State Farm

Insurers are fighting to recoup claims they have paid out.

Independent litigation threatened a $4bn settlement with wildfire victims.

The victims claim insurers shouldn’t get settlement cash before they’re made whole.

The discrepancy between rising claim counts and favorable reserves is cause for concern.

Mutuals struggle to react and adapt to a worsening loss environment.

The downgrade reflects the company’s balance sheet strength, which AM Best assessed as weak.

The carrier stopped accepting new HO business in the state last May.

Farney will take over as CEO on June 1.

Personal lines rate filings are rising, even as some inflation drivers slow.

Increased cat losses in property offset auto improvements.

Cooling CPI metrics and improving loss ratios indicate a positive shift for the personal auto industry, but results are not yet back to where they need to be.

Personal auto carriers risk falling behind in the battle between loss costs and approved rate declines, while homeowners carriers’ double-digit filings might not be enough to keep up.