AmFam P&C combined ratio improves 14.2 points to 96.6% in 2024

By Chris Munro

March 7 - (The Insurer) - American Family Insurance said on Wednesday that its P&C combined ratio improved by 14.2 percentage points to 96.6% in 2024, while company-wide revenue increased by $2.9 billion year on year to $20.0 billion.

The Madison, Wisconsin-based mutual, which is led by chair and CEO Bill Westrate, reported a 3.9 point improvement in its expense ratio to 33.1%.

AmFam swung to a P&C net underwriting gain of $603 million in 2024, compared with an underwriting loss of $1.7 billion in the prior year.

The improved 2024 result came even though AmFam suffered $3.3 billion of catastrophe claims. In 2023, AmFam had reported $3.5 billion of catastrophe claims.

“Multiple severe weather events continued in 2024, and American Family helped its customers recover from damaging tornadoes, hurricanes, hail and thunderstorms with straight-line winds across numerous states,” the company said.

AmFam paid out an additional $8.2 billion in non-catastrophe claims in 2024.

The $2.9 billion year-on-year growth in revenue across AmFam’s operations was driven by rate actions and an increase in investment income, the company said.

AmFarm’s direct premiums written increased 13.9% year on year to $19.6 billion in 2024.

Policy retention and new business declined by 2.8% from 2023, with AmFam ending 2024 with 13.6 million policies in force.

As the company explained, that reduction came as it continued to focus on its core business segments, while it also executed profitability improvement plans in response to natural catastrophes, inflationary pressures and other external forces.

In its life insurance business, policies in force grew by 0.6%. American Family Life Insurance Company reported a gain from operations of $129 million for 2024, down from the prior year’s $150 million.

Company-wide, AmFam’s members’ equity grew by $2.6 billion year on year to $10.6 billion. AmFam said the increase was due to improved underwriting results, investment income and the sale of non-standard auto-focused The General to Sentry Insurance.

AmFam’s group assets increased to $42.2 billion in 2024, up from 2023’s $38.0 billion.

“Sharpening our focus on customer value and accelerating strategic actions helped strengthen our financial position in 2024 and established a solid foundation and momentum to build upon,” said Westrate.

“Our customers are at the center of all we do, and financial strength ensures we’re able to deliver on our promises to serve and support customers whenever they need us most,” he added.