American Family Insurance equity increases 5.8 percent

Special to The Freeman

March 3, 2015

MADISON — On Tuesday, American Family Insurance reported that 2014 was a strong year for the Madison-based group of companies, which increased policyholder equity to almost $7 billion, an increase of 5.8 percent compared to 2013. 

American Family’s policyholder equity of nearly $7 billion reflects an increase of $384 million in 2014, compared to a policyholder equity increase of $444 million the year before. According to the company, policyholder equity is used to protect customers from extraordinary catastrophes and other unplanned financial losses.

“In many ways, 2014 was a landmark year for our customers and us,” said Jack Salzwedel, chairman and chief executive officer, in a statement. “We not only welcomed a new company for the second consecutive year and achieved solid results across our critical measures, we also made customer-driven changes that position us well for the future.”

In 2014, American Family acquired Homesite.

American Family Insurance reported that the main contributor to the policyholder equity increase was net income of $515.2 million, which includes line operating results, investment income, realized gains and taxes. In 2013, net income was $378.8 million.

Group assets rose to $20.6 billion, an increase of more than $1 billion from 2013, while group revenue increased to $7.4 billion from $6.8 billion, according to the company. Life insurance in force rose to $91 billion from $89.6 billion.