BLOOMINGTON — State Farm, the Twin Cities' largest employer, reported its 2019 financial numbers Friday, with its property-casualty companies reported a combined underwriting gain of $777 million for 2019 on earned premium of $64.8 billion, compared with an underwriting gain of $1.7 billion on earned premium of $65.2 billion for 2018.
The numbers were among the Bloomington-based insurer's 2019 financial results released Friday afternoon.
The 2019 underwriting gain, combined with investment and other income of $5 billion, resulted in a property-casualty pre-tax operating gain of $5.7 billion.
The lower underwriting gain in 2019 was driven by higher losses and lower earned premium compared with 2018, the insurer said in its financial statement.
Total revenue — including premium revenue — earned investment income and realized capital gains was $79.4 billion for 2019 compared with $81.7 billion for 2018.
State Farm reported a net income of $5.6 billion for 2019, compared with $8.8 billion for 2018.
The net worth for the State Farm group ended 2019 at $116.2 billion compared with $100.9 billion at year-end 2018. The change was primarily because of an increase in the value of the property-casualty companies' unaffiliated stock portfolio, driven by increases in the U.S. equities market.
State Farm life companies paid out nearly $600 million in dividends to policyholders and ended 2019 with $959 billion in total life insurance in force.
State Farm said in its financial statement, "As the number one auto and homeowners' insurer in the U.S. and a leader in individual life insurance, State Farm is committed to serving its policyholders and remains a strong choice for insurance and financial services needs."
"Our focus of putting customers first for nearly 98 years continues to underscore our position as the national leader in protecting people," Jon Farney, senior vice president, treasurer and chief financial officer, said in a statement. "Each year, we help millions of our customer recover from the unexpected and live life confidently with the protection we provide."
"Our financial strength, along with our local presence and broad product offerings have earned us the loyalty of our customers and are the reasons more customers are choosing State Farm," he continued. "Our agents, their teams and our employees are committed to providing customers and communities with the products and service they expect from their Good Neighbor."
State Farm insurance operations consist of 11 property-casualty companies and two life companies. The property-casualty companies are primarily engaged in automobile, health, homeowners, commercial multiple peril and reinsurance lines of business.
The life companies are primarily engaged in individual life insurance and annuity business. The State Farm group also provides banking products and makes mutual funds available through affiliated companies. State Farm provides insurance and financial services' products across nearly 84 million policies and accounts.
The State Farm auto insurance business represented 64 percent of the property-casualty companies' combined net written premium. Earned premium was $41.5 billion, incurred claims and loss adjustment expenses were $32 billion and all other underwriting expenses totaled $10.3 billion. The underwriting loss was $764 million.
Comparable 2018 figures were earned premium, $42.7 billion; incurred claims and loss adjustment expenses, $31.2 billion; all other underwriting expenses, $10.4 billion; underwriting gain, $1.1 billion.
The net written premium for the remainder of State Farm's property-casualty business represented 35 percent of the property-casualty companies' combined net written premium. Earned premium was $22.4 billion. Incurred claims and loss adjustment expenses were $14.8 billion and all other underwriting expenses totaled $5.6 billion. The underwriting gain was $2 billion.
Comparable 2018 figures were earned premium, $21.6 billion; incurred claims and loss adjustment expenses, $15 billion; all other underwriting expenses, $5.7 billion; underwriting gain, $928 million.
Health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $66 million, excluding the change in the premium deficiency reserve. Net written premium was $707 million.
Comparable 2018 figures were underwriting loss, $91 million; net written premium, $703 million.
In 2019, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.5 billion and $578 million in dividends to policyholders. Net income for 2019 was $673 million, with $959 billion in total life insurance in force at the end of 2019.
Comparable 2018 figures were premium income, $5.4 billion; dividends to policyholders, $577 million; net income, $706 million; total life insurance in force $927 billion.
For State Farm Bank, net income for 2019 was $59 million with total assets at $16.4 billion.
Comparable 2018 figures were $35 million in net income and $16.9 billion in total assets.
Total assets under management for the Investment Planning Services' operation at the end of 2019 were $12.7 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $22 million for 2019.
Comparable figures for 2018 were total assets under management, $11.2 million; and net income, $7 million.
State Farm is McLean County's largest employer with more than 14,000 employees.
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Contact Paul Swiech at 309-820-3275. Follow him on Twitter: @pg_swiech.
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