American Family Insurance reports 2024 financial results

American Family Insurance reported strong financial results for 2024, achieved by implementing a multi-year, customer-driven strategy that resulted in improvements from 2023 in combined ratio, expense ratio, revenue and members’ equity – delivering value and strengthening financial protection for customers. 

“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 Insurance chair and CEO. “Our customers are at the center of all we do, and financial strength ensures we’re able to deliver on our promises to serve and support customers whenever they need us most.”     

Revenue increases significantly, while policies in force decrease  

Revenue increased to $20.0 billion in 2024 from $17.1 billion in 2023, driven primarily by rate actions and increases in investment income. Direct premium written increased 13.9% from the previous year, to $19.6 billion.  

Policy retention and new business declined in 2024, with 13.6 million policies in force at year-end, down 2.8% from 2023, as 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.  

Underwriting profitability improves through continued execution of strategy   

American Family Insurance reported a combined ratio of 96.6% for all property and casualty lines – auto, homeowners and commercial – improved from 110.8% in 2023. The expense ratio in 2024 was 33.1%, 3.9 points lower than 2023, underscoring the company’s commitment to delivering value for customers.  

A net underwriting gain of $603 million in property-casualty lines was reported in 2024, compared to an underwriting loss of $1.7 billion in 2023. 

Catastrophe claims remain high 

Multiple severe weather events continued in 2024, and American Family helped its customers recover from damaging tornadoes, hurricanes, hail and thunderstorms with straight-line winds across numerous states. In 2024, $3.3 billion was paid in catastrophe claims, not far from the record high of $3.5 billion in 2023. An additional $8.2 billion in non-catastrophe claims were paid in service to customers through the normal course of business, totaling $11.5 billion for all paid claims in 2024. 

2024 life insurance policy growth and gain from operations results 

Life insurance policies in force grew by 0.6%, while American Family Life Insurance Company reported a decrease in its gain from operations to $129 million in 2024, from $150 million in 2023.  

Members’ equity increases from previous year  

Members’ equity increased to $10.6 billion at the end of 2024, up from $8.0 billion in 2023, due to improved underwriting results, investment income, and the sale of The General. Group assets rose to $42.2 billion from $38.0 billion in 2023.

“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 Insurance chief financial officer and treasurer. “We remain focused on providing excellent value to customers, which includes being there for our customers in their greatest times of need, as well as investing in technology and other innovations that support industry-leading customer experience and value.” 

Investing in people and communities 

American Family Insurance is committed to supporting its customers and employees, both through insurance products that help protect and restore dreams, and meaningful investments in its people and communities. 

Recognizing the importance of keeping and attracting top talent to best serve customers, in September the company announced a raise in its minimum wage to $25 per hour and several benefit package enhancements, including expanded parental and caregiver leave policies. In recent years, the company also expanded employee assistance programs and other resources that promote physical, mental and emotional well-being. 

The American Family Insurance Dreams Foundation continued to partner with nonprofit organizations to invest in impactful community programs and initiatives. Additionally, the Foundation offered matching gifts and volunteer programming for employees. 

In 2024, the PGA TOUR Champions American Family Insurance Championship raised a record $2.5 million, bringing the total amount donated to nonprofit community organizations since the inaugural event in 2016 to $19.7 million. 

Beyond these corporate investments, employees and agency owners made a significant impact by partnering with the Dreams Foundation to contribute $10.3 million in charitable donations and dedicating more than 114,000 hours to volunteer service.  

"American Family serves as an important source of stability for our customers, and for our employees, agency owners and their staff, who together inspire, protect and restore our customers’ dreams,” said Westrate. “It is our responsibility and honor to stand by our customers’ sides in their time of need, and to support our communities. We’re able to do these things, in part, due to our strong financial position.”  

For more, see the 2024 annual report on amfam.com. 

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About the American Family Insurance Group
American Family Insurance Group, a mutual holding company based in Madison, Wis., has been serving customers since 1927. We inspire, protect and restore dreams through our insurance products, exceptional service from our agency owners and employees, community investments and creative partnerships. American Family Insurance Group is the nation’s 12th-largest property/casualty insurance group, ranking No. 243 on the Fortune 500 list. The Group has a current ‘a+’ credit rating through AM Best and has distinction as a “Standing the Test of Time” company, which is represented by having an AM Best financial strength rating of ‘A’ or better for 75 years. The group sells American Family-brand products, primarily through exclusive agency owners in 19 states. The American Family Insurance Group also includes CONNECT, powered by American Family Insurance, Homesite and Main Street America Insurance, and has approximately 11,000 employees nationwide.