Big money losses

Q2
State Farm released the Q2'24 financial results for 12 of its P&C insurance carriers.

During the quarter, the group of companies reported a net underwriting loss of $4.35 billion, leading to a ~$5.7 billion underwriting loss for the first six month of the year. During the first six month of 2023, State Farm reported a net underwriting loss of $7.2 billion.

State Farm's auto carrier saw the biggest improvement, going from a $4.85 billion loss in the first six months of 2023 to a $3.26 billion loss for the same period this year. The auto carrier increased written premiums by ~$5.34 billion (20%) YoY to a total of $31.8 billion.

In 2023, State Farm had a combined underwriting loss of $14.1 billion across its P&C companies, but it ended the year with a net loss of $6.3 billion thanks to investment income and positive results from its life insurance business.

just another segment that's not sustainable. At some point in the near future the risk/reward for carrying insurance won't make sense.

And I just happened to get my 6 month auto policy renewal today. Up another $130 every 6 months.

26% increase in my premium since Oct 2022. And my cars are 2 years older, and I've increased my deductible from $500 to $2000. No accidents or tickets.

Not sustainable is right. This from April. The rate increases are over 10x greater than what they have been over the previous 4 years and more than double what they were in the "worst" years before that.

https://www.tdi.texas.gov/blog/auto-and-home-insurance-rate-changes.html