Reinsurance News
State Farm
S&P downgrades State Farm General Insurance credit ratings on weak underwriting & wildfire impact
14th May 2025
S&P Global Ratings has lowered State Farm General Insurance’s (SFGI) financial strength and issuer credit ratings to 'A+' from 'AA', citing a significant deterioration in the company’s capital regulatory solvency ratios. The ratings remain on CreditWatch with negative implications. CreditWatch is S&P’s system used to indicate that a company's credit rating ... Read the full article
State Farm’s request for emergency interim rate increase conditionally approved
17th March 2025
California Insurance Commissioner Ricardo Lara has conditionally approved State Farm's request for an emergency interim rate increase following recent destructive wildfires in Los Angeles, provided the company can substantiate the need with data during a public hearing set for April 8, 2025. State Farm submitted its request in a letter to ... Read the full article
State Farm to retain $212m of $7.6bn LA wildfire loss after reinsurance
26th February 2025
State Farm General has estimated direct losses from the Los Angeles wildfires at $7.6 billion, with retained losses after reinsurance at $212 million and its share of FAIR Plan losses at $400 million. According to its latest update, State Farm General has paid out $1.75 billion on approximately 9,500 claims filed ... Read the full article
State Farm pays almost $500m to customers from LA wildfires
28th January 2025
As of January 27, 2025, auto and homeowners insurer State Farm has received over 10,100 claims for home and auto damage caused by the California wildfires, and has already paid nearly half a billion dollars to customers. This marks a significant increase from the 6,700 claims received as of January ... Read the full article
State Farm reports over 6,700 claims from LA wildfires
15th January 2025
Auto and homeowners insurer State Farm has received more than 6,700 home and auto claims, as of the morning of January 14th, 2025, from damages related to the recent wildfires in Los Angeles, California. State Farm remains the largest insurer group in the State of California, serving more than 8 million ... Read the full article
Ranked by 2023 NPW, health carriers again dominate list of world’s largest insurers
3rd January 2025
In terms of net premiums written (NPW), health insurance companies continued to dominate in 2023 as four out of the top five were US-based health insurers, with UnitedHealth Group holding on to the top spot for the 10th year in a row with NPW growth of 13%. Our ranking of ... Read the full article
State Farm cements position as top US P&C insurer
18th July 2024
Ranked by 2023 total net premiums written (NPW), State Farm retains the top position in AM Best’s rankings of the top US Property and Casualty (P&C) underwriters, with its total NPW rising by a significant 19.1% to reach $92.6 billion in the year. Our directory of the ... Read the full article
California property insurance markets to continue facing pricing and availability pressures: ALIRT
22nd March 2024
With State Farm General Insurance Company (SFGIC) announcing it will be exiting more California property risks starting in mid-2024, ALIRT Insurance Research has noted that state homeowners and commercial property insurance markets will likely continue to face pricing and availability pressures. SFGIC's recent pull includes approximately 30,000 largely non-commercial risks ... Read the full article
State Farm to pull out of 72,000 California insurance policies
21st March 2024
State Farm General Insurance Company has announced that it will non-renew approximately 30,000 California homeowners, rental dwelling, and other property insurance policies. If you recall, last May, the insurer halted new homeowners policies being issued in the state, citing exposure related issues and a challenging reinsurance market environment. However, State Farm General ... Read the full article
State Farm experiences premium growth while reporting underwriting losses in 2023
5th March 2024
Auto and homeowners insurer State Farm has announced its 2023 financial results, reporting earned premium of $87.6 billion and a combined underwriting loss of $14.1 billion across its P&C group of companies. This result compared to an underwriting loss of $13.2 billion on earned premium of $74.3 billion in 2022. According to ... Read the full article
Host of re/insurers seek reimbursement after paying out $1bn for Lahaina wildfires
25th January 2024
More than 140 insurance industry plaintiffs, including State Farm, Swiss Re and Lloyd's, have reportedly joined lawsuits filed against utilities and landowners related to the Maui, Hawaii wildfires, which destroyed much of Lahaina and killed 100 people back in August of 2023. According to a Honolulu Civil Beat report, insurance industry ... Read the full article
AM Best turns negative on State Farm citing cat losses & regulatory environment
25th September 2023
AM Best has revised the outlooks to negative from stable for State Farm and certain subsidiaries, citing recent adverse underwriting experience in the private passenger auto insurance line of business, the challenging regulatory environment, and continued elevated catastrophe-related loss experience in many parts of the country. Spelt out, the rating agency ... Read the full article
Rep. Schiff urges FIO to investigate impacts of climate change on insurance coverage
24th July 2023
Congressman Adam Schiff has penned a letter to the U.S. Department of Treasury Federal Insurance Office (FIO) urging them to investigate how climate change is impacting insurance coverage options for homeowners following the news that State Farm and Allstate will no longer provide new home insurance policies in California. Chiefly, the ... Read the full article
Hagerty raises $105m in capital from State Farm, Markel Group & Hagerty family
26th June 2023
Specialty insurance provider Hagerty has raised $105 million in capital from strategic investors, including State Farm, Markel Group and the Hagerty family. According to the firm, the capital raise is comprised of $80 million of convertible preferred equity, which closed on June 23 2023, as well as a $25 million commitment of long-term ... Read the full article
Senate Budget Committee launches investigation into insurance companies’ climate risk evaluation, fossil fuel support
12th June 2023
The Senate Budget Committee, led by Senator Whitehouse (D-RI), alongside Senators Wyden (D-OR) and Sanders (I-VT), initiated an investigation into the evaluation of climate-related risks by major U.S. insurance companies. The committee seeks to understand why these companies continue to support and underwrite fossil fuel expansion projects that contribute to climate ... Read the full article
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