Madison-based American Family Insurance Group recorded a $298.9 million loss from operations in 2008, after a $110. 4 million loss in 2007 and a $202.1 million loss in 2006. The three straight years of losses followed a record $889.1 million gain from operations in 2005. Gain or loss from operations is the group's total revenues minus total losses and expenses.
After adding realized capital gains and tax expenses (or benefits) to the operating loss, the company's net loss was $297.9 million for 2008, a reversal from the $82.4 million net gain in 2007.
The company attributed the 2008 losses to a faltering global economy and a near company record for storm losses.
"We made it through a rough stretch of road in 2008, but American Family remains on solid ground," said David Anderson, chairman and chief executive officer of the firm. "We have a strong financial position and a mission of providing industry-leading value to our customers."
The company's storm and catastrophe losses topped the $1 billion mark for the second time in three years. American Family's top four years for storm and catastrophe losses all have occurred this decade, with three of the top four taking place in the past three years.
The year started with rare January tornadoes in the Midwest. The catastrophe and storm activity peaked in May and June, with losses of a total of $691.5 million for those two months alone.
"It was another busy year to help our customers recover from the unexpected," said Jack Salzwedel, president and chief operating officer. "Our agents and employees work hard to provide excellent service and value, and not just at the time of a claim. Our customer satisfaction scores increased throughout the year and finished at levels higher than planned."
Losses mounting for American Family Insurance
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