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State Farm Mutual Automobile Insurance Company

State Farm Announces 2021 Financial Results

Drive Safe & Save Overview Video | State FarmĀ®

Bloomington, IL, February 25, 2022 In 2021, State Farm Insurance Companies experienced record growth in auto, home and life policies. While experiencing record growth in auto policies, State Farm reported another year-over-year decrease in auto earned premium. The decrease in auto premium continues to reflect a focus on returning value to customers in the form of lower premiums when appropriate. The State Farm life insurance companies paid out nearly $600 million in dividends to policyholders, and issued a record $116 billion in new policy volume bringing the year-end 2021 individual life insurance in force to $1.1 trillion. As the number one Auto and Homeowners insurer in the U.S. and a leader in individual life insurance, State Farm is committed to serving its policyholders and remains a strong choice for insurance and financial services needs.

For nearly 100 years, State Farm has been there to help our customers prepare for and recover from the unexpected. This past year was no different. We helped customers recover from another year of catastrophic events and the life insurance companies continued to be there for our customers, said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney. We entered our 100th year with financial strength and record growth in our auto, home and life insurance businesses. We are pleased more customers are choosing State Farm as we remain focused on helping more people in more ways.

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Battling Industry Challenges: 1980s

During the 1980s, the property and casualty insurance industry was rocked by a number of problems. The industry sufferedsharp increases in claims costs, especially natural-disaster claims and environmental-cleanup costs in the commercial arena. The rising cost of car parts, labor, medical treatment, and litigation was also impacting the cost of insurance, and customers were complaining.

In 1988, in reaction to the rising cost of insurance, California voters approved Proposition 103, legislation calling for an overhaul of the states insurance system, resulting in major rate reductions for auto, homeowners, and business insurance, and a regulatory panel to approve rate increases, replacing the longstanding system in which insurers set their own rates. State Farm was one of the insurers that appealed this ruling and, along with other insurers, was required to justify its rate levels.

In 1989, a policyholder lawsuit was brought against State Farm. The suit alleged that State Farm was holding as its reserve twice as much as the industry standard and led to a court order requiring State Farm to distribute $6.87 billion in refunds to policyholders. State Farm claimed its conservatism was practical and necessary CEO Edward B. Rust, Jr., told Business Week, August 21, 1989, When it comes to claim time, customers dont want an IOU.

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Growth And Diversification: 1930s

In 1928, just six years after the companys founder told a banker in Bloomington, Tve never had an account here. …Ive never cashed a check here, as far as I know. Ive never tried to borrow your money. But Im going to start a little business in this town and, by golly, youre going to lend me the money I need to get started,the company opened its first branch office, in Berkeley, , and annual income surpassed $1 million. In 1929, the company moved into its own eight-story building, to which it added five floors in 1934. In 1939, State Farm built another eight-story building next door, to which it also added five floors in 1948. In the early 1970s, the company built its present headquarters at a site on the eastern edge of Bloomington.

The companys growth was not just a matter of volume State Farm continually expanded the services it offered. In January 1929, the company formed a subsidiary, State Farm Life Insurance Company, which, like its parent company, has flourished.

During the banking holiday that brought in the era, State Farm Mutual operated at a loss, but it continued to operate at a time when many insurance companies folded. The National Recovery Act eliminated discounts on auto parts, and increased wages under this act sent repair costs higher. State Farm tightened in its belt, dropped coverage in its highest risk areas, and continued to attract and satisfy customers.

George Mecherle Enters The Auto Insurance Business: 1920s

State Farm Mutual Automobile Insurance Company Logo

State Farm began in 1922 as one mans plan to offer low-cost automobile insurance to the farmers of Illinois: hence the name State Farm Mutual Automobile Insurance Company. State Farms early success and strong standing in a volatile marketplace is surely due to the vision of the companys founder, George Mecherle. Mercherles beginnings are as modest as the companys success is extraordinary. He was a farmer until he was 40, when his wifes failing health forced them to leave their farm and Mecherle started selling insurance with a Bloomington, Illinois, company. Running his own farm had shaped Mecherle into a man who was constantly looking to innovate and improve conditions. When, in his characteristic outspoken, straightforward manner, he told his boss at the insurance company some of his ideas for improving the business, the boss said, Well George, if you dont like the way we run things, go start your own company.

This innovation of tying insurance rates to risk level established State Farms legacy as a smart insurer that passed savings on to the customer. The Journal observed, Until the late 1950s, the companys competitors were clinging to their traditional insurance rates while State Farm was boasting in ads of savings of up to 40%on its auto insurance.

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Fast Facts: About State Farm Mutual Automobile Insurance Company

Ownership: State Farm is a mutual company.

Officers: Edward B. Rust, Jr., Pres. & Chmn. Vincent J. Trosino, Sr. VP & Treasurer

Employees: 69,600

Principal Subsidiary Companies: State Farm’s subsidiaries include: State Farm Indemnity Company State Farm Life Insurance Company State Farm Life and Accident Assurance Company State Farm Fire and Casualty Company State Farm General Insurance Company State Farm Lloyds and State Farm County Mutual Insurance Company ofTexas.

Chief Competitors: State Farm competes with other large insurance companies including: AETNA AFLAC Allstate Blue Cross/BlueShield Chubb Cigna Metropolitan Nationwise and Prudential.

Ironically, it was in the boom years that followed the war when the company faced more challenges. Americans, eager to use their automobiles again and to take advantage of their newfound prosperity, were driving more than ever and making more insurance claims. In 1946 State Farm began losing $1 million a month. Still, Mecherle had a positive attitude, insisting on a few basic principles, but then telling his employees that anything else could be changed to meet the changing times. As a result, the company was able to reorganize, and by the time of Mecherle’s death in 1951, State Farm had more than two million automobile insurance clients.

State Farm Mutual Automobile Insurance Co

Insider Profile

Latest Holdings, Performance, AUM

State Farm Mutual Automobile Insurance Cohas disclosed 133 total holdings in their latest SEC filings.Most recent portfolio value is calculated to be $ 87,548,127,000 USD.Actual Assets Under Management is this value plus cash .State Farm Mutual Automobile Insurance Co’s top holdings areEli Lilly And Co ,Johnson & Johnson ,Illinois Tool Works Inc. ,Apple Inc ,andArcher-Daniels-Midland Co .State Farm Mutual Automobile Insurance Co’s new positions includeDow Chemical Co. ,Woodside Petroleum Ltd. ,Embecta Corp ,Warner Bros Discovery Inc ,and.State Farm Mutual Automobile Insurance Co’s top industries are”Wholesale Trade-durable Goods” ,”Printing, Publishing, And Allied Industries” ,and”Building Materials, Hardware, Garden Supply, And Mobile Home Dealers” .

64.60

13F and Fund Filings

This form was filed on 2022-08-11 for the reporting period 2022-06-30.Click the link icon to see the full transaction history.

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What Kind Of Claim Are You Filing

Try to have this information handy when you file your claim:

  • Date and time of incident
  • Vehicles involved

Filing online or with our app is fast and convenient, but if you want to file by phone, call 800-SF-Claim.

Try to have this information handy when you file your claim:

  • Date and time of incident
  • Vehicles involved

Prefer to call? Were here to help: 800-SF-Claim

Try to have this information handy when you file your claim:

  • Date and time of incident
  • Property involved

Prefer to call? Were here to help: 800-SF-Claim

Try to have this information handy when you file your claim:

  • Name and contact information

Call 866-855-1212 to file your claim

Im so sorry for your loss. Well try to make this as easy as possible. Please have this information handy when you file your claim:

  • Insured person’s name, DOB, and state of residence
  • Name, address, and phone of a contact person
  • Date and cause of death

Call 877-292-0398 to file your claim

Try to have this information handy when you file your claim:

  • Name, contact information
  • Date and time of the incident

Call 800-SF-Claim to file your claim

Try to have this information handy when you file your claim:

  • Insured persons name and contact information
  • Date, location, and cause of loss
  • Description of the incident and damages

A Specialist In True Stories

State Farm Mutual Automobile Insurance Co. v. Campbell Case Brief Summary | Law Case Explained

The first television spots in State Farm’s “True Stories” campaign were directed by Academy Award-winning documentary filmmaker Errol Morris. He received his Oscar in 2004 for The Fog of War, concerning the life of Robert S. McNamara, U.S. secretary of defense during the . Morris’s other documentaries included Gates of Heaven, The Thin Blue Line, A Brief History of Time, and Fast, Cheap, and Out of Control.

There was another compelling reason that insurers were padding their marketing budgets in an effort to poach customers from one another: the car-insurance business had become more profitable than ever. Cars were better built and safer. There were fewer accidents caused by mechanical problems, and as a result insurers paid out fewer claims. The U.S. population was also growing older. Older drivers tended to drive slower and more cautiously, again resulting in fewer accidents and claims and greater profits for insurers. Hence, State Farm’s eroding market share was costing it a great deal of money. The company wanted not only to hold the line but also to build on its number one position and post even greater profits in the years to come.

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State Farm Mutual Automobile Insurance Company Installment Payment Plans

Electronic Funds Transfer Program : None
1The number of installments/payments includes down payment. Installment fee is not charged on first installment/down payment.Please note that you have the option to pay your bill in full in one payment to avoid paying any of the applicable installment fees. Reasonable efforts have been made to ensure that this information is accurate, it may not apply to your specific circumstances. You are urged to contact your producer or insurer with specific questions concerning installment plans.

Expansion And New Offerings: 1960s

Due to special requirements in state laws, State Farm Life Insurance was unable to do business in , Connecticut, and , so to serve these states the subsidiary State Farm Life and Accident Assurance Company was incorporated in 1961. The next year, State Farm General Insurance Company was established to protect low-value property.

In 1962, State Farm offered auto insurance at a 20 percent savings to students who were doing well in school, based on the hope that if they were home studying for their good grades, they would be less likely to be out driving cars. In 1963, the company instituted monthly premium payments, and agents were authorized to make on-the-spot auto claim payments of up to $250, which improved customer service considerably. In 1965, State Farm began offering limited . The policy offered $15 for every day a policyholder spent in the hospital. This payment was touted as a possible supplement to other health insurance a person may have, perhaps to help pay for a babysitter or a housekeeper while a mother was away from home.

In 1966, an advanced computer system was installed, linking regional offices to headquarters in Bloomington. This investment, and the attention State Farm was paying to customer service earned State Farm praise from consumer groups in 1970.

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State Farm Mutual Automobile Insurance Company

One State Farm Plaza

Total Assets: $71 billion NAIC: 524126 Direct Property and Casualty Insurance Carriers 524113 Direct Life Insurance Carriers

State Farm Mutual Automobile Insurance Company, the cornerstone in the State Farm Insurance Companies group, has been the number one automobile insurer in the since 1942. Approximately one out of five cars in the is insured through State Farm. Through a network of over 16,700 agents, the company and its subsidiaries handle 71 million auto, home, life, and policies. Farm group also offers its customers mutual funds and a variety of banking services, including deposit accounts, CDs, and mortgages via the and telephone.

State Farm Insurance Companies: Insurance In United States North America

State Farm Mutual Automobile Insurance Co., the largest U.S. property ...

State Farm Mutual Automobile Insurance Company is a Insurance located in Bloomington, IL United States, North America. Current Assets for State Farm Insurance Companies is $193,935,000,000 and SWFI has 10 periods of historical assets, 2 subsidiaries, 1 Opportunities/RFPs, 15 personal contacts available for CSV Export.

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