Is State Farm a Tough Insurance Company to Settle Claims With?
State Farm is the largest auto accident insurance company. State Farm generates mammoth profits each and every year. Baltimore personal injury and car accident lawyers Attorney Eric T. Kirk are well aware of many of the methods employed by State Farm to defend against, deny, delay or defeat claims.
Insurance industry analysts will tell you that an insurance company’s viability is not dependent on collecting more money in premiums than it pays out in claims, but rather earning more in investment income that it pays out in claims. Although not the only factor in determining an insurance company’s “bottom line”, don’t let that analysis lead you to believe that the insurance industry is not driven by paying out less in claims than it takes in premiums. Insurance companies can be, and are, massively profitable. State Farm is a great example of a company that has underwriting losses, and enourmous profits. A few years ago, Bloomberg.com reported that State Farm had claimed a loss of almost a billion dollars in its automobile accident division
…yet the company still posted a profit of 1.8 billion dollars in for that year
According to Bloomberg, State Farm posted a profit of 800 million again in 2011. State Farm itself1 gives us a some current figures. In February 2016, The State Farm “property-casualty (P-C) companies reported an underwriting loss of $2.1 billion in 2015”. However, “the 2015 underwriting loss, combined with investment and other income of $4.0 billion (down $0.3 billion from 2014)” resulted in an
…operating profit of $1.9 billion.
State Farm has enormous assets. “The combined net worth for the State Farm group ended the year at $82.7 billion compared with $80.0 billion at year-end 2014”.2 This is a huge, massively profitable organization. If they insure the at-fault diver in your personal injury claim, they are not your good neighbor.
They are your adversary, and they are a ferocious opponent.
I’ve handled hundreds of cases with State Farm. The attorneys employed by State Farm to take their claims to trial are some of the best personal injury defense lawyers in Maryland, and are formidable adversaries in the courtroom. If you have had a claim that his been denied, delayed, or you have been extended a “low-ball” offer, I’d be happy to meet with you personally to discuss your claim. Contact me. 410 591 2835.
FN1 https://www.statefarm.com/about-us/newsroom/2016/02/26/2015-financial-results
FN2. Id.
- Baltimore Personal Injury Trial Lawyer Eric T. Kirk
- Baltimore Car Accident Legal Analysis & Case Studies
- Baltimore Neighborhoods I Serve
A Baltimore car accident and personal injury litigator who has taken hundreds of cases to trial in Maryland, New York and Florida, recovering millions over a 30-year mission to obtain denied compensation for his clients.
