State Farm reports $14.1 billion P&C underwriting loss

State Farm has released its financial results for 2023.

The number one auto and homeowners insurer in the country reported earned premium of $87.6 billion and a combined underwriting loss of $14.1 billion across its 14 P&C companies. In 2022, State Farm reported an underwriting loss of $13.2 billion on earned premium of $74.3 billion.

The insurer’s auto business recorded an underwriting loss of $9.7 billion, compared to a $13.4 billion underwriting loss in 2022.

The homeowners unit had an underwriting loss of $4.7 billion, compared to a gain of $849 million in 2022.

The 2023 underwriting loss, combined with investment and other income of $5.6 billion, resulted in a P&C pre-tax operating loss of $8.5 billion, which compares to the $8.3 billion loss reported in 2022.

State Farm reported net income of $1.2 billion for its life insurance companies.

Overall, State Farm reported a net loss of $6.3 billion in 2023 compared to a net loss of $6.7 billion in 2022.

In 2023, the insurer added over 3 million policies and accounts and the total count now stands at ~94 million.

The net worth for State Farm Mutual Automobile Insurance Company ended the year at $134.8 billion compared to $131.2 billion at year-end 2022.

“While we improved overall auto lines profitability in 2023, our results remain below the level we expect and we’re taking a state-specific approach as we operate. Catastrophe losses were widespread in 2023, and our claims and operations team members, along with the State Farm independent contractor agents, responded throughout the year to help customers. State Farm Mutual Automobile Insurance Company remains financially strong, and it is that strength that allows us to handle uncertainty and serve more customers in more ways over the long term.” – State Farm’s Senior Vice President, Treasurer and Chief Financial Officer Mark Schwamberger.