(Bloomberg) -- State Farm Mutual Automobile Insurance Co., the largest U.S. property-casualty insurer, said 2015 profit rose 48% on investment gains tied to pharmaceutical holdings.
Net income increased to $6.2 billion from $4.2 billion in 2014, the Bloomington, Illinois-based company said Friday in a statement on its website. The 2015 results included a $3 billion increase in capital gains as the insurer booked profits when Actavis Plc completed its takeover of Allergan Inc., and Merck KgaA acquired Sigma-Aldrich Corp. State Farm had stakes in both of the target companies.
The insurer is one of the largest investors in companies including Walt Disney Co., Johnson & Johnson, Exxon Mobil Corp. and Wells Fargo & Co., and counts on long-term stock gains to overcome losses from car coverage. State Farm’s auto underwriting loss widened to $4.4 billion in 2015 from $3.4 billion a year earlier, as claims costs rose.
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