US insurance giant sees net income fall from $8.8bn to $5.6bn

Written by Adam Cadle

10/03/2020

US insurance giant, State Farm, has recorded a 2019 net income of $5.6bn, down from $8.8bn of net income in 2018 as a result of higher losses and lower premiums from its P&C business.

The State Farm P&C group of companies reported a combined underwriting gain of $777m in 2019 on earned premium of $64.8bn, compared to an underwriting gain of $1.7bn on earned premium of $65.2bn in 2018.

The State Farm life insurance companies paid out nearly $600m in dividends to policyholders and ended with $959bn in total life insurance in force. In 2018, total life insurance in force was $927bn and dividends to policy holders was $577m.

Total assets under management for the investment planning services operation at the end of 2019 were $12.7bn. Comparable figures for 2018 were net income, $35m; total assets, $16.9bn.

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.

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