Allstate reporting $1 bill in losses for June. If it's any indication, SF is probably doing just as bad or worst. I know we don't report as a mutual but I am really concerned about my job. Everyone is super tight lipped.
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@1xgc+1nLZREbd- no clue on how the pension is funded or works? Ignorant as F.
While many states have file and use SF typically seeks approval ahead of time. Reason, even in file and use the DOI has to ultimately approve. If they do not, then you have to refund whatever amount they did not approve which adds additional costs and a lot of customer confusion with refilling and potentially refunds.
Most states have “File and use” rating. Carriers file their rates but can use them without approval. The catch is that the carrier has to follow the filed rates and rules to the letter. No “on the spot” exceptions or discounts.
Rate increases need to be approved by individual state DOI’s with the exception of Illinois. Depending on circumstances they often get negotiated down or in some cases rejected. There are no fines associated with rate filings.
Pension plan is fully funded and not part of the problem.
How could a $2.9 billion loss in the first quarter not cause cuts to expenses....including us? Rate increases alone will stop the bleeding. SF needs to dump frequency and shock policy holders regardless of state fines. The fines will be nothing compared to the loss ratio points hitting us.
No need to eliminate the pension. Every day the number of people drawing from it shrinks….
Eliminate the pension. The biggest drain on the company
Investment returns are still good, rate hikes are happening along with near historic Q1 and Q2 growth. The outlook for 2024 is still good. No reason to worry about jobs.
As a Mutual Company SF has no external parties to report to, with the exception of rating agencies and they don’t share it publicly.
At this rate, they are looking at another year of 12 to 14 billion underwriting loss. Good times...
On May 24 the Insurance Journal reported State Farm’s first quarter 2023 underwriting results as a loss of $2.9 billion. When losing money in this business too much/too fast of growth is not good. A downside of aggressive rate activity is the negative political fallout. Think California’s Prop 103.
I thought Allstate moving all of their claim handling overseas was the magic ticket for insurance companies. I’m shocked 😮.
Who’s tight lipped? Because very few people would actually be in the know and most of us have no contact with them.
We usually see some numbers but not immediately. Exec has been pretty clear for a while that there are a number of issues causing rate inadequacy. They’ve been pretty clear that we should be expecting rate increases. But there’s not a great deal most of us can do except show up and do our jobs.