement with the expanding needs of customers.

Being a State Farm agent remains a world-class entrepreneurial opportunity: the freedom to operate an independent small business backed by an iconic national brand. Agent results can vary based on performance and individual circumstances, but the overall opportunity remains focused on serving more customers, improving customer experience and supporting competitive prices.

Over the next several months, each agent can choose whether to sign the updated agreement. Agents who decide not to move forward may apply to be considered for a transition benefit.

State Farm is also providing resources to help agents evaluate health coverage options. The complexities and changing nature of the health insurance market and related regulations make it exceptionally challenging to provide independent contractors with a modern benefits offering.

Customer policies and coverage are not affected by these changes.

June 1, 2026

State Farm Corrects the Record on Claims Closed Without Payment

At Issue: The Wall Street Journal recently published a story suggesting that nearly half of homeowners insurance claims end with “zero payout,” leaving readers with the impression that insurers are increasingly refusing to pay valid claims. That framing is grossly misleading. The article interprets claims data contrary to important context and relies on anecdotes to support a broader narrative that the facts don’t support.

Why it Matters: Consumers deserve a clear and accurate understanding of how insurance claims work. A claim closed without payment is not the same as a denial. When people are dealing with the stress of damage to their homes, clear information matters. Stories that misrepresent insurance create unnecessary confusion when customers need clarity most.

For the Record: The article’s main mistake is treating every claim closed without payment as if it was denied. That is not how insurance claims work.

A claim can be closed without payment for many reasons. For example, the damage may be less than the customer’s deductible, the customer may withdraw the claim, a duplicate claim may be combined with another, or the loss may not be covered by the policy. After major disasters, some homeowners file claims simply to document damage while they apply for federal disaster assistance, even if their homeowners policy does not cover that type of damage.

The story understates the role of deductibles. Many customers choose higher deductibles to help lower their premiums. After a storm, a customer may have damage, but if the repair cost is less than the deductible, there may be no payment from the insurer. That does not mean the claim was mishandled or wrongly denied.

Flood damage is another key issue that the article glosses over. Standard homeowners insurance usually does not provide flood coverage, which can be purchased separately through the National Flood Insurance Program (NFIP). After a disaster, customers may still contact their insurance company to report or document flood-related damage while pursuing federal assistance. This may show up in insurance reporting as a claim closed without payment.

The article also blurs the difference between a contractor’s estimate and what an insurance policy covers. A contractor may recommend a full roof replacement after a storm, especially if the roof is older or already worn. However, the claim payment is based on the facts and the coverage that applies under the policy.

At State Farm, we pay what we owe under the policy. When coverage does not apply, we explain why.

Customers deserve a clear and complete explanation of how claims work, not a narrative that treats every claim closed without payment as a denial or evidence of insurer misconduct.

For more, please see: MEDIA STATEMENT: Understanding Claims Closed Without Payment: Context Behind the Numbers - Triple I

May 6, 2026

State Farm General Rejects Broad Allegations of Wildfire Mishandling

At Issue: The California Department of Insurance is using a limited review of selected claim files to create a political, headline-driven narrative that goes beyond what the report actually shows about State Farm General’s wildfire claims handling.

Why It Matters: Families are still rebuilding and deserve clear, accurate information. The Department’s public statements distort what this examination actually shows. The report was based on a limited review and largely cites administrative and process issues - not a broad failure to pay covered claims.

For The Record: State Farm General strongly disagrees with any effort to portray this examination as proof of broad mishandling or intentional underpayment of wildfire claims.

The examination reviewed 220 State Farm General wildfire claim files related to the Palisades and Eaton Fires. It was not a review of all wildfire claims. The report itself says it is written in a “report by exception” format and is not a comprehensive overview of the company’s practices. It also states that the alleged violations and criticisms have not undergone a formal administrative or judicial process.

That context matters.

Most of the issues cited involve letters, notices, documentation, timing, or payee information. We take those issues seriously, and they have been addressed or are being addressed through claim reviews, supplemental payments where appropriate, updated forms and letters, added training, and stronger oversight. But those issues are not the same as proof that State Farm General broadly failed to pay covered claims.

Where the examination identified payment adjustments, the total amount was only $41,900 across the reviewed files — a very small amount compared with the more than $5.7 billion State Farm General has paid to help customers recover. State Farm General has handled more than 13,700 auto and homeowners claims related to these fires, and that work continues as families rebuild.

Any move to suspend State Farm General would make a difficult California insurance market even harder for homeowners. With fewer major insurers writing new business, taking one of the state’s largest home insurers out of the market would mean fewer choices for customers, more people pushed into the FAIR Plan, and more uncertainty for families trying to rebuild or protect their homes.

We respect regulatory oversight. We also believe the public deserves a fair and accurate understanding of what this report does - and does not - show. State Farm General does not agree with any suggestion that it engaged in a general practice of mishandling or intentionally underpaying wildfire claims. Our focus remains on helping customers recover, paying what we owe under the policy, and improving the experience for people still rebuilding.

For more information on this issue: State Farm is There for Customers, Rejects CDI's Allegations

April 17, 2026

State Farm is There for our Missouri Customers

At Issue: We recently received a letter from U.S. Senator Josh Hawley of Missouri. We are reviewing the inquiry as we share the same goal, helping the people of Missouri recover from the unexpected. That’s what we have been doing in the state since 1925.

Why it Matters: We are proud to serve over 2 million customers in Missouri who know that they can count on us when they need us most. Over the last five years, Missouri ranks in the top three states for catastrophe events. Approximately 3,500 local agents, agent team members and employees are proud to live and work in the state. Supported by the State Farm Catastrophe Response Team® — the largest catastrophe response team and fleet in the insurance industry, we are here to help our Missouri customers recover as quickly as possible after severe weather strikes.

For The Record: Across the country, in 2025 State Farm paid nearly $15 billion to customers for catastrophe claims. After damaging winds, hail, and tornadoes hit the St. Louis metro area in May 2025, State Farm® claims professionals mobilized to help customers recover. From that event we have handled approximately 20,400 claims and paid out more than $360 million in Missouri. We continue to be there today, helping and serving our customers. More than 485 agents live in and own small businesses in Missouri, making it easier for customers to get their questions answered. Over the last five years, Missouri has ranked #3 in states for catastrophe events. Today, we have dedicated Missouri catastrophe teams that allow our claim handlers and customers to start the process of recovery as quickly as possible.

Filing Claims:

State Farm policyholders who have damage can submit and manage their claim through various channels. This includes calling or emailing their State Farm agent, calling 1-800-SFCLAIM, submitting a claim through our mobile app or through our website at statefarm.com/claims. Customers may also text the word “CLAIM” to 62789 to receive a link to file a claim.
For significant events like last year’s storms, on-site locations may be announced to offer face-to-face, personal assistance to customers.
Customers are always welcome reach out with any questions or concerns. We are here to help.

Resources:

March 12, 2026

State Farm Response to NBC Nightly News Story in Oklahoma

State Farm has paid over $1 billion in claims to Oklahoma customers over the past two years for wind and hail damages. We fairly and diligently evaluate each claim to pay what we owe. We work hard to protect our customers in Oklahoma from contractors who may take advantage of people after a loss.

This case arises from the Hurshes filing of two insurance claims for approximately $22,000.00 from weather events that occurred on October 4, 2023 and May 21, 2024. State Farm promptly and properly investigated each claim, denying one claim as uncovered damage, and in the second, the covered damages were below the deductible.

The NBC narrative is inaccurate and misleading. A single homeowner dispute—or even multiple lawsuits—does not prove a “scheme.” Allegations in litigation are just that: allegations, driven by billboard attorneys. We strongly reject any implication that State Farm engages in illicit or unlawful conduct. The prevailing narrative that was portrayed in the NBC story is unfortunately indicative of the political environment and is a distraction from the real solutions that are needed in the state.
We pay what we owe under the policy, based on the facts. Insurance is not intended to pay every time something unfortunate happens to your property. Paying for uncovered losses passes costs on to other families. When damage is covered, we pay. When coverage doesn’t apply, we explain why and remain willing to consider any additional input from the insured.
The facts show we are paying customers after storms. Over the past two years, State Farm has paid more than $1 billion to Oklahoma customers for wind and hail damage to their homes and property.
We’re built to serve customers, not chase short-term gains. State Farm follows each state’s laws and sets premiums with one goal in mind: to collect enough to pay covered claims and costs, so customers have reliable protection when a loss happens.
We’re local in the moments that matter. With more than 300 local State Farm agents and hundreds of their team members serving Oklahoma, we help customers prepare for storms, navigate claims, and recover afterward—one household at a time.

Click here to learn more about our presence and impact in Oklahoma.

March 5, 2026

New Yorkers Deserve a Path to Lower Auto Insurance Premiums

At Issue: In her 2026 State of the State address, New York Governor Kathy Hochul pointed to auto insurance premiums averaging about $4,000 a year, roughly $1,500 more than the national average, and called out staged accidents and fraud as major drivers. She is right. In 2025 alone, New York insurers reported nearly 44,000 incidents of suspected motor vehicle fraud to state regulators, an 80% increase since 2020.

Why it Matters: Whether NY auto insurance gets more, or less, affordable in the years ahead is impacted by whether the underlying costs of claims go up or down. Cost pressures on claims include vehicle repairs, litigation, inflation, fraud and abuse. State Farm Mutual (and all insurers) must remain financially strong to keep our promise to our customers, even in years when losses are high. This is what customers deserve and expect, and it is what regulators appropriately demand.

For The Record: State Farm is firmly committed to our New York customers and has long worked for improved market conditions. Rates in New York are set based on expenses from New York and are not impacted by losses in other states, and every New York driver is paying a premium inflated by someone else’s fraud. That is why we appreciate key parts of the Governor’s package:

Cracking down on staged accidents and organized fraud, including stronger tools for prosecutors to pursue the people who organize these schemes.
Giving insurers more time to investigate suspected fraud, legitimate claims can be paid faster while suspicious claims get the careful review they deserve.
Strengthening the state’s focus on fraud enforcement, including added resources and coordination with law enforcement and district attorneys across the state.
Reforming the serious injury threshold under New York’s no-fault system with objective medical standards.

December 19, 2025

Oklahoma Homeowners Insurance

At Issue: State Farm is in the business of helping people. We are disappointed in the mischaracterization of our business practices and why homeowners insurance costs are rising for Oklahomans.

Why it Matters: As a mutual company, State Farm exists to serve customers. Our Homeowner’s Policy is designed to provide some of the broadest coverage available today. When a customer has a claim, we provide all coverage within the policy available to our customer for their claim.

For the Record: Over the past two years, State Farm has paid more than $1 billion to Oklahoma customers for wind and hail damage to their property. Oklahoma has some of the highest wind and hail damage losses in the country.

As a mutual company, our focus is customers, not profits. Our aim is to collect enough premium to pay claims when customers have a loss.

Oklahoma officials should focus on tackling the root of the problem – inflation and more weather-related losses that require increased home and community resilience measures.

More than 300 local State Farm Agents, hundreds more of their team members, and State Farm employees across the country proudly serve millions of customers in Oklahoma.

State Farm is committed to working with the Oklahoma Department of Insurance to benefit Oklahoma customers.

November 13, 2025

State Farm Responds to LA County Investigation

At Issue: Despite the fact that State Farm is on track to pay more than $6 billion in claims, Los Angeles County announced on November 13th that County Counsel has launched an investigation into State Farm’s handling of insurance claims filed by policyholders affected by the January 2025 Eaton and Palisades Fires.

Why it Matters: The goals of this investigation by LA County are unclear but what is clear is that it will be another distraction from our ongoing work in California to help our customers recover from this tragedy. State Farm has been protecting customers in California for nearly 100 years, and that work is ongoing and active today.

For the Record:

As of November 12, State Farm has paid over $5B on 13,500 Auto and Fire claims resulting from the January fires.
In the last 30 days, State Farm has paid out more than $208M to customers, an average of $6.9 million every day.
More than $2.2B has been paid out in advance payments and for additional living expenses for customers displaced by the fires.
We anticipate ultimately State Farm General will pay between $6-7B in losses from these fires.
There are still nearly 200 claims associates on the ground in California helping customers. Earlier this year, there were about 1,000 claims associates in California. These employees have chosen to make their career about helping people who have been devastated by catastrophes. This on the ground help has been amplified by thousands of State Farm employees who have helped from across the country.
In California, there are just under 2,000 State Farm agents – more than 500 are based in LA County. They and their teams continue to work tirelessly to help people.

Customers should continue to directly reach out to us with claim questions or concerns. We actively work with each of our customers to understand the facts of their loss, identify the damages and applicable coverage, and ultimately resolve their claim. We also remain committed to helping build an affordable, available, and sustainable insurance market for all Californians.

November 6, 2025

California Groups & Media Choose Criticism over Constructive Solutions

At Issue: Organizations at a recent press conference outlined a variety of complaints against Commissioner Lara and called for his resignation. Additionally, despite continuing to operate in an extremely challenging environment, State Farm (along with the broader industry) was specifically criticized with complaints about underwriting, rates, and claim handling decisions.

Why it Matters: For many California residents, finding insurance coverage has become increasingly challenging. State Farm has been public and transparent about our business decisions in California and the wildfire response. Introduced by Insurance Commissioner Ricardo Lara, California’s Sustainable Insurance Strategy has the potential to be the most significant insurance reform since Proposition 103 was passed in 1988. Each element of this strategy has the potential, over time, to play a vital role in reviving the insurance marketplace.

For the Record: State Farm is committed to paying customers what they’re owed. We're handling over 13,500 claims and have paid almost $5 billion to California customers affected by the January wildfires. Nearly 200 Claims professionals are still on the ground, supported by teams nationwide, helping customers recover. We’re here every step of the way and working with elected officials to build a more sustainable insurance market in California. State Farm will continue to assist our California customers. We will also work constructively with the CDI, the Governor's Office and policymakers to see long-term solutions to the challenges facing the state.

November 4, 2025

Correcting the Record - Florida Claims

At Issue: National news outlets continue to publish misleading stories based on an inaccurate representation of Florida claims “closed without payment.” The information is cherry-picked and framed to generate headlines while misleading consumers.

Why it Matters: The outlets mischaracterize the data as claims that were denied by State Farm. Additionally, the outlet’s previous coverage was presented in a way that could have created fear for customers in the middle of the recovery process from a severe weather event. This was a disservice to our customers and all insurance consumers.

For The Record: The cited data on paid claims is inaccurate, incomplete, and presented in a way that artificially underrepresented payments to our customers. The information is cherry-picked to drive an inaccurate narrative. The most egregious misinformation is the representation of all claims closed without payment as “denied” claims. For example, many claims that are closed without payment involve smaller amounts of loss that fall below the customer’s policy deductible(s). Moreover, for many of the claims that could be classified as “denials,” the excluded cause of loss is flood damage, which is covered by FEMA through the NFIP, not private homeowners insurance policies. In some instances, if an individual does not have a flood policy to cover their damage, they may file a claim with their insurance company to obtain the necessary paperwork to pursue disaster assistance from the federal government.

The Florida Office of Insurance Regulation (OIR), who regulates the Florida insurance market stated to the Tampa Bay Times in June of 2024 - “We caution against using the data to draw conclusions or make analyses regarding Florida’s insurance market.” We agree with the state insurance regulator’s assessment.

November 1, 2025

Failed Rate Regulation Bill Would Harm Illinois Insurance Customers

At Issue: Recently, the Illinois House rejected harmful legislation that would have changed how homeowners insurance is regulated in the state. HB3799 would have granted the Illinois Department of Insurance the authority to retroactively determine an insurance rate was excessive and demand refunds be paid to customers. This would have reduced the ability of carriers to effectively match price to risk AFTER the rate was already in use. If the bill had passed, it would've been harmful to Illinois insurance customers and reduced future availability of coverage.

Why it Matters: Illinois Governor JB Pritzker called for the legislation in July after State Farm announced a significant rate increase for homeowners insurance in the state. While the legislation was characterized as a consumer protection, the inability for insurers to appropriately match price to risk was cause for great concern among the industry. On the final day of the fall veto session, the Illinois legislature debated the bill, but late session maneuvering by some lawmakers and the state's director of insurance led to unfavorable amendments to the legislation. Ultimately the bill failed to pass.

For The Record: State Farm remains committed to working with state officials to find solutions to protect both consumers and market stability. Legislation introduced in the veto session would have hurt, not helped, Illinois consumers. We support solutions like strengthening homes and properties against extreme weather, promoting accurate pricing, and reining in lawsuit abuse.

State Farm is pleased to see this legislation stopped as it would have adversely affected Illinois customers and the insurance market in the state.

October 31, 2025

Florida Efforts to Combat Legal System Abuse Lowering Costs for Customers

At Issue: Recognizing that lawsuit abuse was driving up auto insurance costs, Florida legislators and regulators collaborated with the insurance industry to tackle the problem. In 2023, the Legislature passed HB 837, a monumental litigation reform package addressing lawsuit abuse. Rather than accept the status quo of ever-increasing litigation, lawmakers enacted reforms that changed the litigation landscape, reducing litigation and lowering litigation costs which in turn lowered the cost of auto insurance for many Florida families.

Why it Matters: Floridians were facing rising auto insurance costs due to over-litigation. Thanks to the legislative reforms, State Farm rolled out lower auto rates in Florida, reducing rates more than 20% on average since Oct. 2024. This is welcome news for our customers as we return value with significant savings. The latest rate cut filed in October 2025 means customers will see their premiums drop an average of 10 percent. Our overall reductions since Oct. 2024 amount to more than $1 billion in lower annual premiums for private passenger cars averaging more than $400 in savings per vehicle.

For The Record: State Farm is solidly committed to our Florida customers and has long worked for improved market conditions. We agree with recent comments by the Florida Governor and the Office of Insurance Regulation that the insurance market is stabilizing because of this work, and that reduced litigation has contributed to our repeated opportunity to offer lower rates. State Farm hopes to build on this momentum and will continue to work towards further improvements in the marketplace on behalf of all our Florida customers.

October 14, 2025

Illinois Attorney General Lawsuit v. State Farm

At Issue: The Illinois AG initiated a lawsuit against State Farm requesting access to proprietary customer data in what can only be described as regulatory overreach. This development follows a similar 2024 demand from the Illinois Department of Insurance (DOI) for the same data, and a 2022 request by the Federal Insurance Office to evaluate the effects of climate change on homeowners insurance.

Why it Matters: State Farm maintains that the Illinois DOI’s demand exceeds its legal authority. Consequently, the company has declined to provide the requested data and has instead proposed that the matter be resolved through an independent third party or judicial review. This request was submitted to the Illinois DOI nearly a year ago. Providing nationwide data to our state regulator would have set a dangerous precedent in regards to who can have access to our proprietary data.

For The Record: State Farm complies with all applicable laws and remains committed to working with Illinois regulators. This Illinois taxpayer funded lawsuit is without merit and unrelated to State Farm’s Illinois rates or our Illinois customers. State Farm has provided the Illinois Department of Insurance all data necessary to support its Illinois insurance rates. For the record, State Farm will continue to proudly serve millions of people in Illinois and work with the Illinois Department of Insurance to benefit Illinois customers on behalf of the more than 21,000 agents, agent team members, and State Farm employees who call Illinois home.

February 28, 2025

State Farm Announces 2024 Financial Results

At Issue: In 2024, State Farm continued to fulfill its mission of helping people manage the risks of everyday life, recover from the unexpected and realize their dreams. We maintained our commitment to helping more customers and, in turn, saw an increase of more than one million policies and accounts. While auto and fire insurance companies within the State Farm group of companies reported underwriting losses, results improved over prior year. The State Farm life insurance companies reported $817 million in dividends to policyholders and issued a record $122 billion in new policy volume bringing the year-end 2024 individual life insurance in force to $1.2 trillion.

Why it Matters: The financial strength of State Farm Mutual Automobile Insurance Company and each of its affiliates is key to fulfilling our promises to customers in the future and expanding and enhancing the way we serve customers. We are committed to investing in our business, expanding our digital capabilities to enhance our customers' experience, and providing an offering that makes us the first and best choice in the market. We remain focused on growing our customer base, which supports our ability to invest in our products and services to enhance the overall customer experience through better customer service, more innovative insurance products and better technology solutions (such as user-friendly apps and online tools).

For The Record: “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. As of February 26, we’ve received more than 11,750 total fire and auto claims related to the fires and have paid nearly $2.2 billion to our customers,” said Senior Vice President, Treasurer and Chief Financial Officer Mark Schwamberger.

“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.”

February 15, 2025

Wall Street Journal Mischaracterizes California Operations

At Issue: In early February 2025, the Wall Street Journal published a story mischaracterizing State Farm General’s business decision in the years prior to the Los Angeles wildfires. The article inaccurately claims that State Farm General our homeowner’s insurance customer base in Los Angeles to increase agent commissions despite increasing fire risks, and then cut thousands of policies last year. The story unfairly implied these actions contributed to the state’s home-insurance challenges, decreasing competition and forcing consumers on to the state’s insurer of last resort, the California FAIR plan.

Why it Matters: California’s insurance market is facing serious challenges. Rising costs, more frequent natural disasters like wildfires, and outdated regulations have made it harder for many Californians to find affordable and reliable home and business insurance. For nearly a decade, State Farm General has worked to keep up with these risks by carefully managing growth and seeking fair rate increases that reflect the true cost of coverage. However, strict rules and delays in approving these rate changes have made it difficult to keep enough financial resources to cover the risks we insure. As a result, we’ve had to make tough decisions, such as limiting coverage in the highest-risk areas while still trying to serve customers in safer regions. Unlike some companies that have left the state, State Farm remains committed to California.

For The Record: State Farm wants to set the record straight about our role in California’s insurance market. We are the largest insurer in the state, protecting more Californians than any other company. State Farm General Insurance Company is the biggest provider of fire insurance in California, with more than 2.8 million policies, including over 1 million homeowners policies. Insurance works by matching price to risk—those facing higher risks pay more to help cover potential losses. Unfortunately, over the past nine years, premiums have not kept pace with the real costs. For every dollar collected in premiums, State Farm General paid $1.26 in claims and expenses, leading to over $5 billion in losses. Our efforts to raise rates and limit growth have been limited by regulatory challenges and delays, including opposition from intervenors who have slowed down the rate review process.