Insurance

State Farm

Last edited by on April 18, 2010 - 7:32pm
Company Snapshot: 

State Farm Mutual Automobile Insurance Company was founded on June 7, 1922, by George J. Mecherle, a retired farmer. It initially concentrated on meeting auto insurance needs of Illinois farmers through a mutual organization owned by the customers. By 1942, the company was the nation's largest auto insurer, a ranking it has held ever since. About one out of every five cars on the road is insured with State Farm®. State Farm Mutual Automobile Insurance Company is a mutual insurance company and as such does not have any shareholders. State Farm Mutual Automobile Insurance Company began marketing health insurance in 1965.

Source: http://www.statefarm.com

State Farm Mutual Automobile Insurance Company is also the parent company of several wholly-owned subsidiaries that provide property and life insurance, banking products and mutual funds. These entities include:

State Farm Mutual Automobile Insurance Company State Farm Life Insurance Company State Farm Life and Accident Assurance Company State Farm Fire and Casualty Company State Farm County Mutual Insurance Company of Texas State Farm Indemnity Company State Farm Guaranty Insurance Company State Farm General Insurance Company State Farm Florida Insurance Company State Farm Lloyds State Farm Bank State Farm Investment Management Corp State Farm VP Management Corp

Source: http://www.statefarm.com/about/companie.asp

Ownership status: 
Privately held
Number of employees worldwide: 
68,000
Chief executive officer: 
Edward B. Rust, Jr.
Website: 
State Farm
Global Fortune 500 rank: 
31
Tel: 
1-309-766-2311
Net Income: 
$1.036 Billion in 2009
Total revenue: 
$31.5 Billion in 2009
Corporate accountability
Accountability overview: 

Board of Directors:

Board of Directors Dan E. Arvizu – Director, National Renewable Energy Laboratory, U.S. Department of Energy Gerald M. Czarnecki – Chairman and Chief Executive Officer, The Deltennium Group, Inc. Michael C. Davidson – Vice Chairman and Chief Agency and Marketing Officer, State Farm Mutual Christopher C. DeMuth – D.C. Searle Senior Fellow, American Enterprise Institute for Public Policy Research W. H. Knight Jr. – Professor of Law, Seattle University School of Law Judith A. Muhlberg – Consultant on Strategic Communications, Gagen MacDonald LLC Susan M. Phillips – Dean and Professor of Finance, School of Business, George Washington University Edward B. Rust Jr. – Chairman of the Board, President, and Chief Executive Officer, State Farm Mutual James E. Rutrough – Vice Chairman and Chief Administrative Officer, State Farm Mutual Paul T. Stecko – Chairman of the Board and Chief Executive Officer, Packaging Corporation of America Pamela B. Strobel – Former Executive Vice President and Chief Administrative Officer, Exelon Corporation Michael L. Tipsord – Vice Chairman and Chief Financial Officer, State Farm Mutual John D. Zeglis – Former Chairman of the Board and Chief Executive Officer, AT&T Wireless

Labor: 

As of 12/31/2009:

  1. Has 67,029 employees *
  2. Has 17,627 agents *
  3. Has

* 13 zones including Canada * 30 Operations Centers * More than 16,000 agents offices * 343 Claims offices **

Anti-competitive and consumer protection: 

Because of the McCarran Ferguson Act, insurance companies are exempt from antitrust laws. Legislation has been proposed which would repeal the McCarran Ferguson Act. This would force insurance companies to comply with antitrust laws.

Political influence (national and international): 

State Farm pays significant sums of money to elected officials and lobbyists.

Recently joined with other financial services companies to hire Apco Worldwide as their PR firm to try to improve their image.