Life. State Farm’s Life affiliates added $34 billion of total life insurance in force during the year, bringing the total life insurance in force to $685 billion at year-end 2007. Total policies in force were 7.7 million as of year-end 2007, an increase of 84,000 policies from 2006. The policy gain ratio was 1.11 percent and below both the prior year result of 1.38 percent and the goal of 1.83 percent. A decrease in production was the primary reason for the lower gain ratio.

Net income for the Life affiliates was $410 million in 2007, compared with $408 million in 2006. Total premium income increased to $4.0 billion in 2007 from $3.9 billion in 2006. In 2007, the Life affiliates marked another milestone with over one billion dollars paid in death benefits; keeping our promise to customers. The 2007 results also reflect dividends to policyholders totaling over $600 million. The combined net worth of the Life affiliates was $5.7 billion as of year-end 2007.