Wind and hail claims racked up losses for State Farm of more than $3.9 billion in 2012, with Texas tallying the most claims of any state with about 47,000, the company said.
Six of the top 10 states with the largest number of wind and hail claims in 2012 are in the Midwest, with two states in the Northeast, along with Colorado and Texas. Wind and hail claims are among the most frequent and severe causes of property damage, State Farm said.
After Texas, states with the most State Farm wind and hail claims last year were: Illinois, with 41,000; New York, with 34,000; Ohio, with 31,000; Missouri, with 25,000; Tennessee, with 24,000; Indiana, with 23,000; New Jersey, with 23,000; Kentucky, with 22,000; and Colorado, with 16,000.
State Farm wind and hail claims figures echo in the larger homeowners market. As of April 10, states with the highest average homeowners adjusted loss ratio in 2012 were Kentucky, with 130.01; New Jersey, with 127.41; and Colorado, with 119.22, according to BestLink, A.M. Best Co.'s online financial system.
The average cost to State Farm for each wind and hail claim in Texas in 2012 was $9,855, the company said. Tennessee had the highest average cost - $10,086 - per wind and hail claim and New Jersey had the lowest, averaging $5,524 per claim. The company did not break down claims numbers and costs by insurance line.
Texas was battered by at least three significant wind and hail storms last year. One struck the Dallas area June 13 with baseball-size hail just as local highways were packed with rush hour commuter traffic (Best's News Service, June 18, 2012). A hailstorm struck McAllen, Texas, in March, an area that is known for high-end homes. In April, severe weather raked the Dallas-Forth Worth area of Texas, bringing tornadoes and hail.
State Farm Lloyds, the company's dedicated Texas subsidiary, wrote homeowners net premiums of $1.4 billion in 2012, according to BestLink, and total net premiums of $1.5 billion. The company has a five-year average combined ratio of 105.5. Its 2012 homeowners loss ratio was 46.5, with a five-year average of 62.4. The company in 2012 was the largest writer of homeowners insurance in Texas, with 26.86% of the market.
State Farm Lloyds currently has a Best's Financial Strength Rating of B++ (Good), while State Farm Group companies are currently rated A++ (Superior).
The top five writers of homeowners insurance in 2011 in the United States were: State Farm Group, with market share of 21.03%; Allstate Insurance Group, with 9.47%; Farmers Insurance Group, with 6.3%; Liberty Mutual Insurance Cos., with 5.55%; and USAA Group, with 4.7%, according to BestLink.