[StBernard] State Farm posts $5.3 billion profit

[Westley Annis]

By JAN DENNIS


THE ASSOCIATED PRESS

BLOOMINGTON, Ill. - State Farm Insurance, the nation's largest insurer, said
Thursday profits climbed 65 percent in 2006 as claims dipped amid a
relatively tranquil year for hurricanes and other natural disasters.
 
The Bloomington-based insurer posted earnings of $5.3 billion, up from $3.2
billion the year before when payouts soared after a flurry of hurricanes,
including Katrina, the costliest disaster in U.S. history.
 
State Farm said catastrophe losses dipped by $4.1 billion from 2005, when
the company paid out a record $6.3 billion for claims and expenses in the
aftermath of Katrina, Rita and other tropical storms.
 
Revenue, which includes premium revenue, earned investment income and
realized capital gains, totaled $60.5 billion in 2006, up from $59.2 billion
a year earlier.
 
The company also said Thursday it will pay a record $1.25 billion in
dividends to auto policyholders after posting better-than-expected profits
in its auto-insurance lines.