re: State Farm downgraded to a B rating

Y'all probably know something I don't.

What I do know is that the parent company for State Farm is "State Farm Automobile Insurance Company".

Large conglomerates like this break their companies up into smaller bits.
For a few mutual companies, their stock tickers are only a portion of their book of business that they made public (the majority of the company is not publicly traded).

I'm definitely no expert on State Farm. But the company listed in the article is not the parent company.

quote:

---

No, it’s for their entire company and this is an enormous deal.

---

I read that it was only State Farm’s commercial liability group, not the personal lines group. State Farm’s commercial side underwrites some terrible risks, IMO.

Edit:

It was State Farm General Insurance Company that was downgraded.

State Farm General does write homeowners policies but they also write some commercial policies for State Farm as well.

LINK-Business Insurance Article

quote:

---

“A contributing factor to this decline was sharp increases in claim severity affecting the company’s umbrella and commercial multi-peril lines of business,” Best said.

---