State Farm reported an underwriting loss in 2014, though investment and other income still helped leave it with an operating profit.
The insurer’s combined property/casualty underwriting loss landed at $939 million, or 1.7 percent of nearly $57 billion of earned premium. In 2013, State Farm reported a $230 million underwriting gain and $54.5 billion in earned premium.
State Farm’s net income for 2014 reached $4.2 billion, with total revenue (including premium revenue, earned investment income and realized capital gains) hitting $71.2 billion for the year. That reflects a moderate decline over 2013, when State Farm produced $5.2 billion in net income on $68.3 billion of total revenue.
Additional State Farm results:
- Auto insurance, which reflects 62 percent of State Farm’s P/C companies’ combined net written premium, produced $35.3 billion in earned premium for 2014. That’s 5.6 percent higher than in 2013, in which the business booked $33.4 billion in earned premium. Underwriting losses reached $3.4 billion for the year, versus $2.4 billion in underwriting losses for 2013.
- State Farm Fire and Casualty Co., State Farm Lloyd’s, State Farm General Insurance Co. and State Farm Florida Insurance Co. produce 35 percent of the p/c companies’ combined net premium. That came down to $19.8 billion in earned premium for 2014, up 4.2 percent from 2013, when earned premium was booked at $10 billion. Underwriting gains for 2014 were listed at $1.9 billion, versus $2.1 billion in 2013.
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