Even with pandemic-driven refunds and rate decreases, State Farm made a lot of money in 2020.
The Bloomington-based company's annual financial report showed net income of $3.7 billion. That's well into positive territory, but down by more than a third from 2019. State Farm's net worth rose by 8.5%—thanks to stock market gains—to $126.1 billion.
State Farm's auto insurance business had an underwriting gain of $3.5 billion, but the company gave back $1.9 billion in dividends to policy holders because of pandemic-related drops in driving. State Farm property and casualty insurance companies had growth in auto policies and reported lower auto lines earned premiums for a second straight year.
The company said the decrease in auto earned premiums is a result of the company reducing rates to reflect less driving during the pandemic.
“We strive to help more people in more ways. In an unprecedented year like 2020, we focus on our core mission to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams,” said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney.
State Farm said its Mutual and other auto insurance affiliates lowered premiums by an average of 11% nationally, saving customers $2.2 billion over a six-month policy period.
Some have argued State Farm did not reduce rates enough, and the company and other insurers are defendants in class action lawsuits filed in Nevada.
Across all lines of its property and casualty business, State Farm had an underwriting gain of $777 million after dividends.
State Farm's health insurance and investment planning service areas had net losses. It’s homeowner division had an underwriting loss of $1.6 billion. Life insurance was in the black by $333 million.
State Farm - By The Numbers
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