In 2024, State Farm continued to fulfill its mission of helping people manage the risks of everyday life, recover from the unexpected and realize their dreams. We maintained our commitment to helping more customers and, in turn, saw an increase of more than one million policies and accounts. While auto and fire insurance companies within the State Farm group of companies reported underwriting losses, results improved over prior year. The State Farm life insurance companies reported $817 million in dividends to policyholders and issued a record $122 billion in new policy volume bringing the year-end 2024 individual life insurance in force to $1.2 trillion.
“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,” said Senior Vice President, Treasurer and Chief Financial Officer Mark Schwamberger. “Our customer-centered approach leads us to measure success in the number of promises kept. The financial strength of each affiliate is critical to our ability to keep those promises, and we will continue to take a state-specific approach in the way in which we operate.”
The net worth for State Farm Mutual Automobile Insurance Company ended the year at $145.2 billion compared to $134.8 billion at year-end 2023. The change during 2024 includes an increase in the value of the P-C companies’ unaffiliated stock portfolio, driven by increases in the U.S. equities market, partially offset by the P-C group of companies pre-tax operating loss. The State Farm P-C group of companies reported earned premium of $103.0 billion and a combined underwriting loss of $6.1 billion. This result compared to an underwriting loss of $14.1 billion on earned premium of $87.6 billion in 2023. The change over 2023 reflects significant improvement in auto lines underwriting results which was partially offset by an increase in homeowners incurred catastrophe claims. The 2024 underwriting loss, combined with investment and other income of $6.0 billion, resulted in a P-C pre-tax operating loss of $111 million, which compares to the $8.5 billion loss reported in 2023. Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was $123.0 billion for 2024 compared to $104.2 billion for 2023. State Farm reported a net income of $5.3 billion in 2024 compared to a net loss of $6.3 billion in 2023. The reported net income for 2024 includes the impact of $3.0 billion of realized capital gains, net of tax.
The financial strength of State Farm Mutual Automobile Insurance Company and each of its affiliates is key to fulfilling our promises to customers in the future and expanding and enhancing the way we serve customers. We are committed to investing in our business, expanding our digital capabilities to enhance our customers’ experience, and providing an offering that makes us the first and best choice in the market. We remain focused on growing our customer base, which supports our ability to invest in our products and services to enhance the overall customer experience through better customer service, more innovative insurance products and better technology solutions (such as user-friendly apps and online tools).
The State Farm insurance operations consist of fourteen P-C companies and two life companies, each of which is managed on an individual affiliate level. The P-C companies are primarily engaged in automobile, health, homeowners, commercial multiple peril (CMP) and reinsurance lines of business. The life companies are primarily engaged in individual life insurance and annuity business. The State Farm group of companies provides insurance and financial services products across over 96 million policies and accounts. In addition, the State Farm group makes third party products available to meet a variety of customer needs including, but not limited to, annuities, banking, health, mutual funds and pet medical.
Auto – The State Farm auto insurance business represented 65 percent of the P-C companies’ combined net written premium. Earned premium was $67.5 billion. Incurred claims and loss adjustment expenses were $56.2 billion and all other underwriting expenses totaled $14.0 billion. The underwriting loss was $2.7 billion.
Comparable 2023 figures were: earned premium, $56.1 billion; incurred claims and loss adjustment expenses, $53.4 billion; all other underwriting expenses, $12.4 billion; underwriting loss, $9.7 billion.
Homeowners, CMP, Other – The net written premium for the remainder of the State Farm P-C business represented 34 percent of the P-C companies’ combined net written premium. Earned premium was $34.5 billion. Incurred claims and loss adjustment expenses were $30.1 billion and all other underwriting expenses totaled $7.9 billion. The underwriting loss was $3.6 billion.
Comparable 2023 figures were: earned premium, $30.5 billion; incurred claims and loss adjustment expenses, $28.0 billion; all other underwriting expenses, $7.1 billion; underwriting loss, $4.7 billion.
Life – In 2024, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $6.7 billion and $817 million in dividends to policyholders. Net income for 2024 was $1.7 billion. There was $1.18 trillion in individual life insurance in force at the end of 2024.
Comparable 2023 figures were: premium income, $6.5 billion; dividends to policyholders, $725 million; net income, $1.2 billion; individual life insurance in force, $1.15 trillion.
Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $130 million, excluding the change in the premium deficiency reserve. Net written premium was $731 million.
Comparable figures for 2023 were: underwriting loss, $106 million; net written premium, $729 million.
Investment Planning Services – Total assets under management for the Investment Planning Services operation at the end of 2024 were $15.2 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $33 million in 2024.
Comparable figures for 2023 were: total assets under management, $13.8 billion; net loss, $40 million.
Although financial information is presented on a group/line of business basis, State Farm Mutual Automobile Insurance Company and each of its affiliates must meet solvency and regulatory requirements on an individual entity-by-entity basis without regard to the solvency or financial condition of any other affiliated entity.
Securities distributed by State Farm VP Management Corp.
State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products. Neither State Farm nor its agents provide investment, tax, or legal advice.
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