Article: State Farm rallies after 2 bad years

BLOOMINGTON - It seemed like old times in 2003 for State Farm Insurance Cos.

After two years of billion-dollar losses, the Bloomington-based insurance giant reported a $2.8 billion profit for 2003.

The results were attributed to 21/2 years of corporate cost cutting and higher insurance rates instituted after losses of $2.8 billion in 2002 and $5 billion in 2003. A healthier stock market in 2003 also translated into higher investment returns for State Farm, said spokesman Dick Luedke when the company's financial report was released in February.

Outside analysts also said tougher underwriting standards on the part of State Farm in setting rates and selecting policyholders played a big part ...

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