State Farm 2014 Annual Report Download

STATE FARM MUTUAL
AUTOMOBILE INSURANCE COMPANY
Statement of Condition (In Millions of Dollars)
Assets 2014 2013
Cash and Short Term Investments $ 1,397 $ 537
Bonds 43,834 43,412
Unaffiliated Common & Preferred Stocks 47,863 43,961
Equity in Insurance Subsidiaries 31,529 28,853
Other Assets 14,175 12,575
Total Assets $138,798 $129,338
Liabilities
Claims and Claim Expenses $ 28,534 $ 27,565
Unearned Premiums 11,101 10,470
Other Liabilities 19,286 15,624
Surplus
Funds for Protection of State Farm
Mutual Policyholders $ 19,568 $ 20,690
Investment Fluctuation Reserve 24,933 22,787
Funds Assigned for Protection of
Customers of Subsidiaries 33,246 30,479
Funds Assigned for Catastrophe
Reinsurance Assumed from Affiliates 2,130 1,723
Total Liabilities and Surplus $138,798 $129,338
Summary of Operating Data (In Millions of Dollars)
2014 2013
Premium Earned $ 36,297 $ 34,620
Less: Dollars for Claims 23,771 22,141
Expenses for Paying Claims 6,283 5,622
Service and Administrative Fees 9,201 8,864
Underwriting Gain or (Loss) (2,958) (2,007)
Plus: Investment Gain1 and Other Income 3,512 3,420
Income before Dividends and Taxes 554 1,413
Less: Dividends to Policyholders 0 0
Income Taxes Incurred (Recoverable) (492) (423)
Net Income $ 1,046 $ 1,836
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
Allan R. Landon – Former Chairman of the Board and Chief Executive
Officer of Bank of Hawaii Corporation
Judith A. Muhlberg – Consultant on Strategic Communications,
Gagen MacDonald LLC
Gary L. Perlin – Former Chief Financial Officer of Capital One
Financial Corporation
Susan M. Phillips – Professor Emeritus of Finance, George Washington
University in Washington, D.C.
Edward B. Rust Jr. – Chairman of the Board and Chief Executive Officer,
State Farm Mutual
Paul T. Stecko – Non-Executive Chairman, Packaging Corporation of America
Pamela B. Strobel – Former Executive Vice President and Chief
Administrative Officer, Exelon Corporation
Michael L. Tipsord – Vice Chairman, President and Chief Operating Officer,
State Farm Mutual
John D. Zeglis – Former Chairman of the Board and Chief Executive
Officer, AT&T Wireless
2014 ANNUAL REPORT
TO STATE FARM® MUTUAL POLICYHOLDERS
For nearly 93 years, our goal has
been to help people confidently
manage the risks of everyday life,
recover from the unexpected, and
realize their dreams. In 2014, we
continued to build the financial
strength necessary to keep these
promises to you, our customers.
We ended the year profitable,
largely due to investment income.
The A.M. Best Co., which provides an independent
opinion of an insurance company’s ability to meet
obligations to policyholders, continues to give its
highest rating (A++) to State Farm Mutual.
As always, thank you for allowing us the privilege of
serving 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
the first named insured has 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.
153-9000.42 153-9000.42