State Farm 2015 Annual Report Download

2015 ANNUAL REPORT
TO STATE FARM® MUTUAL POLICYHOLDERS
For nearly 94 years, State Farm has
been there when customers need
us most.
During 2015, we maintained our
financial strength, which enables
us to keep this promise. We ended
the year profitable, primarily due to
an investment gain that offset an
underwriting loss.
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.
Thank you for putting your trust in State Farm. We are
proud to serve you.
Michael L. Tipsord
Vice Chairman, President 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.
153-9000.44
STATE FARM MUTUAL
AUTOMOBILE INSURANCE COMPANY
Statement of Condition (In Millions of Dollars)
Assets 2015 2014
Cash and Short Term Investments $ 1,345 $ 1,397
Bonds 41,766 43,834
Unaffiliated Common & Preferred Stocks 43,120 47,863
Equity in Insurance Subsidiaries 34,842 31,529
Other Assets 17,422 14,175
Total Assets $138,495 $138,798
Liabilities
Claims and Claim Expenses $ 28,566 $ 28,534
Unearned Premiums 11,518 11,101
Other Liabilities 15,780 19,286
Surplus
Funds for Protection of State Farm
Mutual Policyholders $ 22,884 $ 19,568
Investment Fluctuation Reserve 20,618 24,933
Funds Assigned for Protection of
Customers of Subsidiaries 36,632 33,246
Funds Assigned for Catastrophe
Reinsurance Assumed from Affiliates 2,497 2,130
Total Liabilities and Surplus $138,495 $138,798
Summary of Operating Data (In Millions of Dollars)
2015 2014
Premium Earned $ 37,094 $ 36,297
Less: Dollars for Claims 25,379 23,771
Expenses for Paying Claims 6,272 6,283
Service and Administrative Fees 9,649 9,201
Underwriting Gain or (Loss) (4,206) (2,958)
Plus: Investment Gain1 and Other Income 5,340 3,512
Income before Dividends and Taxes 1,134 554
Less: Dividends to Policyholders 0 0
Income Taxes Incurred (Recoverable) (1,003) (492)
Net Income $ 2,137 $ 1,046
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 Emeritus, National Renewable Energy Laboratory
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 and Distinguished Academic in Residence,
Seattle University School of Law
Allan R. Landon – Former Chairman of the Board and Chief Executive
Officer of Bank of Hawaii Corporation
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, 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 Executive Officer,
State Farm Mutual
John D. Zeglis – Former Chairman of the Board and Chief Executive Officer,
AT&T Wireless
153-9000.44