State Farm Group reports $3.1-billion underwriting loss in 2010

State Farm Group’s property and casualty companies reported a $3.1-billion underwriting loss in 2010, a $600-million improvement from 2009.
The P&C operations offset its underwriting loss with a $4.1-billion investment gain, State Farm reported in a press release.
Overall, State Farm reported a net income of $1.8 billion in 2010, an improvement over an $800-million net income in 2009. “The improvement in 2010 was driven by the P&C companies’ improved results,” the company said in a release.
Auto represents 62% of the P&C units’ combined net written premium. Earned premium in this line was $31.4 billion, an increase of 1.6% from 2009. Incurred claims and loss adjustment expenses were $26.8 billion ($26.2 billion in 2009), contributing to an underwriting loss of $2.8 billion ($2.7 billion underwriting loss in 2009).
State Farm Group’s home insurance business (State Farm Fire and Casualty Company, State Farm Lloyd’s, State Farm General Insurance Company and State Farm Florida Insurance Company) reported earned premium of $17.3 billion, an increase of 5.9% from 2009. Incurred claims and loss adjustment expenses were $13.2 billion ($12.9 billion in 2009), contributing to an underwriting loss of $900 million ($1.5-billion underwriting loss in 2009).