Storms Damage American Family Results

Storms Damage American Family Results

By Susanne Sclafane

NU Online News Service, Mar. 6, 2:13 p.m. EST?More than $800 million in catastrophic storm losses dampened 2001 net income for American Family Mutual Insurance Group, the Madison, Wisc.-based insurer announced yesterday.

Releasing its results at its annual policyholder's meeting and in a press statement, the group said 2001 net income was $100.4 million, down from $236.7 million in 2000.

The catastrophic storm loss total, $834.9 million, was the largest in the group's history, topping a prior high of $583.3 million for 1998. The total also exceeded the group's budgeted forecast by more that a half billion dollars, Harvey Pierce, chairman and chief executive officer, said in a statement.

While the storm losses and a volatile stock market contributed to a $171.5 million drop in equity, the group reported that total equity is still over $3 billion, at roughly $3.3 billion.

The group also announced plans for aggressive growth, saying that on July 1 it will expand its operations in 15 states to include two more?Idaho and Utah.

American Family writes auto, home, business, life and health insurance, and is involved in other financial services business (providing consumer loans, annuities and IRAs).