State Farm Profit Falls on $7 Billion Auto Underwriting Loss
- Net income at property-casualty insurer fell 94% in 2016
- Company reports first full-year results under CEO Tipsord
Cars sit in rush hour traffic on the 405 Freeway at Olympic Blvd in this aerial photograph taken over Los Angeles.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
State Farm Mutual Automobile Insurance Co., the largest U.S. property-casualty insurer, said annual profit fell 94 percent on car insurance claims costs.
Net income dropped to $400 million from $6.2 billion in 2015, when results included one-time gains in the stock portfolio tied to pharmaceutical deals, the Bloomington, Illinois-based company said Tuesday in a statement. The underwriting loss from auto insurance widened to $7 billion from $4.4 billion.