State Farm posted a net loss of $6.3 billion in 2023, driven largely by a "significant increase" in catastrophe claims by homeowner policyholders, the Bloomington-based company reported Thursday.
That $6.3 billion net loss is actually an improvement from 2022, when it lost $6.7 billion. State Farm total revenue last year was $104.2 billion.
State Farm said in a release that its unfavorable operating results came from "continued elevated claims severity and significant catastrophe activity," for both auto and homeowners insurance.
“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,” Senior Vice President, Treasurer and Chief Financial Officer Mark Schwamberger said in a statement.
Schwamberger said State Farm "remains financially strong." Stock market gains helped boost State Farm’s net worth by several billion dollars, to $134.8 billion at the end of the year. That's up from $131.2 billion in 2022.
The State Farm property and casualty group of companies reported earned premium of $87.6 billion and a combined underwriting loss of $14.1 billion. Earned premium rose $13.3 billion from 2022. Underwriting loss last year was $900 million less than it was in 2022.
The company cited improvement in auto underwriting results, but increased homeowner catastrophe claims more than offset the auto gain. Auto insurance represented 64% of the property and casualty business. Homeowner insurance was 35% of the P-C business.
The company said it issued a record $118 billion in new life insurance policy volume bringing for a year-end total of $1.1 trillion in life insurance in force.
“As the number one auto and homeowners insurer in the U.S. and a leader in individual life insurance, State Farm is committed to serving its policyholders and remains a strong choice for insurance and financial services needs,” the company said.
