State Farm Returns $5 Billion to Auto Policyholders

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3▲2 ▼0Impact / 5
Summary · why it matters

State Farm, the largest U.S. auto insurer, is returning $5 billion to auto policyholders through a one-time dividend and rolling back rates in several states. The mutual insurer swung from a multi-year underwriting loss to a large surplus, collecting far more in premiums than it paid in claims and expenses. Progressive posted second-quarter revenue of $22.70 billion and net income of $3.31 billion with a combined ratio of 87.3, while Allstate reported revenue of $18.60 billion and a property-liability combined ratio of 86.6, returning $3.5 billion to shareholders and authorizing a new $4.0 billion buyback. The key question for investors is whether combined ratios drift back toward 90 as rate cuts earn in, which would mark a cycle peak rather than a new baseline.

Impact on assets 3

Financials▲ · 2 stocks
Progressive Corp
PGR
▲ PositiveCapitalrelevance

Strong Q2 revenue and net income with combined ratio of 87.3

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Off-coverage companies 1

State FarmPrivate▲ Positive
Capitalrelevance

Returning $5B to policyholders after underwriting surplus