State Farm said that more than $6 billion in hurricane losses contributed to a 39 percent drop in net income for 2005, the first time it has publicly reported its losses from this past season's hurricanes.
The Bloomington, Ill.-based insurer said today that hurricane losses and loss adjusted expense totaling $6.3 billion, after reinsurance, contributed to the reduction in the company's after-tax net income. State Farm reported net income of $3.24 billion, down from $5.31 billion reported in 2004.
The company said its property-casualty companies reported a pretax operating profit of $3.5 billion in 2005, compared with $5.5 billion for 2004. Investment and other income was $4.3 billion, compared with $3.57 billion in 2004. The p-c business reported an underwriting loss of $779 million, compared with an underwriting gain of $1.96 billion for 2004.
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