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State Farm downgraded to a B rating
Posted on 3/29/24 at 9:01 am
Posted on 3/29/24 at 9:01 am
8
Posted on 3/29/24 at 9:03 am to mule74
I think that is just their California book of business.
Every major company has dozens and dozens of subsidiary companies operating within state lines
Every major company has dozens and dozens of subsidiary companies operating within state lines
Posted on 3/29/24 at 9:22 am to meansonny
No, it’s for their entire company and this is an enormous deal. Anything below an A+ rating for an insurer and you really shouldn’t be doing business with that carrier. And I have State Farm!!
Posted on 3/29/24 at 9:25 am to mule74
State Farm came in hot on me last year trying to raise my wife and I's annual vehicle premiums (on 3 vehicles) from about $4600 to $6600. I told them to kick rocks they are insane wanting that and we ended up with AllState which we got slightly better vehicle coverage and the annual premium is $2600, also switched homeowners which was basically even between the 2.
Was with State Farm for literally 20 years just about.
Was with State Farm for literally 20 years just about.
Posted on 3/29/24 at 9:28 am to meansonny
quote:
think that is just their California book of business.
No. AMBest doesn’t break out ratings by state. This change is a result largely of their California business, but the rating reflects the overall health of the entire company.
Posted on 3/29/24 at 9:36 am to mule74
I can throw a rock at 2 houses next to me getting their roofs replaced by USAA from the recent hailstorm. State Farm came out Wednesday and isn’t replacing mine despite having clear damage. I’m dropping them ASAP
Posted on 3/29/24 at 9:39 am to Bucktail1
quote:
Anything below an A+ rating for an insurer and you really shouldn’t be doing business with that carrier.
Most mortgages will not accept coverage from carriers that do not have a A rating. This is going to put tremendous strain on the insurance market as millions of policies are going to have to be replaced.
Posted on 3/29/24 at 10:36 am to Bucktail1
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.
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.
Posted on 3/29/24 at 10:44 am to mule74
quote:
No. AMBest doesn’t break out ratings by state.
It isn't by State.
It is by company. And State Farm Automobile Insurance Company owns about 25 individual companies underneath the mutual holding companies.
A quick wiki search pulls up State Garm General Insurance Company as just the California home insurance underwriter (this doesn't even include auto insurance, banking, or life insurance in california).
AmBest breaks out rankings for companies and state farm owns a shitload of them
Posted on 3/29/24 at 11:05 am to meansonny
quote:
It isn't by State.
I know that …
I am trying to make the point that this downgrade is for the entirety of State Farm.
Posted on 3/29/24 at 11:20 am to mule74
I’m calling and threatening to leave them if I don’t get a discount. The main reason I have State Farm is their reliability. If their credit is getting struck down, they’re going to be far less reliable
Posted on 3/29/24 at 11:38 am to mule74
Per the article, it literally isnt.
Posted on 3/29/24 at 12:15 pm to mule74
They have been sued and fined 2 times by government for screwing customers over, so there is also that.
Posted on 3/29/24 at 12:18 pm to meansonny
quote:
It is by company. And State Farm Automobile Insurance Company owns about 25 individual companies underneath the mutual holding companies.
A quick wiki search pulls up State Garm General Insurance Company as just the California home insurance underwriter (this doesn't even include auto insurance, banking, or life insurance in california).
AmBest breaks out rankings for companies and state farm owns a shitload of them
AM Best ratings are typically for the parent company and apply to all subsidiaries. In most instances, the subsidiaries don't operate as separate companies, they just exist for policy issuance.
That said, there are exceptions to this and I'm not sure what's going on with state farm.
I thought I read that state farm was A++ rated, so a downgrade to a B is absolutely insane. I'm in the industry and you'd typically see an A++ downgraded to just an A+. Or, an A- to B++
Posted on 3/29/24 at 12:42 pm to Bucktail1
This only impacts State Farm's California Fire policies...
State Farm Mutual (Countrywide Auto company & Parent company) is A++.
State Farm Fire & Casualty (Home insurance company for most states) is A++.
This downgrade is only for single state affiliate... State Farm General (CALIFORNIA)!
State Farm Mutual (Countrywide Auto company & Parent company) is A++.
State Farm Fire & Casualty (Home insurance company for most states) is A++.
This downgrade is only for single state affiliate... State Farm General (CALIFORNIA)!
Posted on 3/29/24 at 12:47 pm to 632627
quote:
AM Best ratings are typically for the parent company and apply to all subsidiaries
AmBest can rate whatever company they want. And if State Farm General is applying for loans or investors, they want those ratings. They need those ratings.
The interesting thing to me is that California's home insurance market is about 1 of 25 different companies underneath the state farm umbrella.
That is insane how much premium and how many assets are dedicated to just the home insurance market for one out of 50 states for who may be the largest property and casualty insurance company in the country (i.e. not regional).
Posted on 3/29/24 at 1:43 pm to LSUgolf04
quote:
This downgrade is only for single state affiliate... State Farm General (CALIFORNIA)!
So if their California company goes insolvent, the parent company doesn't step in? If not, then the separate ratings make sense.
Posted on 3/29/24 at 2:07 pm to 632627
quote:
So if their California company goes insolvent, the parent company doesn't step in? If not, then the separate ratings make sense.
Insurance is state regulated.
Regardless of parent company.
The purpose of the department of insurance is to keep companies solvent while also protecting consumers. State Farm can't charge a rate in CA without the DOI approval.
It is why State Farm has suspended writing new policies in CA and has a decent portion of their risk non-renewing. To maintain solvency.
I don't have an honest answer to your question. But I do know that all of the levers and filings in CA are for CA book of business only. The presumption is that State Farm General is the only company available to handle losses.
Posted on 3/29/24 at 3:34 pm to mule74
You should edit this post.
It’s just the Cali homeowners business being downgraded, not the mutual company.
It’s just the Cali homeowners business being downgraded, not the mutual company.
Posted on 3/29/24 at 4:17 pm to 632627
The parent company does not have to step in. It’s helped affiliates in the past though. But you don’t want to throw good money after bad unless California eases up on the regulatory side.
California is a single state affiliate for a reason. It’s a very difficult to operate a business in that state due to the extreme regulatory overreach.
The rest of the country should not have to subsidize California due to their anti-business politics.
California is a single state affiliate for a reason. It’s a very difficult to operate a business in that state due to the extreme regulatory overreach.
The rest of the country should not have to subsidize California due to their anti-business politics.
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