State Farm® Announces 2023 Financial Results

State Farm® Announces 2023 Financial Results
State Farm® Announces 2023 Financial Results

Bloomington, IL, February 29, 2024 – In 2023, State Farm property and casualty insurance companies experienced growth in policies as well as reporting underwriting losses due to continued high claim severity and significant catastrophe activity for both auto and homeowners insurance companies. While State Farm experienced adverse operating results in 2023, State Farm Mutual Automobile Insurance Company reported a $3.5 billion increase in net worth and is financially strong. State Farm life insurance companies reported more than $725 million in dividends to policyholders and issued a record $118 billion in new policy volume that brought year-end 2023 individual life insurance to $1.1 trillion. As America’s number one auto and homeowners insurer and a leader in personal 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 our expectations and we are taking a state-specific approach to operations,» said Mark Schwumberger, senior vice president, treasurer and chief financial officer. «The disaster losses in 2023 were widespread, and our claims and operations team members, State Farm independent contractor agents, responded throughout the year to help customers. State Farm Mutual Automobile Insurance Company remains financially strong, and that is the strength that allows us to handle the uncertainty.» And allows us to serve more customers in the long run.»

State Farm Mutual Automobile Insurance Company’s net worth rose to $134.8 billion at the end of the year, compared to $131.2 billion at the end of 2022. The change in 2023 includes an increase in the value of the unconsolidated stock portfolio of PC companies, due to an increase in the US equity market, partially offset by pre-tax operating losses by the PC group of companies. The State Farm PC group of companies reported earned premiums of $87.6 billion and a combined underwriting loss of $14.1 billion. This result compares to an underwriting loss of $13.2 billion on earned premiums of $74.3 billion in 2022. The change in 2022 reflects an improvement in auto line underwriting results that was offset by a significant increase in catastrophic claims made by homeowners. The 2023 underwriting loss, combined with investment and other income of $5.6 billion, resulted in a PC pre-tax operating loss of $8.5 billion, which compares with the $8.3 billion loss reported in 2022. Total revenue, which includes premium revenue, is earned investment income. And capital gains (losses) were $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.

State Farm Insurance operations consist of fourteen PC companies and two life companies, each of which is managed at the individual affiliate level. PC companies are primarily engaged in automobile, health, homeowners, commercial multiple peril (CMP) and business reinsurance lines. Life companies are mainly engaged in personal life insurance and annuity business. State Farm offers insurance and financial services products to more than 94 million policies and accounts. In addition, State Farm Group provides third party products to meet customer needs, including, but not limited to, annuities, banking, health, mutual funds and pet medicine.

Auto – State Farm’s auto insurance business represents 64 percent of PC companies’ combined net written premiums. Earned premiums were $56.1 billion. Expensed claims and loss adjustment expenses were $53.4 billion and all other underwriting expenses totaled $12.4 billion. Underwriting losses were $9.7 billion.

The comparable figures for 2022 were: earned premiums, $45.7 billion; claims and loss adjustment expenses, $48.4 billion; all other underwriting expenses, $10.8 billion; Underwriting losses, $13.4 billion.

Landlord, CMP, Others – Net written premiums for the rest of the State Farm PC business represent 35 percent of the combined net written premiums of the PC companies. Earned premiums were $30.5 billion. Expensed claims and loss adjustment expenses were $28.0 billion and all other underwriting expenses were $7.1 billion. Underwriting losses were $4.7 billion.

The comparable 2022 figures were: earned premiums, $27.6 billion; claims and loss adjustment expenses, $20.0 billion; all other underwriting expenses, $6.7 billion; Underwriting profit, $849 million.

Health – Individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $106 million, excluding changes in premium deficiency reserves. Net written premiums were $729 million.

Comparable figures for 2022 were: underwriting losses, $81 million; Net written premiums, $723 million.

the life – In 2023, State Farm Life Insurance Company and State Farm Life & Casualty Insurance Company reported $6.5 billion in premium income and $725 million in dividends to policyholders. Net income for 2023 was $1.2 billion. At the end of 2023 there was $1.15 trillion in personal life insurance.

The 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 investment planning service operations at the end of 2023 were $13.8 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $41 million in 2023.

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


Although financial information is presented on a group/line of business basis, State Farm Mutual Automobile Insurance Company and each of its affiliates must meet solvency and regulatory requirements on an individual-by-unit basis, regardless of the solvency or financial condition of any individual. Other related bodies.

Securities distributed by State Farm VP Management Corporation.

State Farm VP Management Corporation is a separate entity from State Farm entities offering banking and insurance products. Neither State Farm nor its agents provide investment, tax, or legal advice.

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