At Issue: Bloomington, Ill.-based State Farm Mutual Automobile Insurance Co. has reported a $5 billion net loss since 2001 resulting from a series of natural disasters-from hailstorms to floods. Much of the damage has occurred in Texas where State Farm faces a significant number of homeowners claims involving the formation of mold.The Task: To insulate itself from further significant losses, State Farm announced a sweeping plan to temporarily suspend writing new homeowners policies in 17 states where business has been unprofitable.
Additionally, the carrier reveals plans to exit the non-profitable New Jersey auto insurance market entirely over the next five years.
