State Farm Insurance had a pretty good year financially, according to results released by the Bloomington-based company. State Farm after tax net income was $3.2 billion. Spokesman Scott Callicott says that is in spite of Hurricane Sandy, western wildfires, and hail and wind events.
"Our catastrophe losses and expenses in 2012 exceeded expected levels. Catastrophe losses of the combined property and casualty companies on a net basis, that's after reinsurance, were $5 billion."
Catastrophe losses may have been higher than expected, but State Farm reports they were still $2 billion less than in 2011. State Farm had underwriting losses of $1.7 billion last year. But, Callicott notes that is a significant narrowing of red ink compared to the $4.5 billion underwriting loss 2011. And thanks to healthy company investment performance, he says company net worth grew by $4.6 billion.
"Given the volatile nature of our business we know there are going to be unprofitable years and really to maintain financial strength, we have to have years of positive operating years as well. It allows us to deliver on the promises made to our policy holders."
State Farm ended the year with total combined net worth of $65.4 billion.
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