State Farm is once again selling homeowners insurance in Kansas and Missouri, less than four months after it stopped selling new policies because its business had grown too fast. However, the insurer has not yet disclosed when it might ramp up business in the 25 other states where it scaled back activities in June 2002.

The company began selling homeowners insurance again in Kansas and Missouri on Oct. 4, 2002. It declined to disclose plans for the other 25 states, citing competitive reasons. See State Farm's lowball tactics come back to bite them.

"We have reached a point where we feel we can take on additional growth. The growth has slowed down to a level of business in which we will be able to operate," says State Farm spokesperson Vanda Easley. "The frequency, number, and severity of claims have recovered in both states."

The company suffered a $5.3 billion loss nationally in 2001 on $41 billion in business after a $3.3 billion loss in 2000.

State Farm says that while its business has grown in many states, in some states the growth can be too fast for the company to keep up. In addition, the company says new business often costs more money than older business.