Citing unusually high storm losses, American Family Mutual Insurance Group of Madison, Wis., reported a 58 percent drop in net income for 2001. According to a COMTEX report, the company announced that net income dropped to $100.4 million from $236.7 million in 2000.
Catastrophic storm losses for 2001 totaled $834.9 million in catastrophic storm losses, 43 percent more than the previous high of $583.3 in 1998. American Family policyholders filed 320,700 storm claims in 2001, compared with 189,000 in 2000 and 135,600 in 1999.
Although total revenue rose 7.4 percent from $4.4 billion in 2000 to over $4.7 billion in 2001, equity fell to $3.3 billion from $3.7 billion in 2000.
The company, which currently operates in 15 states, plans to expand operations to Idaho and Utah on July 1. It moved into Nevada in early 2001 and Oregon in January 1998. It expects that a geographic expansion into states with less hailstorm and tornado activity will spread its risk, in addition to more providing more sales opportunities for American Family agents.
Topics Profit Loss
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