Statefarm Story
In a little over 80 years, Statefarm has grown from a small, farming-community-based mutual auto insurer to one of the world's largest financial institutions.
Despite this tremendous growth, our founder's original philosophy of insurance coverage at a fair price, coupled with fair claim settlement has remained the cornerstone of our success.
It began in 1921, when a successful Illinois area farmer named George J. Mecherle (pronounced Ma-herl), was forced to change careers due to his wife's health concerns. The couple moved to the city of Bloomington, and Mecherle took a job as an insurance salesman.
He liked the work, and quickly became successful, but he did not agree with the fact that farmers were charged the same auto insurance rates as non-farmers even though they were consistently less accident-prone.
When he suggested a better way to sell insurance, his employer laughed and said, "If you think you've got such a good idea, why don't you start your own company?" So he did.
In 1922 Mecherle opened his own firm, Statefarm Insurance, as a mutual automobile insurance company owned by its policyholders. This revolutionized the insurance business by introducing low-risk rates, safe-driver discounts, and semi-annual payment plans.
Today Statefarm Insurance Companies® is one of the 20 largest corporations on the Fortune 500. It includes 79,200 employees and more than 16,700 agents servicing 71.6 million policies in the United States and Canada.
The highly principled mission, vision and values of Statefarm today are still those of George J. Mecherle.
Statefarm Facts
Statefarm insures more cars than any other insurer in North America and is the leading U.S. home insurer. Statefarm's 17,800 agents and 68,000 employees serve over 74 million auto, fire, life and health policies in the United States and Canada. Statefarm also offers customers banking, annuities and mutual fund products. Statefarm Mutual Automobile Insurance Company is the parent of the Statefarm family of companies. Statefarm is ranked No.22 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com® or in Canada statefarm.ca™.
Statefarm Insurance Companies
Here are some of the major companies in the Statefarm Group and a bit of their history. Detailed financial information is contained in the 2005 Year In Review or Annual Report.
Statefarm 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 Statefarm®. Statefarm Mutual Automobile Insurance Company is a mutual insurance company and as such does not have any shareholders. Statefarm Mutual Automobile Insurance Company began marketing health insurance in 1965.
Statefarm 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:
Statefarm Life Insurance Company was founded in 1929. Statefarm Life and Accident Assurance Company began operations in 1961 to meet special requirements for life insurance in New York, Connecticut, and Wisconsin. Statefarm Life Insurance Company and Statefarm Life and Accident Assurance Company have been marketing Variable Products to our customers through Statefarm VP Management Corporation since 1998.
Statefarm Fire and Casualty Company was formed in 1935 to provide property insurance for Statefarm customers in the United States and Canada. The product lines written by Statefarm Fire and Casualty Company include homeowners, boat owners and many commercial lines. The company has been the nation's largest insurer of homes since 1964.
Statefarm County Mutual Insurance Company of Texas became a part of the Statefarm Group in 1961 and protects motorists in Texas . This company cedes most of the risk assumed under its policies to Statefarm Mutual Automobile Insurance Company under a quota-share reinsurance arrangement. The company is under common management with Statefarm Mutual Automobile Insurance Company.
Statefarm Indemnity Company commenced business in 1991 and writes auto insurance in the state of New Jersey for the Statefarm group. The company was formed to provide more accurate pricing and risk assessment in this unique market. In 2006, Statefarm Guaranty Insurance Company, a wholly owned subsidiary of Statefarm Indemnity Company, began writing auto insurance business in the state of New Jersey. All business written by Statefarm Guaranty Insurance Company is ceded to Statefarm Indemnity Company.
Statefarm General Insurance Company was organized in 1962 as a property insurance affiliate. This company has evolved into the primary writer of Statefarm homeowners and property liability insurance in the state of California.
Statefarm Florida Insurance Company commenced business Feb. 1, 1999 and is the primary writer of homeowners and property liability insurance in the state of Florida.
Statefarm Lloyds is an association of underwriters operating under the Lloyds Plan as provided in Texas law. It underwrites homeowners and commercial multiple peril insurance in that state. It began writing business in 1983. The association's insurance operations are managed by its attorney in fact, Statefarm Lloyds, Inc., as required by law.
Statefarm Bank, F.S.B. received formal approval for a thrift charter from the Office of Thrift Supervision (OTS) in November 1998 and is generally referred to as "Statefarm Bank®". Its focus is on consumer-oriented financial products, complementing Statefarm's insurance focus on personal lines.
Statefarm Bank is a nontraditional financial institution and does not have branch offices. The bulk of direct customer interaction and product assistance is provided by Statefarm® agents, augmented by a telephone call center, mail and the Internet. As of December 31, 2005, the Bank held $12 billion in total assets.
Statefarm Investment Management Corp. (SFIMC) serves as the investment advisor for the Statefarm Associate and Retail Mutual Funds and the underlying Funds offered in connection with Statefarm Variable Products. In addition, SFIMC serves as the transfer agent for the Statefarm Associate and Retail Mutual Funds . SFIMC has over 35 years experience managing investment company assets. Statefarm VP Management Corp. (SFVPMC) serves as the broker/dealer for the Statefarm Associate and Retail Mutual Funds and Statefarm Variable Products .
