State Farm 2012 Annual Report Download

STATE FARM MUTUAL
AUTOMOBILE INSURANCE COMPANY
Statement of Condition (In Millions of Dollars)
Assets 2012 2011
Cash and Short Term Investments $ 454 $ 751
Bonds 42,213 40,875
Unaffiliated Common & Preferred Stocks 36,214 33,652
Equity in Insurance Subsidiaries 24,980 22,438
Other Assets 11,072 10,380
Total Assets $114,933 $ 108,097
Liabilities
Claims and Claim Expenses $ 27,044 $ 26,181
Unearned Premiums 9,927 9,439
Other Liabilities 12,720 11,686
Surplus
Funds for Protection of State Farm
Mutual Policyholders $ 19,949 $ 20,157
Investment Fluctuation Reserve 17,287 15,612
Special Surplus Segregation for Affiliates 0 2,610
Funds Assigned for Protection of
Customers of Subsidiaries 26,642 21,456
Funds Assigned for Catastrophe
Reinsurance Assumed from Affiliates 1,364 957
Total Liabilities and Surplus $114,933 $ 108,097
Summary of Operating Data (In Millions of Dollars)
2012 2011
Premium Earned $ 33,210 $ 32,640
Less: Dollars for Claims 21,523 22,794
Expenses for Paying Claims 5,240 4,311
Service and Administrative Fees 8,026 7,527
Underwriting Gain or (Loss) (1,579) (1,993)
Plus: Investment Gain and Other Income1 3,070 2,901
Income Before Dividends and Taxes 1,491 909
Less: Dividends to Policyholders 0 0
Income Taxes Incurred (Recoverable) _ (34) (180)
Net Income $ 1,525 $ 1,088
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 – Senior Managing Director and Executive
Producer, Ventureland Productions, LLC
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 – Professor Emeritus of Finance, George Washington
University in Washington, D.C.
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
2012
ANNUAL REPORT
TO STATE FARM®
MUTUAL POLICYHOLDERS
During 2012, State Farm Mutual celebrated its
90 anniversary. The Company remains financially
strong and was profitable in 2012 as investment
gain offset an improved underwriting loss. 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.
Thank you for allowing us to serve you.
Edward B. Rust Jr.
Chairman of the Board and Chief Executive Officer
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.
153-9000.40 153-9000.40