State Farm reported a $10.4 billion decline in net worthprimarily as a result of market conditions. At the end of 2008, theBloomington, Ill.-based company's net worth stood at $53.3 billion.State Farm stated that losses related to its P&C companies'stock portfolio accounted for most of the decline.
The company sustained an after-tax net loss of $542 million in2008, compared with $5.46 billion net income in 2007. It cites"extraordinary levels" of catastrophe damages as the reason behindthe loss. The operating loss for State Farm follows fiveconsecutive years of net income. The average annual amount of netincome for State Farm through the first nine years of this decadeis $1.6 billion.
Michael Tipsord, vice chairman, treasurer, and chief financialofficer at State Farm, cautioned against attributing "too muchsignificance to short-term operating results without firstconsidering the level of financial strength."
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