A string of spring storms across the Midwest caused American Family Insurance Co. to pay a record $1.1 billion in storm losses last year.
Other insurers, including the nation’s largest insurer, State Farm Insurance, paid out less in storm claims last year after record amounts in 2005, when Hurricanes Katrina and Rita struck the Gulf Coast.
But American Family, which does not operate in that region, saw losses nearly triple from $390.7 million in 2005 because of storms that hit its main business areas, including Kansas, Iowa and its home state of Wisconsin, the Madison-based company said this week.
The storm losses were double what the company had anticipated, spokesman Steve Witmer said.
American Family said that net income for 2006 was $24.4 million, down from $671.5 million the year before.
The costliest storm for the company last year was a mid-April hailstorm that hit Iowa, southern Wisconsin and Indiana, generating $266.5 million in losses. Wind and hail storms in Kansas and Missouri in March resulted in $215.2 million in claims, while a storm in August throughout Minneapolis caused $116.9 million in losses, the company said.
The company’s previous record for storm payouts was in 2001, when a series of hailstorms generated $834.9 million in claims.
American Family provides life, auto, homeowners, health and other insurance to customers in 18 states. It is the largest insurer of homes and automobiles in Wisconsin and employs more than 8,200 people.
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