State Farm 2013 Annual Report Download

STATE FARM MUTUAL
AUTOMOBILE INSURANCE COMPANY
Statement of Condition (In Millions of Dollars)
Assets 2013 2012
Cash and Short Term Investments $ 537 $ 454
Bonds 43,412 42,213
Unaffiliated Common & Preferred Stocks 43,961 36,214
Equity in Insurance Subsidiaries 28,853 24,980
Other Assets 12,575 11,072
Total Assets $129,338 $114,933
Liabilities
Claims and Claim Expenses $ 27,565 $ 27,044
Unearned Premiums 10,470 9,927
Other Liabilities 15,624 12,720
Surplus
Funds for Protection of State Farm
Mutual Policyholders $ 20,690 $ 19,949
Investment Fluctuation Reserve 22,787 17,287
Funds Assigned for Protection of
Customers of Subsidiaries 30,479 26,642
Funds Assigned for Catastrophe
Reinsurance Assumed from Affiliates 1,723 1,364
Total Liabilities and Surplus $129,338 $114,933
Summary of Operating Data (In Millions of Dollars)
2013 2012
Premium Earned $ 34,620 $ 33,210
Less: Dollars for Claims 22,141 21,523
Expenses for Paying Claims 5,622 5,240
Service and Administrative Fees 8,864 8,026
Underwriting Gain or (Loss) (2,007) (1,579)
Plus: Investment Gain1 and Other Income 3,420 3,070
Income Before Dividends and Taxes 1,413 1,491
Less: Dividends to Policyholders 0 0
Income Taxes Incurred (Recoverable) (423) (34)
Net Income $ 1,836 $ 1,525
1Investment Gain 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; Chairman and Chief Executive Officer,
The Deltennium Group, Inc.
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
2013
ANNUAL REPORT
TO STATE FARM®
MUTUAL POLICYHOLDERS
During 2013, State Farm Mutual maintained the
financial strength that allows us to faithfully keep
our promises to our customers. The Company was
profitable in 2013, largely due to investment income.
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.
Our goal is to help you 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.
153-9000.41 153-9000.41