State Farm 2010 Annual Report Download

STATE FARM MUTUAL
AUTOMOBILE INSURANCE COMPANY
Statement of Condition (In Millions of Dollars)
Assets 2010 2009
Cash and Short Term Investments $ 1,019 $ 1,362
Bonds 39,296 36,200
Unaffiliated Common & Preferred Stocks 34,407 31,781
Equity in Insurance Subsidiaries 22,352 21,297
Other Assets 9,915 10,040
Total Assets $106,988 $ 100,681
Liabilities
Claims and Claim Expenses $ 24,548 $ 22,278
Unearned Premiums 9,235 9,066
Other Liabilities 11,983 11,156
Surplus
Funds for Protection of State Farm
Mutual Policyholders $ 20,560 $ 20,630
Investment Fluctuation Reserve 15,828 14,211
Special Surplus Segregation for Affiliates 2,478 2,343
Funds Assigned for Protection of
Customers of Subsidiaries 21,469 20,361
Funds Assigned for Catastrophe
Reinsurance Assumed from Affiliates 886 634
Total Liabilities and Surplus $106,988 $ 100,681
Summary of Operating Data (In Millions of Dollars)
2010 2009
Premium Earned $ 32,359 $ 32,064
Less: Dollars for Claims 22,795 22,449
Expenses for Paying Claims 4,239 4,312
Service and Administrative Fees 7,396 7,366
Underwriting Gain or (Loss) (2,070) (2,063)
Plus: Investment Gain and Other Income1 2,886 2,509
Income Before Dividends and Taxes 815 446
Less: Dividends to Policyholders 0 0
Income Taxes Incurred (Recoverable) (136) (125)
Net Income $ 951 $ 570
1Investment Gain and Other Income is reported net of capital gains tax.
The financial statements of the company are audited by an independent
public accounting firm.
Board of Directors
Dan E. Arvizu – Director, National Renewable Energy Laboratory,
U.S. Department of Energy
Gerald M. Czarnecki – President and Chief Executive Officer,
O2 Media, 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. Steven Jones – Professor of Organizational Behavior and Strategy,
University of North Carolina
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 – Former 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 – Executive Chairman, Packaging Corporation
of America
Pamela B. Strobel – Former Executive Vice President and Chief
Administrative Officer, Exelon Corporation
Michael L. Tipsord – Vice Chairman and Chief Operating Officer,
State Farm Mutual
John D. Zeglis – Former Chairman of the Board and Chief Executive
Officer, AT&T Wireless
2010 ANNUAL REPORT
TO STATE FARM® MUTUAL POLICYHOLDERS
State Farm Mutual remains
financially strong. In fact, it has
again earned the highest possible
rating (A++) from A.M. Best Co.
Improved investment results
offset continued underwriting
losses in 2010.
We’re working hard to provide the best possible
service in more efficient ways. We appreciate your
continued support and believe you’ve made a wise
choice in allowing State Farm and your State Farm
agent to serve you.
Edward B. Rust Jr.
Chairman of the Board and Chief Executive Officer
A complete annual financial report is available at www.naic.org/cis.
Notice of Annual Meeting
The annual meeting of State Farm Mutual Automobile
Insurance Company is held each year at 10 a.m. on the
second Monday of June at the company’s Corporate
Headquarters, One State Farm Plaza, Bloomington, Illinois.
All members may participate in the annual meeting and
have a right to vote by proxy or in person. You may receive
a proxy by writing to Customer Service, One State Farm
Plaza, Bloomington, Illinois 61710. Please include your
State Farm Mutual Automobile Insurance Company policy
number in your request. Proxies must be on file with the
Corporate Secretary 20 days before the annual meeting.
State Farm Mutual Automobile Insurance Company
Bloomington, IL
Please see statefarm.com® for
additional information about the company.
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