State Farm 2011 Annual Report Download

STATE FARM MUTUAL
AUTOMOBILE INSURANCE COMPANY
Statement of Condition (In Millions of Dollars)
Assets 2011 2010
Cash and Short Term Investments $ 751 $ 1,019
Bonds 40,875 39,296
Unaffiliated Common & Preferred Stocks 33,652 34,407
Equity in Insurance Subsidiaries 22,438 22,352
Other Assets 10,380 9,915
Total Assets $108,097 $ 106,988
Liabilities
Claims and Claim Expenses $ 26,181 $ 24,548
Unearned Premiums 9,439 9,235
Other Liabilities 11,686 11,983
Surplus
Funds for Protection of State Farm
Mutual Policyholders $ 20,157 $ 20,560
Investment Fluctuation Reserve 15,612 15,828
Special Surplus Segregation for Affiliates 2,610 2,478
Funds Assigned for Protection of
Customers of Subsidiaries 21,456 21,469
Funds Assigned for Catastrophe
Reinsurance Assumed from Affiliates 957 886
Total Liabilities and Surplus $108,097 $ 106,988
Summary of Operating Data (In Millions of Dollars)
2011 2010
Premium Earned $ 32,640 $ 32,359
Less: Dollars for Claims 22,794 22,795
Expenses for Paying Claims 4,311 4,239
Service and Administrative Fees 7,527 7,396
Underwriting Gain or (Loss) (1,993) (2,070)
Plus: Investment Gain and Other Income1 2,901 2,886
Income Before Dividends and Taxes 909 815
Less: Dividends to Policyholders 0 0
Income Taxes Incurred (Recoverable) (180) (136)
Net Income $ 1,088 $ 951
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
Gerald M. Czarnecki – President and Chief Executive Officer,
O2 Media, Inc.
Michael C. Davidson – Vice Chairman, State Farm Mutual
Christopher C. DeMuth – Distinguished Fellow, Hudson Institute
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
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
2011
ANNUAL REPORT
TO STATE FARM®
MUTUAL POLICYHOLDERS
State Farm Mutual’s underwriting losses continued
in 2011, a year that saw more than its share of severe
springtime storms. But those underwriting losses
were offset by investment gains, and State Farm
Mutual maintained its financial strength. In fact,
the A.M. Best Co., which provides an independent
opinion of an insurer’s ability to meet its obligations
to policyholders, continues to give its highest rating
(A++) to State Farm Mutual.
We remain dedicated to helping people manage the
risks of everyday life as efficiently as possible. And
we thank you for allowing us 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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