State Farm Leans into the Storm
For most carriers 3rd quarter 2022’s underwriting results scream retrenchment: double digit deterioration in combined ratios are leading carriers to radically dial back their marketing machines – only a handful of carriers are adding significant volume to their book – most of them small and/or niche players.
But then there’s State Farm who despite its eye watering 20-point deterioration in its personal auto loss ratio has grown its book by ten percent since 3Q 2021.
Why? The simplest explanation is that after losing share in the previous few years, the nation’s biggest P&C carrier is using today’s market turmoil as an opportunity to win some of it back. But everyone else is asking: “yes but will it be profitable business”.
Only time will tell.
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