State Farm sees net worth increase, underwriting losses in 2017

Posted on March 1, 2018
State Farm
State Farm saw its net worth increase in 2017, despite experiencing a heavy underwriting loss. (WJBC file photo)

By Patrick Baron

BLOOMINGTON – Despite some unexpected costs, State Farm ended 2017 in a better place than 2016.

In State Farm’s annual financial results, the company experienced an underwriting loss of $6.5 billion last year, but saw its net worth grow to $97 billion, a nearly $10 billion increase from 2016.

State Farm spokesperson Roszell Gadson explained the company saw several areas of profit in 2017.

“Our results in 2017 include several positives. Underwriting results for our auto business improved compared to 2016, and State Farm Fire and Casualty Co., our life affiliates, State Farm Bank, and mutual funds each reported pre-tax operating profits,” said Gadson.

Much of the company’s losses stem from catastrophic events, such as wildfires in California. Gadson said the October and December wildfires were a major factor in the company’s underwriting loss for the year.

“Our catastrophe claim costs for our fire affiliates were above expected levels in 2017, including two events that were among the 25 most costly in our history,” Gadson explained. “Catastrophe claim costs for our auto affiliates were also above expected levels in 2017.”

CEO Michael Tipsord earned $8.5 million in 2017, compared to $8.1 million in 2016.

Patrick Baron can be reached at [email protected].

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