This is not good news

[Loneaggie]

I'm far from an insurance expert. But I'm not sure that home insurance is "winning" for State Farm. All I am basing this on is their financial status reported in 2023: https://newsroom.statefarm.com/2023-financial-results/

The TLDR portion I think is:
"he net written premium for the remainder of the State Farm P-C business represented 35 percent of the P-C companies’ combined net written premium. Earned premium was $30.5 billion. Incurred claims and loss adjustment expenses were $28.0 billion and all other underwriting expenses totaled $7.1 billion. The underwriting loss was $4.7 billion."

So SF lost 4.7 billion dollars in 2023 on home insurance. They made money in other markets sure. The net worth of the company is still like $130 billion, they still lost billions of dollars that year. I have to imagine that NC and CA in the last several months is a beating. Like I said, I'm not an insurance expert, but looking at those numbers, if I was a stock holder I'd be mad if they weren't dropping high risk policies.

[Huntingfool]

Newsflash!!

yeah 2700 views and 45 responses means it was "old" news

[SmTx]

I'm far from an insurance expert. But I'm not sure that home insurance is "winning" for State Farm. All I am basing this on is their financial status reported in 2023: https://newsroom.statefarm.com/2023-financial-results/

The TLDR portion I think is:
"he net written premium for the remainder of the State Farm P-C business represented 35 percent of the P-C companies’ combined net written premium. Earned premium was $30.5 billion. Incurred claims and loss adjustment expenses were $28.0 billion and all other underwriting expenses totaled $7.1 billion. The underwriting loss was $4.7 billion."

So SF lost 4.7 billion dollars in 2023 on home insurance. They made money in other markets sure. The net worth of the company is still like $130 billion, they still lost billions of dollars that year. I have to imagine that NC and CA in the last several months is a beating. Like I said, I'm not an insurance expert, but looking at those numbers, if I was a stock holder I'd be mad if they weren't dropping high risk policies.

State Farm is private.

[Loneaggie]

State Farm is private.

I knew I wasn’t an expert. In a way though their policyholders have a stake. Their risks drive my premiums?

[Atfulldraw]

I'm far from an insurance expert. But I'm not sure that home insurance is "winning" for State Farm. All I am basing this on is their financial status reported in 2023: https://newsroom.statefarm.com/2023-financial-results/

The TLDR portion I think is:
"he net written premium for the remainder of the State Farm P-C business represented 35 percent of the P-C companies’ combined net written premium. Earned premium was $30.5 billion. Incurred claims and loss adjustment expenses were $28.0 billion and all other underwriting expenses totaled $7.1 billion. The underwriting loss was $4.7 billion."

So SF lost 4.7 billion dollars in 2023 on home insurance. They made money in other markets sure. The net worth of the company is still like $130 billion, they still lost billions of dollars that year. I have to imagine that NC and CA in the last several months is a beating. Like I said, I'm not an insurance expert, but looking at those numbers, if I was a stock holder I'd be mad if they weren't dropping high risk policies.

B.
S.

There are so many ways that these insurance companies manipulate those numbers.....

First of all, underwriting expenses of 7.1 billion on 28 billion in premiums? Sounds like 25% overhead to me...but yet they want to fight when paying O&P on claims
Are you telling me that Elon couldn't shave some of that fat?
Some of that can be attributed to what I call beneficial accounting for tax purposes, but a lot is simply wasteful.
Wasting money, showing a loss for overspending.

Second, the new game is buying reinsurance through an affiliated or even wholly owned subsidiary, often offshore.
Slimy, but perfectly legal.
Pay themselves, show a loss due to high reinsurance.

Third, State Farm buys a skyscraper, puts their name on the side and then leases it back to themselves at a giant profit.
The company shows a loss due to high rents.

Fourth, mismanagement.

I can tell you that my little company has recovered over a half a billion dollars in disputed claims.
That means that the insurance company denied or underpaid to the tune of $500 million dollars, just on claims that came through my office.
Along the way, they paid lawyers, adjusters, desk adjusters, managers, agents, engineers, appraisers, umpires, more lawyers.....
The amount of money they spend fighting just little ol' me is absolutely staggering.

In closing, an insurance company takes your premium in trust.
You trust that money will be there when you file a claim.
They aren't spending those dollars wisely, and in some cases, it's just outright fraud on the part of the insurance companies to make these outlandish claims about losing money.

[rladner]

I moved a mile down the road and couldn’t get coverage from the same provider but then again I’ll never deal with txfb again

mutiple big companies wouldn’t cover us in Coppell due to wind/hail damage history in the area

Yep, my current insurer has sent notice of non renewal. Need to find a new one soon

[hooligan]

Yep, my current insurer has sent notice of non renewal. Need to find a new one soon

we ended up with Farmers and they were good to work with, let me know if you want her contact info, we're over by Lakeside now but I'm sure they'll do y'alls side of town. Only thing that sucks is deductible is now 2% but I think that is being industry standard

[Landrover]

I actually thought this was a old thread but that is because the subject has been discussed before. My parents (Mom) cannot get coverage on the house thru any national normal insurers that were in the state of Louisiana. They pulled out of home insurance a decade ago due to constant hurricanes. The co op "Louisiana Insurers" (or something like that) is crazy high but you gotta have it. Sadly, most do not have it and are putting their faith in the government if the BIG ONE hits again. Mom is probably 1 or 2 of the people on her street that can afford it for the house and duplexes.
YES, that trend is spreading and will continue to spread once the insurers won their case in federal court that is was alright to leave markets high and dry from a insurance perspective. It is a BUSINESS, if they cant make a profit why run the business? Sad, but it is going to take some serious innovation to make lots of places affordable in the next 25 years.

[Chuy]

b.
S.

There are so many ways that these insurance companies manipulate those numbers.....

First of all, underwriting expenses of 7.1 billion on 28 billion in premiums? Sounds like 25% overhead to me...but yet they want to fight when paying o&p on claims :d
are you telling me that elon couldn't shave some of that fat?
Some of that can be attributed to what i call beneficial accounting for tax purposes, but a lot is simply wasteful.
Wasting money, showing a loss for overspending.

Second, the new game is buying reinsurance through an affiliated or even wholly owned subsidiary, often offshore.
Slimy, but perfectly legal.
Pay themselves, show a loss due to high reinsurance.

Third, state farm buys a skyscraper, puts their name on the side and then leases it back to themselves at a giant profit.
The company shows a loss due to high rents.

Fourth, mismanagement.

I can tell you that my little company has recovered over a half a billion dollars in disputed claims.
That means that the insurance company denied or underpaid to the tune of $500 million dollars, just on claims that came through my office.
Along the way, they paid lawyers, adjusters, desk adjusters, managers, agents, engineers, appraisers, umpires, more lawyers.....
The amount of money they spend fighting just little ol' me is absolutely staggering.

In closing, an insurance company takes your premium in trust.
You trust that money will be there when you file a claim.
They aren't spending those dollars wisely, and in some cases, it's just outright fraud on the part of the insurance companies to make these outlandish claims about losing money.

this 1000000%

[jmoore2006]

Decided years ago while living here on the gulf that i needed to own my place outright and glad i have. Self insured for years now and must say that not being held hostage and told you will pay or else is nice. Insurance down here is nothing but a mob and a ponzi scheme

[cehorn]

Insurance is one of the biggest scams around!! I don't for a second believe any of them are losing money, they are all lying about losing money. Maybe they aren't meeting their profitability goals or managements projections to base the stock price on, etc. but THEY ARE NOT LOSING MONEY! As others have stated, you don't have commercial after commercial on tv, buy naming rights to stadiums, etc. if you are losing money. And if you are losing money I'll point to those costs before anything else they point to when raising rates. I have never once considered buying insurance because their name was on a stadium or because Flo was in their commercial instead of Aaron Rodgers. SCAM

[flywise]

3-4 k for insurance comes with hundreds of thousands in financial protection or 3-10k year for lease and feed...comes with 100-160" of bone
not sure which one is the scam

[BRUTE 23]

While the legislature is meeting they should require insurers to either write the whole state, or none of it.

Uh... no thank you. I have a great insurance company and they will not insure homes or vehicles in the Houston area. I'm not subsidizing those policies.