State Farm's whopping $5 billion after-tax net loss in 2001 has earned the Bloomington, Ill.-based insurer a dubious distinction: it's 'AAA" credit rating has been place on Standard & Poor's Corp. CreditWatch list with "negative implications."State Farm's auto business, representing about 70% of the property/casualty business written by the group, reported an underwriting loss of $5.6 billion last year. Earned premiums totaled $25.6 billion, while incurred claims and loss expenses were $25.3 billion. A year earlier, the auto segment reported an underwriting loss of $3.7 billion before paying its policyholders $1 billion in dividends.
Meanwhile, the carriers's homeowners and commercial multiple peril lines reported an underwriting loss of $3.7 billion on earned premiums of $10 billion. The incurred claims and loss expenses totaled $10.3 billion for the lines.
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