STATE FARM’S 2016 INCOME FALLS 94% ON WIDER UNDERWRITING LOSS

US insurer State Farm saw its motor insurance operation’s record worst underwriting loss on record in 2016. The property/casualty segment’s overall underwriting loss rose to $5.5bn from $2.1bn, offsetting the group’s 10% increase in investment and other income to $4.4bn. The underwriting loss in motor insurance climbed to $7.0bn from $4.4bn, as earned premiums rose 6.9% to $38.8bn and claims costs increased 15.5% to $35.8bn. Net income across the group fell to $400m, a 95% year-on-year reduction. The homeowners, commercial multi-peril and other segment saw underwriting income fall to $1.6bn from $2.1bn, as earned premiums increased 2.7% to $20.4bn but were outpaced by claims costs, which rose 9.0% to $13.3bn.