Storm Losses Cause $280 Million Loss for American Family in
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March 4, 2009 Wednesday 04:33 PM EST
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Storm Losses Cause $280 Million Loss for American Family in 2008
Chad Hemenway
MADISON, Wis.
After recording catastrophe and storm losses of more than $1 billion for the second time in three years, American Family Insurance Group posted a $297.9 million net loss in 2008, compared with an $82.4 million gain during the prior year, the company said.
Catastrophe and storm losses during 2008 totaled $1.06 billion, American Family said. Four of the top years for storm and cat losses have occurred within the past 10 years.
American Family Mutual Insurance Co. has been providing insurance services and products in the Midwest for more than 75 years. Here beginning in January, policyholders were hit by tornadoes followed by other storm activity in May and June, when losses totaled $691.5 million during those two months alone.
Insured losses for the industry were expected to reach $850 million from late-May storms that hit seven Midwest states, according to the Insurance Services Office (BestWire, June 10, 2008). ISO's Property Claims Services estimated 10,000 claims were filed in Iowa alone, where a tornado did significant damage to the city of Parkersburg.
For the third straight year, the insurer recorded a loss from operations. Losses were nearly $300 million in 2008, compared with a $110.4 million loss in 2007 and a $202.1 million loss in 2006. The company experienced an $889.1 million gain from operations in 2005, American Family said.
Investments "could have been better," said Chief Executive Officer David R. Anderson and Chief Operation Officer Jack C. Salzwedel in the company's annual report. Equity declined $871.3 million in 2008.
"American Family follows an investment philosophy of choosing high-quality stock and bonds and holding them for the long run," said Anderson in a statement. "Our portfolio took a bit of a tumble, like everyone else's did, but it could have been much worse."
American Family Insurance Group currently has a Best's Financial Strength Rating of A (Excellent).
(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)
March 5, 2009
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March 4, 2009 Wednesday 04:33 PM EST
331 words
Storm Losses Cause $280 Million Loss for American Family in 2008
Chad Hemenway
MADISON, Wis.
After recording catastrophe and storm losses of more than $1 billion for the second time in three years, American Family Insurance Group posted a $297.9 million net loss in 2008, compared with an $82.4 million gain during the prior year, the company said.
Catastrophe and storm losses during 2008 totaled $1.06 billion, American Family said. Four of the top years for storm and cat losses have occurred within the past 10 years.
American Family Mutual Insurance Co. has been providing insurance services and products in the Midwest for more than 75 years. Here beginning in January, policyholders were hit by tornadoes followed by other storm activity in May and June, when losses totaled $691.5 million during those two months alone.
Insured losses for the industry were expected to reach $850 million from late-May storms that hit seven Midwest states, according to the Insurance Services Office (BestWire, June 10, 2008). ISO's Property Claims Services estimated 10,000 claims were filed in Iowa alone, where a tornado did significant damage to the city of Parkersburg.
For the third straight year, the insurer recorded a loss from operations. Losses were nearly $300 million in 2008, compared with a $110.4 million loss in 2007 and a $202.1 million loss in 2006. The company experienced an $889.1 million gain from operations in 2005, American Family said.
Investments "could have been better," said Chief Executive Officer David R. Anderson and Chief Operation Officer Jack C. Salzwedel in the company's annual report. Equity declined $871.3 million in 2008.
"American Family follows an investment philosophy of choosing high-quality stock and bonds and holding them for the long run," said Anderson in a statement. "Our portfolio took a bit of a tumble, like everyone else's did, but it could have been much worse."
American Family Insurance Group currently has a Best's Financial Strength Rating of A (Excellent).
(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)
March 5, 2009
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