State Farm Insurance

Infobox Company
name = State Farm

type = Mutual (main company)
genre =
foundation = 1922-06-07cite web
url = http://www.statefarm.com/about/companie.asp
title = "State Farm Companies"
publisher = State Farm Mutual Automobile Insurance Company
accessdate = 2008-05-28 ]
founder = George J. Mecherle
location_city = Bloomington, Illinois
location_country = USA
location =
locations = 17,000 agents 391 claim offices 24 operations centerscite web
url = http://www.statefarm.com/about/media/fastfact.asp
title = "Fast facts about State Farm"
publisher = State Farm Mutual Automobile Insurance Company
accessdate = 2008-05-28 ]
area_served = USA and Canada
key_people = Edward B. Rust, Jr. (Chairman/CEO)
industry = Finance and Insurance
products =
services = Insurance, Banking, Investing
revenue = US$61,611 million (2007) increase1.8%cite web
url = http://money.cnn.com/magazines/fortune/fortune500/2008/snapshots/10199.html
title = State Farm Insurance Cos.
work = Fortune 500, 2008
date = 2008-05-05
accessdate = 2008-04-24 (Note: Based on 2006 accounting figures.)]
operating_income =
net_income = US$3,664 million (2007) increaseUS$687 millioncite web
url = http://www.statefarm.com/_pdf/2007annualreport.pdf
type = PDF
title = 2007 Annual Report to State Farm Mutual Policyholders
publisher = State Farm Mutual Automobile Insurance Company
date = 2008-03-04
accessdate = 2008-03-27 ]
assets = US$104,842 million (2007) increaseUS$6,494 million
equity = US$58,142 million (2006)cite web
url = http://money.cnn.com/magazines/fortune/global500/2007/snapshots/10199.html
title = State Farm Insurance Cos.
work = Fortune Global 500, 2007
date = 2007-07-23
accessdate = 2007-03-27 (Note: Based on 2006 accounting figures.)]
owner =
num_employees = 68,000
parent =
divisions = Insurance; mutual funds; State Farm Bank
subsid = "see Companies below"
slogan = Like a good neighbor, State Farm is there.
homepage = [http://www.statefarm.com/ www.statefarm.com]
footnotes =
intl =

State Farm Insurance is a group of insurance and financial services companies. State Farm has remained the largest automobile insurer in the United States continuously since 1942 and insures more cars and homes in the United States than any other insurer.

The group's main company is State Farm Mutual Automobile Insurance Company, a mutual insurance firm that also owns the other State Farm companies. The corporate headquarters are in Bloomington, Illinois.

State Farm is ranked 32nd in the 2008 Fortune 500, which lists American companies by revenue. According to the Fortune Global 500, State Farm is also the world's largest mutual "P&C" (property & casualty insurance) firm; the only other P&C mutual in the Global 500 is Groupama in Europe.

History

State Farm was founded in 1922 as a mutual automobile insurance company owned by its policyholders. Despite the company's name, State Farm did not initially begin as a crop insurance company. Specifically, State Farm specialized in auto insurance for farmers. Founder George J. Mecherle believed that since farmers drove less and had fewer losses than city drivers, they should pay less for insurance. His idea was popular with farmers and made his new company successful. Since its inception, State Farm has expanded its services into other popular types of insurance, such as homeowners and life insurance, in addition to banking and financial services.

State Farm's well-known jingle ("Like a good neighbor, State Farm is there") was written by American songwriter Barry Manilow in 1971. [ [http://www.statefarm.com/about/sf_1960.asp State Farm® – 1960s & 1970s ] ]

State Farm has grown to include 67,000 employees and 17,000 agents servicing 77 million policies in the United States and Canada, and serving more than 1.9 million bank accounts. As of the year 2005, State Farm is insuring about 40 million vehicles. [http://www.statefarm.com/_pdf/2005_yearinreview.pdf]

Edward B. Rust, Jr. is chairman of the board and chief executive officer of State Farm Mutual Automobile Insurance Company, and president and chief executive officer of State Farm Fire and Casualty Company, State Farm Life Insurance Company, and other principal State Farm affiliates.

On March 1, 2007, State Farm Mutual Automobile Insurance Company announced it will pay $1.25 billion in dividends to its mutual auto insurance policyholders in 46 states, the District of Columbia and the Canadian province of New Brunswick. [ [http://www.statefarm.com/about/media/media_releases/auto_dividends.asp State Farm® Announces $1.25 Billion Mutual Auto Policyholder Dividend ] ]

Companies

State Farm Mutual Automobile Insurance Company also owns the other State Farm Companies:
* State Farm Fire and Casualty Company
* State Farm Life Insurance Company
* State Farm Life and Accident Assurance Company (NY/CT/WI)
* State Farm County Mutual Insurance Company of Texas (TX auto)
* State Farm Indemnity Company / State Farm Guaranty Insurance Company (NJ auto)
* State Farm General Insurance Company (CA home)
* State Farm Florida Insurance Company (FL home)
* State Farm Lloyds (TX home/commercial)
* State Farm Bank, F.S.B.
* State Farm Investment Management Corp. (SFIMC)
* State Farm VP Management Corp. (SFVPMC)

CEOs

Financial services

In recent years, State Farm has expanded into the financial services arena, such as banking and mutual funds. These are separate from its insurance products. This has expanded its competition beyond the traditional P&C insurance companies like GEICO, Progressive, Farmers Insurance Group, and USAA to include competition with leading banks and investment companies like Bank of America, Citi, JP Morgan Chase, Wells Fargo, Fidelity Investments, Charles Schwab, and E*TRADE.Fact|date=March 2008

Criticism

A recent investigation by CNN reported that major car insurance companies, including State Farm and Allstate Insurance, are increasingly fighting claims from those injured by their insured members. In some cases the settlement proposed amounts to just $50 or the threat that any lawsuit would be made so expensive and time-consuming that it wouldn't be worth the victim's time. State Farm and Allstate have denied these allegations. [ [http://www.cnn.com/2007/US/02/09/insurance.hardball/index.html Auto insurers play hardball in minor-crash claims - CNN.com ] ]

Competition

State Farm's top automobile insurance competitors, based on premium written, include Allstate, Progressive, GEICO, Zurich, Nationwide, USAA, Liberty Mutual, American International Group, and American Family Insurance Group. [http://www.iii.org/media/facts/statsbyissue/auto/]

References

External links

* [http://www.statefarm.com/ State Farm] — main official website
** [http://www.statefarmbank.com/ State Farm Bank] — official website
** [http://www.statefarmyab.com/ State Farm's Youth Advisory Board] — official website
* [http://sfresearchcenter.com/ State Farm's University of Illinois Research Center]