State Farm Faces Record Underwriting Losses in 2023
State Farm has reported a staggering $14 billion underwriting loss for 2023, exceeding the $13 billion loss of the previous year. The primary contributors were elevated claims severity and significant catastrophe activity, leading to a $5 billion loss in property lines. Although the auto insurance segment showed some improvement, it still suffered a $9.7 billion loss despite earned premiums increasing to $56.1 billion.
However, State Farm remains financially resilient with a net worth of $134.8 billion. This highlights the company's robust financial foundation despite challenging market conditions.
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