Good Neighbor Stories

State Farm® Reports 2025 Financial Results

Thu, 26 Feb 2026 10:00:00 -0600

State Farm today released financial results for 2025, including strong underwriting results and growth in the value of its investments leading to an expanded net worth, which enhances the ability to meet the needs of customers.

Positive performance in the auto business led State Farm Mutual Automobile Insurance Company (State Farm Mutual) to declare a one-time $5 billion cash back dividend for qualifying auto customers. This dividend will be paid in 2026 and is on top of the savings from recent auto rate reductions by State Farm Mutual in 40 states amounting to about $4.6 billion annually in lower total annual premiums for our customers. In addition to the $5 billion in payments to auto customers, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported nearly $1 billion in total dividends to qualified life policyholders – the highest in those companies’ history.

Staying true to its mission of helping people recover, State Farm Mutual and its property and casualty affiliates reported incurred claims of $78 billion, including payments of nearly $15 billion in 2025 to customers experiencing catastrophe claims in addition to our community-level philanthropic contributions. More than 1,000 State Farm employees, agents and agent team members deployed to California to help more than 13,500 customers with claims following devastating wildfires in January 2025. To date, State Farm Mutual and State Farm General Insurance Company together have issued over $5 billion in payments to families whose cars, homes and property were damaged or destroyed by those fires. Because many claims, repairs and rebuilds are still underway, it is anticipated that total payments could reach $7 billion. Hundreds of State Farm team members remain on the ground in the Los Angeles area assisting customers.

A Look at 2025 Financial Results
The State Farm group of companies continues to grow, providing insurance and financial services products across nearly 97 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, variable annuities, banking, mutual funds and pet medical.

The financial strength of State Farm Mutual and each of its affiliates is key to fulfilling promises to customers in the future and expanding and enhancing service to customers.

In 2025, the State Farm group of companies reported an underwriting gain, representing an improvement over prior year and consistent with industry-wide trends. As a mutual company without shareholders, State Farm Mutual is uniquely positioned to provide value directly to customers such as policyholder dividends.

The State Farm property and casualty affiliates reported earned premium of $111.6 billion and a combined underwriting gain of $1.5 billion. This result compares to an underwriting loss of $6.1 billion on earned premium of $103.0 billion in 2024. The change over 2024 reflects an improvement in auto insurance underwriting results while the home insurance underwriting results were impacted by the January 2025 Los Angeles wildfires. The 2025 underwriting gain, combined with investment and other income of $7.0 billion, resulted in a property and casualty pre-tax operating profit of $8.5 billion, which compares to the $111 million loss reported in 2024.

The State Farm life insurance affiliates reported $924 million in dividends to policyholders and issued a record $130 billion in new policy volume bringing the year-end 2025 individual life insurance in force to $1.2 trillion.

Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was $132.3 billion for 2025 compared to $123.0 billion for 2024. State Farm reported a net income of $12.9 billion in 2025 compared to a net income of $5.3 billion in 2024. The reported net income for 2025 includes the impact of $2.0 billion of realized capital gains, net of tax.

The net worth for State Farm Mutual ended the year at $170.0 billion compared to $145.2 billion at year-end 2024. This increase was due to the property and casualty companies’ pre-tax operating profit and, in large part, an increase in the value of the property and casualty companies’ unaffiliated stock portfolios.

A Look at How Core Lines of Business Performed
The State Farm group’s insurance operations consist of 14 property and casualty companies and two life companies, each of which is managed on an individual affiliate level. The property and casualty companies are primarily engaged in automobile, health, homeowners, and commercial multiple peril (CMP) lines of business. The life companies are primarily engaged in individual life insurance and annuity business.

Auto
The State Farm auto insurance business represented 63 percent of the property and casualty companies’ combined net written premium. Earned premium was $71.3 billion. Incurred claims and loss adjustment expenses were $52.6 billion and all other underwriting expenses totaled $14.1 billion. The underwriting gain was $4.6 billion. Comparable 2024 figures were: earned premium, $67.5 billion; incurred claims and loss adjustment expenses, $56.2 billion; all other underwriting expenses, $14.0 billion; underwriting loss, $2.7 billion.

Homeowners, CMP, Other
The net written premium for the remainder of the State Farm property and casualty business represented 36 percent of the property and casualty companies’ combined net written premium. Earned premium was $39.2 billion. Incurred claims and loss adjustment expenses were $33.6 billion and all other underwriting expenses totaled $8.6 billion. The underwriting loss was $3.1 billion. Comparable 2024 figures were: earned premium, $34.5 billion; incurred claims and loss adjustment expenses, $30.1 billion; all other underwriting expenses, $7.9 billion; underwriting loss, $3.6 billion.

Life
In 2025, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $6.9 billion and $924 million in dividends to policyholders – the highest life insurance dividend in State Farm history. Net income for 2025 was $2.1 billion. There was $1.22 trillion in individual life insurance in force at the end of 2025. Comparable 2024 figures were: premium income, $6.7 billion; dividends to policyholders, $817 million; net income, $1.7 billion; individual life insurance in force, $1.18 trillion.

Health
The individual health insurance operations for State Farm Mutual reported an underwriting loss of $189 million, excluding the change in the premium deficiency reserve. Net written premium was $756 million. Comparable figures for 2024 were: underwriting loss, $130 million; net written premium, $731 million.

Investment Planning Services
Total assets under management for the Investment Planning Services operation at the end of 2025 were $17.5 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $39 million in 2025. Comparable figures for 2024 were: total assets under management, $15.2 billion; net loss, $33 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.

State Farm VP Management Corp. is a registered broker-dealer. State Farm VP Management Corp. is a separate entity from those affiliated and/or unaffiliated entities which provide advisory services, banking products and insurance products. Advisory Services provided by State Farm Investment Management Corp. (SFIMC), a registered investment adviser. Securities are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal. Neither State Farm nor its agents provide tax or legal advice. AP2026/02/0159

State Farm® Mutual Announces $5 Billion Cash Back to Auto Customers Through Largest Dividend in Company History

Thu, 26 Feb 2026 10:00:00 -0600

State Farm Mutual Automobile Insurance Company (State Farm Mutual) today announced it is paying $5 billion cash back to auto customers through a dividend, in addition to recent auto insurance rate reductions in many states already saving customers $4.6 billion annually.

This summer, State Farm Mutual will begin making a one-time distribution to qualifying customers across more than 49 million State Farm Mutual auto vehicles. This dividend is possible due to State Farm Mutual’s financial strength and a stronger than expected underwriting performance, which has been reported industry wide. As a mutual company, State Farm® is uniquely positioned to provide value directly to customers rather than shareholders. The payments average $100 per vehicle and will vary by state and premiums paid.

“As a mutual company with a customer-first focus, State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future. That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend.” – Jon Farney, State Farm Mutual President and CEO.

In addition to the dividend, downward trending auto repair costs and frequency of collisions in 2025 have allowed State Farm Mutual to lower auto rates in 40 states in recent months, by an average of 10 percent, with premium savings to consumers of $4.6 billion. We will continue to monitor these trends and continue to take appropriate action.

For over 100 years, the mission of State Farm has been to help people manage the risks of everyday life, including investments in research that turns knowledge into protection – making driving safer and smarter for everyone. To that end, State Farm launched a national distracted driving awareness program, grounded in the company’s consumer research, to help further reduce the number of accidents and make roads safer.

State Farm® Announces 2024 Financial Results

Fri, 28 Feb 2025 12:00:36 -0600

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.

“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.”

The net worth for State Farm Mutual Automobile Insurance Company ended the year at $145.2 billion compared to $134.8 billion at year-end 2023. The change during 2024 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 $103.0 billion and a combined underwriting loss of $6.1 billion. This result compared to an underwriting loss of $14.1 billion on earned premium of $87.6 billion in 2023. The change over 2023 reflects significant improvement in auto lines underwriting results which was partially offset by an increase in homeowners incurred catastrophe claims. The 2024 underwriting loss, combined with investment and other income of $6.0 billion, resulted in a P-C pre-tax operating loss of $111 million, which compares to the $8.5 billion loss reported in 2023. Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was $123.0 billion for 2024 compared to $104.2 billion for 2023. State Farm reported a net income of $5.3 billion in 2024 compared to a net loss of $6.3 billion in 2023. The reported net income for 2024 includes the impact of $3.0 billion of realized capital gains, net of tax.

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).

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. The State Farm group of companies provides insurance and financial services products across over 96 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 65 percent of the P-C companies’ combined net written premium. Earned premium was $67.5 billion. Incurred claims and loss adjustment expenses were $56.2 billion and all other underwriting expenses totaled $14.0 billion. The underwriting loss was $2.7 billion.

Comparable 2023 figures were: earned premium, $56.1 billion; incurred claims and loss adjustment expenses, $53.4 billion; all other underwriting expenses, $12.4 billion; underwriting loss, $9.7 billion.

Homeowners, CMP, Other – The net written premium for the remainder of the State Farm P-C business represented 34 percent of the P-C companies’ combined net written premium. Earned premium was $34.5 billion. Incurred claims and loss adjustment expenses were $30.1 billion and all other underwriting expenses totaled $7.9 billion. The underwriting loss was $3.6 billion.

Comparable 2023 figures were: earned premium, $30.5 billion; incurred claims and loss adjustment expenses, $28.0 billion; all other underwriting expenses, $7.1 billion; underwriting loss, $4.7 billion.

Life – In 2024, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $6.7 billion and $817 million in dividends to policyholders. Net income for 2024 was $1.7 billion. There was $1.18 trillion in individual life insurance in force at the end of 2024.

Comparable 2023 figures were: premium income, $6.5 billion; dividends to policyholders, $725 million; net income, $1.2 billion; individual life insurance in force, $1.15 trillion.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $130 million, excluding the change in the premium deficiency reserve. Net written premium was $731 million.

Comparable figures for 2023 were: underwriting loss, $106 million; net written premium, $729 million.

Investment Planning Services – Total assets under management for the Investment Planning Services operation at the end of 2024 were $15.2 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $33 million in 2024.

Comparable figures for 2023 were: total assets under management, $13.8 billion; net loss, $40 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.}

State Farm® Announces 2023 Financial Results

Thu, 29 Feb 2024 13:15:27 -0600

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.

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.

State Farm® Announces 2020 Financial Results

Fri, 26 Feb 2021 11:58:00 -0600

Bloomington, IL, February 26, 2021 – In 2020 and for the second straight year, State Farm property and casualty insurance companies experienced growth in auto policies while also reporting lower auto lines earned premium. The decrease in auto earned premium reflects a focus on returning value to customers in the form of overall lower premiums. During 2020, in response to customers driving less and claims experience reflecting that change in behavior, State Farm rolled out the Good Neighbor Relief Program. As part of that program, State Farm paid approximately $2 billion in policyholder dividends to State Farm Mutual auto customers and provided premium relief for other auto customers. State Farm Mutual and the auto insurance affiliates also lowered premiums by an average of 11% nationally, saving customers another $2.2 billion over a six-month policy period.

State Farm also experienced growth in other lines of business, and the State Farm life insurance companies paid out nearly $600 million in dividends to policyholders and ended 2020 with nearly a trillion dollars of individual life insurance in force. 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.

“We strive to help more people in more ways. In an unprecedented year like 2020, we focus on our core mission to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams,” said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney. “The Good Neighbor Relief Program is a testament of our commitment to our policyholders and communities. Whether premium relief, dividends to State Farm Mutual auto customers, payment flexibility or philanthropic efforts in the communities we live and work, we're focused on relief and recovery efforts.”

The State Farm P-C group of companies reported earned premium of $65.1 billion, a combined underwriting gain of $1.9 billion, and paid $1.9 billion in dividends to policyholders. This result compared to an underwriting gain of $777 million on earned premium of $64.8 billion in 2019. The 2020 underwriting results reflect lower auto lines incurred claims offset by returns of value to customers in the form of lower premiums, along with an increase in homeowners incurred claims. The increase in homeowners incurred claims during 2020 was due to significant catastrophe activity across the country. The 2020 underwriting gain, combined with dividends to policyholders, and investment and other income of $4.6 billion, resulted in a P-C pre-tax operating gain of $4.5 billion, which was $1.2 billion lower than 2019. Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was $78.9 billion for 2020 compared to $79.4 billion for 2019. State Farm reported net income of $3.7 billion in 2020 compared to $5.6 billion of net income in 2019. The net worth for the State Farm group ended the year at $126.1 billion compared with $116.2 billion at year-end 2019. The change includes a significant increase in the value of the P-C companies’ unaffiliated stock portfolio, driven by increases in the U.S. equities market.

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 makes third party mutual funds and third party banking products available through affiliated State Farm companies that act as intermediaries between the third parties and State Farm customers. State Farm provides insurance and financial services products across over 84 million policies and accounts.

Auto – The State Farm auto insurance business represented 62 percent of the P-C companies’ combined net written premium. Earned premium was $41.3 billion. Incurred claims and loss adjustment expenses were $27.6 billion and all other underwriting expenses totaled $10.1 billion. The underwriting gain was $3.5 billion and dividends to policyholders totaled $1.9 billion.

Comparable 2019 figures were: earned premium, $41.5 billion; incurred claims and loss adjustment expenses, $32.0 billion; all other underwriting expenses, $10.3 billion; underwriting loss, $764 million.

Homeowners, CMP, Other – The net written premium for the remainder of the State Farm P-C business represented 36 percent of the P-C companies’ combined net written premium. Earned premium was $22.9 billion. Incurred claims and loss adjustment expenses were $18.6 billion and all other underwriting expenses totaled $5.9 billion. The underwriting loss was $1.6 billion.

Comparable 2019 figures were: earned premium, $22.4 billion; incurred claims and loss adjustment expenses, $14.8 billion; all other underwriting expenses, $5.6 billion; underwriting gain, $2.0 billion.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $24 million, excluding the change in the premium deficiency reserve. Net written premium was $710 million.

Comparable figures for 2019 were: underwriting loss, $66 million; net written premium, $707 million.

Life – In 2020, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.5 billion and $584 million in dividends to policyholders. Net income for 2020 was $339 million. There was $994 billion in individual life insurance in force at the end of 2020.

Comparable 2019 figures were: premium income, $5.5 billion; dividends to policyholders, $578 million; net income, $673 million; individual life insurance in force, $945 billion.

Investment Planning Services – Total assets under management for the Investment Planning Services operation at the end of 2020 were $13.9 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $33 million in 2020.

Comparable figures for 2019 were: total assets under management, $12.7 billion; net loss, $22 million.

GAINSCO, Inc. – On Dec. 31, State Farm Mutual Automobile Insurance Company acquired GAINSCO, Inc. The insurance operations for GAINSCO, Inc. are excluded from the reported results for the State Farm P-C group of companies in this release. In 2020, total revenue was $335 million, net income was $5 million and total assets totaled $421 million.

Securities distributed by State Farm VP Management Corp.

Download the 2020 By the Numbers infographic.

State Farm® Announces 2019 Financial Results

Fri, 28 Feb 2020 13:05:13 -0600

In 2019, State Farm property and casualty insurance companies experienced growth in policies while reporting lower earned premium compared to 2018. The decrease in property-casualty (P-C) earned premium reflects a focus on returning value to customers in the form of lower premiums when appropriate. The State Farm life insurance companies paid out nearly $600 million in dividends to policyholders and ended 2019 with $959 billion in total life insurance in force. 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.

“Our focus of putting customers first for nearly 98 years continues to underscore our position as the national leader in protecting people. Each year we help millions of our customers recover from the unexpected and live life confidently with the protection we provide,” said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney. “Our financial strength, along with our local presence and broad product offerings have earned us the loyalty of our customers and are the reasons more customers are choosing State Farm. Our agents, their teams and our employees are committed to providing customers and communities with the products and service they expect from their Good Neighbor.”

The State Farm P-C group of companies reported a combined underwriting gain of $777 million in 2019 on earned premium of $64.8 billion, compared to an underwriting gain of $1.7 billion on earned premium of $65.2 billion in 2018. The 2019 underwriting gain, combined with investment and other income of $5.0 billion, resulted in a P-C pre-tax operating gain of $5.7 billion. The lower underwriting gain in 2019 was driven by higher losses and lower earned premium compared to 2018. Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was

$79.4 billion for 2019 compared to $81.7 billion for 2018. State Farm reported net income of $5.6 billion in 2019, compared to $8.8 billion of net income in 2018. The net worth for the State Farm group ended the year at $116.2 billion compared with $100.9 billion at year-end 2018. The change was primarily due to an increase in the value of the P-C companies’ unaffiliated stock portfolio, driven by increases in the U.S. equities market.

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 84 million policies and accounts.

Auto – The State Farm auto insurance business represented 64 percent of the P-C companies’ combined net written premium. Earned premium was $41.5 billion. Incurred claims and loss adjustment expenses were $32.0 billion and all other underwriting expenses totaled $10.3 billion. The underwriting loss was

$764 million.

Comparable 2018 figures were: earned premium, $42.7 billion; incurred claims and loss adjustment expenses, $31.2 billion; all other underwriting expenses, $10.4 billion; underwriting gain, $1.1 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 $22.4 billion. Incurred claims and loss adjustment expenses were $14.8 billion and all other underwriting expenses totaled $5.6 billion. The underwriting gain was $2.0 billion.

Comparable 2018 figures were: earned premium, $21.6 billion; incurred claims and loss adjustment expenses, $15.0 billion; all other underwriting expenses, $5.7 billion; underwriting gain, $928 million.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $66 million, excluding the change in the premium deficiency reserve. Net written premium was $707 million.

Comparable figures for 2018 were: underwriting loss, $91 million; net written premium, $703 million.

Life – In 2019, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.5 billion and $578 million in dividends to policyholders. Net income for 2019 was $673 million. There was $959 billion in total life insurance in force at the end of 2019.

Comparable 2018 figures were: premium income, $5.4 billion; dividends to policyholders, $577 million; net income, $706 million; total life insurance in force, $927 billion.

State Farm Bank® – Net income in 2019 was $59 million and total assets for State Farm Bank, F.S.B. were $16.4 billion as of year-end 2019.

Comparable figures for 2018 were: net income, $35 million; total assets, $16.9 billion.

Investment Planning Services – Total assets under management for the Investment Planning Services operation at the end of 2019 were $12.7 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $22 million in 2019.

Comparable figures for 2018 were: total assets under management, $11.2 billion; net income, $7 million.

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.

Download the 2019 By the Numbers infographic.

State Farm® Announces 2018 Financial Results

Fri, 01 Mar 2019 08:05:00 -0600

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.

Securities distributed by State Farm VP Management Corp.

State Farm® Announces 2017 Financial Results

Thu, 01 Mar 2018 08:09:00 -0600

The State Farm property-casualty (P-C) 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 P-C pre-tax operating loss of $1.7 billion. The underwriting loss in 2017 was driven by significant catastrophe losses. Even with these operating losses, each of the State Farm companies remains financially strong.

The net worth for the State Farm group ended the year at $97.0 billion compared with $87.6 billion at year-end 2016. The increase was primarily due to an increase in the value of the P-C companies’ unaffiliated stock portfolio. Valuation updates for deferred tax assets and liabilities determined using the corporate tax rate enacted as part of the U.S. Tax Cuts and Jobs Act also increased net worth for the group.

“In 2017, State Farm helped our customers recover from unexpected losses, including several catastrophic events. While we had operating losses for the year, we are built to handle these events and we continue to be ‘good neighbors’ and have the financial resources to be there in our customers’ time of need,“ said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney. “Our employees, agents and agent team members are making significant changes and process improvements across our company to better serve our customers. We will continue becoming a leaner and stronger company in our pursuit of helping customers recover from the unexpected and being there to help life go right.”

Total revenue, which includes premium revenue, earned investment income, and realized capital gains (losses) was $78.3 billion for 2017 compared to $76.1 billion for 2016. State Farm reported net income of $2.2 billion in 2017, compared to $0.4 billion of net income in 2016. 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 mutual funds through affiliated companies. State Farm provides insurance and financial services products across more than 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 $41.6 billion. Incurred claims and loss adjustment expenses were $34.2 billion and all other underwriting expenses totaled $10.2 billion. The underwriting loss was $2.8 billion.

Comparable 2016 figures were: earned premium, $38.8 billion; incurred claims and loss adjustment expenses, $35.8 billion; all other underwriting expenses, $10.0 billion; underwriting loss, $7.0 billion.

Homeowners, CMP, Other – The net written premium for State Farm’s remaining P-C business represented 33 percent of the P-C companies’ combined net written premium. Earned premium was $21.4 billion. Incurred claims and loss adjustment expenses were $18.6 billion and all other underwriting expenses totaled $5.6 billon. The underwriting loss was $2.8 billion.

Comparable 2016 figures were: earned premium, $22.1 billion; incurred claims and loss adjustment expenses, $14.4 billion; all other underwriting expenses, $5.7 billion; underwriting gain, $2.0 billion.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $71 million, excluding premium deficiency reserve. Net written premium was $691 million.

Comparable figures for 2016 were: underwriting loss, $84 million; net written premium, $668 million.

Life – In 2017, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.3 billion and $578 million in dividends to policyholders. Net income for 2017 was $492 million. There was $901.7 billion in total life insurance in force at the end of 2017.

Comparable 2016 figures were: premium income, $5.7 billion; dividends to policyholders, $584 million; net income, $562 million; total life insurance in force, $873.7 billion.

State Farm Bank^® – Net loss in 2017 was $1 million and total assets for State Farm Bank, F.S.B. were $16.7 billion as of year-end 2017.

Comparable figures for 2016 were: net income, $39 million; total assets, $18.3 billion.

Mutual Funds – Total assets under management for the retail Mutual Fund operations at the end of 2017 were $13.0 billion, compared with $12.2 billion at the end of 2016. State Farm VP Management Corp. and State Farm Investment Management Corp. reported combined net income of $6 million in 2017, following net income of $4 million in 2016.

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^{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 issued by State Farm VP Management Corp. For more information, call 800-447-4930.}

^{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.}

State Farm™ Announces 2016 Financial Results

Tue, 28 Feb 2017 10:00:00 -0600

The State Farm property-casualty (P-C) companies reported an underwriting loss of $5.5 billion in 2016 on earned premium of $61.7 billion, compared to an underwriting loss of $2.1 billion on earned premium of $58.6 billion in 2015. The 2016 underwriting loss, combined with investment and other income of $4.4 billion (up $0.4 billion from 2015), resulted in a P-C pre-tax operating loss of $1.2 billion. The combined net worth for the State Farm group ended the year at $87.6 billion compared with $82.7 billion at year-end 2015. The increase includes a $4.2 billion increase related to the P-C companies’ unaffiliated stock portfolio, which is primarily invested in the U.S. equities market.

“Our focus of putting customers first for nearly 95 years continues to underscore our position as the leader in auto and home insurance and a leader in individual life insurance. Our financial strength, local presence and broad product offerings allow us to help customers recover from the unexpected and be there to help life go right,” said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney.

Total revenue, which includes premium revenue, earned investment income, and realized capital gains (losses) was $76.1 billion for 2016 compared with $75.7 billion for 2015. State Farm reported net income of $0.4 billion in 2016, compared with $6.2 billion of net income in 2015. Results in 2015 included $3.0 billion in realized capital gains due to two corporate mergers impacting stocks owned within the unaffiliated stock portfolio.

Financial results for the State Farm affiliated companies are incorporated in the State Farm group’s financial results. The State Farm insurance operations consist of ten P-C insurers and two life insurers, each of which is managed on an individual affiliate level. The P-C insurers are primarily engaged in automobile, health, homeowners, commercial multiple peril (CMP), and reinsurance lines of business. The life insurers are primarily engaged in individual life insurance and annuity business. The State Farm group also provides banking products and mutual funds through affiliated companies. State Farm provides insurance and financial services products across more than 84 million policies and accounts.

Auto – The State Farm auto insurance business represented 63 percent of the P-C companies’ combined net written premium. Earned premium was $38.8 billion, an increase of 6.9 percent from 2015. Incurred claims and loss adjustment expenses were $35.8 billion. The underwriting loss was $7.0 billion.

Comparable 2015 figures were: earned premium, $36.3 billion; incurred claims and loss adjustment expenses, $31.0 billion; underwriting loss, $4.4 billion.

Homeowners, CMP, Other – The net written premium for State Farm Fire and Casualty Company, State Farm Lloyds, State Farm General Insurance Company and State Farm Florida Insurance Company represented 33 percent of the P-C companies’ combined net written premium. Earned premium was $20.4 billion, an increase of 2.7 percent from 2015. Incurred claims and loss adjustment expenses were $13.3 billion. The underwriting gain was $1.6 billion.

Comparable 2015 figures were: earned premium, $19.9 billion; incurred claims and loss adjustment expenses, $12.2 billion; underwriting gain, $2.1 billion.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $84 million, excluding premium deficiency reserve. Net written premium was $668 million.

Comparable figures for 2015 were: underwriting loss, $98 million; net written premium, $667 million.

Life – In 2016, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.7 billion and $584 million in dividends to policyholders. Net income for 2016 was $562 million. There was $873.7 billion in total life insurance in force at the end of 2016.

Comparable 2015 figures were: premium income, $5.5 billion; dividends to policyholders, $582 million; net income, $667 million; total life insurance in force, $844.8 billion.

State Farm Bank^™ – Net income in 2016 was $39 million and total assets for State Farm Bank, F.S.B. were $18.3 billion as of year-end 2016. Comparable figures for 2015 were: net income, $45 million; total assets, $16.7 billion.

Mutual Funds – Total assets under management for the retail Mutual Fund operations at the end of 2016 were $12.2 billion, compared with $11.3 billion at the end of 2015. State Farm VP Management Corp. and State Farm Investment Management Corp. reported combined net income of $4 million in 2016, following net income of $12 million in 2015.