State Farm Cuts Auto Claims Costs by $1.6B
March 2, 2018—State Farm financials released Thursday indicate the business made $2.8 billion more in premiums, cut auto claims and loss adjustment expenses $1.6 billion.
Underwriting expenses like overhead, agents and ads grew by $200 million from 2016's $10 billion.
The entire State Farm property and casualty business lost $1.7 billion pre-tax, up from $1.2 billion in 2016.
State Farm earned $41.6 billion in auto insurance premiums and paid out $34.2 billion in claims in 2017 versus $38.8 billion in premiums and $35.8 billion in claims in 2016.