STATE FARM SWINGS TO $2.8BN PROFIT IN 2003

Illinois-based State Farm has posted 2003 net earnings of $2.8bn, rebounding from a year-earlier net loss of $2.8bn, mainly because of an improvement in core p/c operations and the insurer’s investment portfolio. P/c business posted a pre-tax operating profit of $3.1bn in 2003 against a loss of $2.7bn the year before. Last year’s results included an underwriting loss of $281m, which was more than offset by earned investment income and other income of $3.4bn. The 2002 results included a $6bn underwriting loss and a $1.2bn write-down for impairment of invested assets. The group’s net earned p/c premiums for the year totalled $45.3bn, an increase of 10.5%. State Farm’s core motor insurance business, which accounts for 67% of p/c premiums, saw its underwriting loss drop to $33m from the year-earlier $4.2bn.