Michael L. Tipsord Chairman, President and Chief Executive Officer | Official website
State Farm has released its financial results for 2024, highlighting significant developments across its various insurance and financial services operations. The company saw an increase of over one million policies and accounts despite reporting underwriting losses in auto and fire insurance. The life insurance sector delivered $817 million in dividends to policyholders, achieving a record $122 billion in new policy volume.
Senior Vice President, Treasurer, and Chief Financial Officer Mark Schwamberger emphasized the company's role in supporting customers during challenging times: “After another year of catastrophe events, State Farm was there to help our customers recover from the unexpected and will continue to do so as we focus on our customers impacted by the devastating wildfires in California. As of February 26, we’ve received more than 11,750 total fire and auto claims related to the fires and have paid nearly $2.2 billion to our customers.”
State Farm Mutual Automobile Insurance Company's net worth rose to $145.2 billion at the end of 2024 from $134.8 billion in 2023. This change was attributed to increased value in their unaffiliated stock portfolio within the U.S. equities market, offset by pre-tax operating losses.
The Property-Casualty (P-C) group reported an earned premium of $103.0 billion with a combined underwriting loss of $6.1 billion, showing improvement compared to a $14.1 billion loss on earned premium of $87.6 billion in 2023.
Overall revenue for State Farm reached $123.0 billion in 2024, up from $104.2 billion in 2023, leading to a net income of $5.3 billion after accounting for realized capital gains.
The organization is committed to enhancing customer service through digital capabilities and maintaining its market position by investing in innovative products and technology solutions.
State Farm's insurance operations consist of fourteen P-C companies focusing on various lines including automobile and homeowners insurance, along with two life companies managing individual life insurance business.
In auto insurance, which comprises 65% of P-C's net written premium, State Farm reported an underwriting loss reduced to $2.7 billion from $9.7 billion the previous year.
Homeowners and other lines accounted for a net written premium representing 34% of P-C’s combined total with an underwriting loss reduced from $4.7 billion in 2023 to $3.6 billion.
For life insurance operations, premium income was reported at $6.7 billion with net income rising to $1.7 billion compared to the previous year's figures.
In health insurance operations under State Farm Mutual Automobile Insurance Company, there was an underwriting loss reported at $130 million for 2024.
Investment Planning Services saw assets under management rise to $15.2 billion while recording a combined net loss of $33 million for the year.
Each affiliate within State Farm must adhere individually to solvency requirements without relying on other entities' financial conditions or solvency statuses.