Bloomington, Ill.-based State Farm Insurance announced that profit rose 3 percent last year on the strength of higher auto policyholder dividends despite a steep decline in property casualty underwriting. The company said nearly half of the 79 percent drop in underwriting, to $621 million from $3 billion in 2006, was due to a fourth consecutive year of auto rate decreases.
State Farm’s net income rose to $5.46 billion in 2007 from $5.32 billion a year earlier. It was the insurer’s fifth straight profitable year after significant losses in 2001-2002. Total revenue rose 1.8 percent to $61.6 billion from $60.5 billion.
Chief Financial Officer Michael Tipsord downplayed the P/C decline. “Because there can be significant volatility in the insurance business, we must avoid the temptation of attributing too much significance to short-term financial results – long-term sustainability is the key,” he said in a statement.
Source: State Farm Insurance Co.
Topics Trends Profit Loss State Farm
Was this article valuable?
Here are more articles you may enjoy.
US Appeals Court Rejects Challenge to Trump’s Efforts to Ban DEI 
A 10-Year Wait for Autonomous Vehicles to Impact Insurers, Says Fitch 
Florida Insurance Costs 14.5% Lower Than Without Reforms, Report Finds 
Florida’s Commercial Clearinghouse Bill Stirring Up Concerns for Brokers, Regulators From This Issue
