FAQs
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.
Why is State Farm losing so much money? ›
State Farm posted a net loss of $6.3 billion in 2023, driven largely by a "significant increase" in catastrophe claims by homeowner policyholders, the Bloomington-based company reported Thursday. That $6.3 billion net loss is actually an improvement from 2022, when it lost $6.7 billion.
Why is State Farm dropping customers? ›
In a statement, the big insurance carrier says: "The decision was not made lightly and only after careful analysis of State Farm General's financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs and the limitations of working within decades-old-insurance regulations."
Did State Farm lose their AM best rating? ›
Rating agency A.M. Best Co. said Thursday it has downgraded the financial strength rating of State Farm General Insurance Co., the homeowners unit of State Farm Group, to B (Fair) from A (Excellent).
How much money did Allstate lose in 2023? ›
Allstate's Property-Liability recorded fourth quarter underwriting income of $1.3 billion versus a loss of about $1 billion a year ago. An underwriting loss of about $2.2 billion was recorded for full year 2023 versus a loss of $2.9 billion for all of 2022.
How much does the CEO of State Farm Insurance make? ›
Who is State Farm's biggest competitor? ›
Top 10 Largest Auto Insurance Companies
- State Farm. 18.31% 9.4.
- Progressive. 15.24% 9.4.
- Geico. 12.31% 9.3.
- Allstate. 10.37% 9.1.
- USAA** 6.27% 9.3.
- Liberty Mutual. 4.20% 9.1.
- Farmers Insurance. 4.18% 8.5.
- American Family Insurance. 2.14% 9.0.
Why is State Farm getting out of the banking business? ›
As to why: "State Farm is focused on serving more customers in more ways and sometimes that means doing things differently than we have in the past. State Farm has made the decision to offer customers banking products and services through alliances rather than State Farm Bank," said Roszell Gadson.
Why is State Farm canceling policies? ›
State Farm said it is working with the California regulators “to establish an environment in which insurance rates are better aligned with risk.” Last year, the company said it would not issue any new policies in California, citing construction costs that were outpacing inflation and “rapidly growing catastrophe ...
How financially stable is State Farm insurance? ›
Documents from AM Best, a company that rates insurance companies' financial solvency, show a troubled situation for State Farm. Its financial strength was downgraded this spring, and its long-term outlook is considered negative. “Financially speaking, State Farm is very, very much apparently in trouble.
State Farm General's downgrade was related to a specific set of conditions in California that are making it difficult for homeowner's insurers to operate profitably in the state, such as the increased incidence of wildfires.
What is the downgraded financial rating for State Farm? ›
Share This. The financial strength rating of State Farm General Insurance Company was recently downgraded from stable to negative, moving from A (excellent) to B (fair), while the insurer's long-term issuer credit rating (ICR) fell from “a” (excellent) to “bb+” and now also carries a negative outlook.
Why did State Farm losses $13 billion dollars? ›
“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,” the company said in a media statement.
What is State Farm's net worth in 2023? ›
(WMBD) — State Farm property and casualty insurance companies reported a $3.5 billion increase in its net worth, ending 2023 at $134.8 billion. The year saw a growth in policies. The nation's largest auto and homeowners insurer noted, however, that catastrophic claims were significant.
Have insurance companies been losing money? ›
In 2023, insurers lost money on homeowners coverage in 18 states, more than a third of the country, according to a New York Times analysis of newly available financial data. That's up from 12 states five years ago, and eight states in 2013.
How much is Jake from State Farm worth? ›
How much does Jake from State Farm make? The original Jake, the real-life State Farm agent named Jake Stone, made around $10,000 for his role as himself in the commercial. Kevin Miles, the new Jake, earns around $10,000 to $15,000 for his ads. He's also a social media influencer with a net worth of $2 million.