News 593 State Farm Home Insurance Reports Record Losses

State Farm Insurance reported a 39% drop in profits after they paid out claims from 2005's busy hurricane season. The home insurance company's net income for 2005 was $3.24 billion, down from $5.31 billion the previous year. While that may still sound like a huge chunk of change, keep this in mind. State Farm paid out $6.3 billion in hurricane damages, leaving many agents with a large profit loss. The insurer will make up some of their losses in increased homeowners insurance rates in disaster prone areas.

Read more: Storms Hit State Farm's 2005 Profit (Los Angeles Times) State Farm Mutual Automobile Insurance Co., the largest U.S. home and auto insurer, said Friday that its profit fell 39% in 2005 after it paid record hurricane claims.