By Greg Halbleib

BLOOMINGTON – State Farm has reported a pre-tax operating loss of $1.2 billion in 2016, although the insurance giant’s combined net worth has grown by nearly $5 billion during the year.

State Farm spokesman Dave Phillips says all of the divisions reported gains except the largest one.

“The fire company, our life company, State Farm Bank and our mutual funds each had an operating profit and the combined net worth of State Farm did grow,” Phillips said. “That said, the operating loss that we reported was actually within our auto company where we were below expectations.”

The auto insurance division recorded a loss of $7 billion in 2016 on claims of on claims of $35.8 billion.

“The claims volume increased as well as cost per claim,” Phillips said. “So the cost for body damage and the cost for injuries that occurred from accidents helped influence, unfortunately, the loss that State Farm had on the auto side.”

The company today reported an underwriting loss of $5.5 billion, offset partially by investment and other income of $4.4 billion. State Farm’s combined net worth grew to $87.6 billion, due in part to a $4.2 billion increase in the company’s stock portfolio.

Phillips said the salary of CEO Michael Tipsord was $8.16 million in 2016, which is based partly on company performance.

Greg Halbleib can be reached at [email protected].