S&P Affirms State Farm Group Members Rtgs; Outlook Stable
Standard & Poor’s has affirmed its ‘AA’ counterparty credit and financial strength ratings on State Farm Mutual Automobile Insurance Co. (SFMA) and five other interactively rated members of the State Farm Insurance Group (State Farm).
Standard & Poor’s also affirmed its ‘AA-‘ counterparty credit and financial strength ratings on related entity, State Farm Lloyds (SF Lloyds). The outlook is stable.
“The affirmations are based on State Farm’s leading business position in personal lines insurance including auto, homeowners, and life; the results of the company’s better than expected pretax operating loss; extremely strong capital and risk spread; and life insurance group profile commensurate with the rating, offset by the continued unfavorable operating results,” said Standard & Poor’s credit analyst Charles Titterton.
State Farm is the world’s largest writer of personal auto and homeowners’ multiperil insurance and a major provider of individual life insurance. With the exception of SF Lloyds, which is rated one notch below the other companies, all rated operating units are considered to have a core relationship with SFMA, the parent company, and, therefore, are accorded the ratings on SFMA. SF Lloyds is considered strategically important to SFMA.
Standard & Poor’s believes that State Farm’s property/casualty (P/C) earnings will continue recovering in 2003, and that a small pretax operating profit is possible.
In 2004, earnings should improve further as the organization benefits from a continuing strengthening in pricing adequacy and initiatives in loss mitigation and underwriting. Assuming historically average losses from natural events and frequencies holding steady, Standard & Poor’s expects that State Farm’s P/C operations should book a pretax operating profit of $2 billion.
- California Chiropractor Sentenced to 54 Years for $150M Workers’ Comp Scheme
- Jury Awards $80M to 3 Former Zurich NA Employees for Wrongful Termination
- 4,800 Claims Handled by Unlicensed Adjusters in Florida After Irma, Lawsuit Says
- Beyond the Claim: How Social Canvassing is Transforming Insurance Fraud Detection
- CoreLogic Report Probes Evolving Severe Convective Storm Risk Landscape
- Mother of 8-Year-Old ‘Violently Sucked’ into Houston Hotel Pool Files Wrongful Death Suit
- Report: Vehicle Complexity, Labor ‘Reshaping’ Auto Insurance and Collision Repair
- California Sees Two More Property Insurers Withdraw From Market