Fitch Publishes Unrated Issuer Report on State Farm Mutual Automobile Insurance Co.
In addition to highlighting what Fitch considers to be State Farm's main credit issues and trends, the report takes a closer look at:
--Market Position;
--Capital.
State Farm continues to maintain a leading market position in the U.S. personal lines market by a significant margin. The company's career agency distribution system provides considerable advantages, but changes in technology, shifting consumer buying preferences and advances by direct insurance distributors present future threats to State Farm's longer term market share.
State Farm's capital position is another key organizational source of strength. Policyholders' surplus reached a new all-time high of approximately \$81.1 billion at Sept. 30, 2014. The company remains exposed to capital volatility, primarily from natural catastrophe losses and equity investment market downturns.
The UIR includes a peer analysis comparing State Farm with other large personal lines underwriters on several important financial metrics.
UIRs are not solicited by the issuer, and Fitch receives no compensation from the issuer for the provision of an UIR. While a UIR is typically based primarily on public information, Fitch analysts may ask questions of an issuer's management while preparing an UIR. The level of management participation, if any, can vary significantly from case to case.
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