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After two years of combined ratios over 110, American Family Å˽ðÁ«´«Ã½Ó³»­ reported an underwriting profit in 2024—with a 96.6 for the year for all property/casualty lines it writes.

The improvement from a 110.8 in 2023 and 111.4 in 2022 came in spite of a high level of catastrophe losses last year—$3.3 billion was paid in catastrophe claims in 2024 after a record-high of $3.5 billion in 2023.

In dollars, the P/C net underwriting profit figure was $603 million, compared to underwriting losses of $1.7 billion and $1.5 billion in 2023 and 2022. Net income after taxes landed at $2.5 billion for 2024, compared to a net loss of almost $900 million in 2023.

“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 Bill Westrate, American Family Å˽ðÁ«´«Ã½Ó³»­ chair and CEO, in a media statement.

Rate increases and investment income pushed total revenue up 17% to $20 billion. Direct written premiums rose 13.9% to $19.6 billion, however profit-focused strategies impacted policy retention and new business. Both declined in 2024 and the insurer ended the year with 13.6 million policies in force, down 2.8% from 2023.

The company continued to focus on business segments most core to its strategy and executed profitability improvement plans in response to natural catastrophes, inflationary pressures and other external forces, the company said in a statement.

“We’ve taken necessary steps to improve performance, putting us in a strong financial position as we head into 2025 and beyond,” said Troy Van Beek, American Family Å˽ðÁ«´«Ã½Ó³»­ chief financial officer and treasurer.

Members’ equity increased to $10.6 billion at the end of 2024, up from $8.0 billion in 2023. The $1.7 billion sale of The General to Sentry Å˽ðÁ«´«Ã½Ó³»­ last year helped boost the figure, along with underwriting and investment income.

Pretax investment income rose 70% to $1.6 billion last year, and realized investment gains were $1.3 billion, compared to $104.4 million in realized losses for 2023.

The media statement about 2024 financial results also highlighted some actions by the company last year aimed at keeping and attracting talent—a raise in its minimum wage to $25 per hour and several benefit package enhancements, including expanded parental and caregiver leave policies.

Topics Profit Loss Underwriting