State Farm
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A state-mandated, one-year moratorium on non-renewals is also in place. -
Insurers are fighting to recoup claims they have paid out.
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Independent litigation threatened a $4bn settlement with wildfire victims.
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The victims claim insurers shouldn’t get settlement cash before they’re made whole.
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The discrepancy between rising claim counts and favorable reserves is cause for concern.
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Mutuals struggle to react and adapt to a worsening loss environment.
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The downgrade reflects the company’s balance sheet strength, which AM Best assessed as weak.
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The carrier stopped accepting new HO business in the state last May.
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Personal lines rate filings are rising, even as some inflation drivers slow.
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Increased cat losses in property offset auto improvements.
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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.
Related
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State Farm slashes P&C UW loss in 2024 to $6.1bn
March 03, 2025 -
State Farm’s California subsidiary put on negative credit watch by S&P
February 26, 2025 -
State Farm pegs LA wildfire direct losses at $7.6bn
February 26, 2025