State Farm has announced that although they faced a significant number of payments for catastrophe claims from some of the largest events in the quarter century history of the company, it has been able to maintain its financial strength. In 2011, State Farm’s combined net worth fell by $0.4 billion by the end of the year, bringing it to $60.8 billion. This includes the drop by $0.2 billion in the insurance company’s net worth in connection with the unaffiliated stock portfolios of the property and casualty companies. Moreover, those figures…
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Farmers Insurance and State Farm look to raise rates on home insurance in Texas
Farmers Insurance Group, one of the largest insurers in the U.S., has unveiled plans to raise rates on homeowner’s insurance policies in Texas. The new rates, if approved by state regulators, will take effect next year. The company cites the growing number of high cost claims that has been streaming in since 2008 as reason for higher premiums. The proposal for higher rates from Farmers Insurance comes on the heels of a similar proposal from State Farm that would have the same effect on homeowner’s policies. The insurer is seeking…
Read MoreHomeowners may see less coverage following changes made by State Farm
State Farm has announced that it will be making changes to the deductibles in its homeowner insurance, and consumer advocates are concerned that this will decrease the amount that will be paid on consumers’ claims. The insurer also released a notice to insurance regulators in Texas, stating its intentions to increase homeowner insurance rates, starting in October, by an average of 9.6 percent. State farm is the largest insurer in the state. It also announced that, starting in December, it would be moving all of its current customers over to…
Read MoreState Farm announces closure of over twenty field locations
Last year was notoriously costly for insurers around the world. Natural disasters have taken their toll on many companies, causing some to close their doors and others to reevaluate their plans for continued operation. Given the recent catastrophes already occurring this year, companies are taking steps to save more money. State Farm is one such company, announcing plans for the closure of nearly 24 field offices in Illinois, Indiana and Michigan. The big name insurer is looking to shrink the size of its operations. Offices that it will not be…
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