Just read where AM Best has downgraded SF credit outlook from stable to negative, citing significant underwriting losses, natural catastrophes, and the inability to secure some rate increases from insurance regulators.
34 replies (most recent on top)
The writing is on the wall folks. Just have to stop focusing on maintaining your own role in either its past or present form.
- SF didn't get downgraded.....its overall financial outlook did, because the P&C insurance industry is undergoing massive changes (environmental and societal).
- Because of #1, neither SF or any other company can possibly go back to a turn of the millenium operation ever again. It will never again have real people picking up the phone all day in order to help each other to help the customer.
- Claims are going to be very difficult to rein in. Adequate premiums are going to be extremely difficult to get approved, much less collect. So the biggest part of the solution is going to have to be expense control.
- SF is going all in on trying to make the agent of the future (like by the end of this year) a financial services provider FIRST, and a P&C seller second. The new model is the multi office agent--who CLEARLY cannot be personally meeting every customer in three different offices every day. There's no way the new or future agent is going to be able to get rich selling just car and home insurance.
- Agents will have to focus on volume and expense control as well.....though SF is not going to coach them on this. SF will be very happy to allow agents to continue trying to provide that SF itself will not. It will be impossible for agents to a) grow and b) properly service that growth on P&C commissions. Growth happens when premiums (& commissions) drop. But growth creates expense in the need to hire more staff to service it.
I have no doubt that SF will figure out how to survive. But it will come at the expense of agents and employees. Some agents will figure out how to thrive in it. Many of us will opt for retirement in the very near future.
@bvde-is apparently illiterate or high when they post. Either way it is just nonsense.
How do we shut down this stupid thread? OP and their constant re-hashing are just ridiculous at this point.
Are they going to fire the person responsible for a $13 BILLION loss and a credit DOWNGRADE? or are they going to let the greedy tipstard gorge himself on millions of policyholder dollars while you get scraps
Childish
Did SF credit get DOWNGRADED???
If true who's going to get fired over it??? Buh-bye CEO...ur fired incompetence
Childish.
Downgraded
@9qwa-not good to get drunk before posting.
Downgraded...so commenting corporate stooges r stating no big deal. So let's downgrade the CeOs pay no big deal...oh now it's a big deal...mi drop...I'm crip walking now.
When the organization writing the downgrade specifically states that the entire industry faces the same issues……maybe OP should just acknowledge that instead of arguing with it.
The industry outlook is totally independent and separate from SF. Since SF is the dominant carrier in both auto and HO they correlate more closely with industry outlook than a small,regional carrier. They don’t have to be the same but most of the time they are the same.
industry outlook is downgraded. This kind of post doesnt work here. OP is the only one responding that isnt saying this....
Who's responsible when a 100 year company loses BILLIONS of dollars and is fina coal stability DOWNGRADED? Is it the Janitor..no, not her. A claim rep..no, not her either. Oh yeah, it's the CEOs fault..it's his failure. Man up...nah you hide, you cower, you a Tipstard
The P&C insurance landscape is more difficult than any time in history. Over 12 companies including 6 alone in Florida, have gone out of business since January of 2022. Rising weather losses, increased fraud, and unavailability or un affordability of reinsurance are the drivers. Insurance tech companies like Lemonade are hanging on by a thread.
Storms not including hurricanes have passed the 50 Billion threshold in the U.S. through September setting an all time record. Insured losses from those storms comprise 74% of the world total this year.
Also, a previous post suggested Sf has been downgraded-they have not. Their out look in relation to climate change, regulatory environment and ability to obtain needed rates has turned from neutral to negative. Moodys issued the same for the U.S.private passenger auto industry and the U.S. Homeowner industry.
The corporate plant speaks again. His duty is provide vulgar, obscene ludicrous comments to degrade this site and render it meaningless
Of course. The entire insurance industry is facing the same financial pressures and regulatory issues. And it’s all Tipsord’s doing.
And the corporate plant to degrade the site responds…..
DOWNGRADED
DOWNGRADED
DOWNGRADED
Who's fault is that??? Let's see...uh, the janitor? No no not the janitor...the secretaries? No no not the secretaries ..Hmmm, oh yeah...yeah yeah...its the CEZeroes fault!!! Never happened before.
@4dwe is a corporate plant whose purpose is to degrade this site so no one takes it seriously.
When tipstard leaves I'm gonna miss the greed, no no the adultery, no no no the sloth. Yeah yeah the greed. Dude has no shame. No class.
How does he spin this into a 50M dollar bonus?
MT collects 20 plus million a year. He’s going to be fine regardless of what happens
How many tens of billions of dollars will be lost from 2020-2025. It is reasonable to think we will approach 50 billion dollars of loss on our main business. (Yeah I get we have an investment portfolio generating returns). That is INSANE.
The walls are closing in on Tipstard. He can no longer hide his ineptitude. Will the company survive? Is the board planning his replacement without his knowledge or condent. He could be replaced at any moment...eminent
same disgruntled ex-employee/agent who spams these boards with stuff like this, and posts inflammatory responses. It gets old. Stop messing with this place for the actual employees who just want realistic discussions and share info, you are doing corporate the favor ruining this place.
Whats next, OP?
Layoffs?
They did lower the credit outlook. However, they upheld the top tier financial strength rating, and specifically noted that the entire industry is facing the same issues State Farm faces. So as usual on this site, it’s much ado about nothing by an OP with an axe to grind but no analytical thinking skills.
SF has not been down graded-AM Best would state that versus their outlook comment. .@qok is the person responsible for most of the lies, myths and vulgar comments on this site.
Ha Ha Ha Losers ! Is SF collapsing? That's OK the corporate stooges keep alleging SF is financially strong yet in reality its been downgraded. I wonder how much CEZero will pay himself (and the board) this year? Greedy
Actually the OP inserted a word that does not apply -credit. AM Best downgraded the outlook. They also downgraded the entire personal auto insurance industry and the entire homeowner insurance industry citing, catastrophe losses, regulatory environment and pricing challenges.
Sounds about right. Competitors facing all the same things so it should be very common.
Just how much credit does State Farm need to apply for, anyway?