State Farm also experienced growth in other lines of business, and the State Farm life insurance companies paid out nearly $600 million in dividends to policyholders and ended 2020 with nearly a trillion dollars of individual life insurance in force. As the number one Auto and Homeowners insurer in the U.S. and a leader in individual life insurance, State Farm is committed to serving its policyholders and remains a strong choice for insurance and financial services needs.

“We strive to help more people in more ways. In an unprecedented year like 2020, we focus on our core mission to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams,” said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney. “The Good Neighbor Relief Program is a testament of our commitment to our policyholders and communities. Whether premium relief, dividends to State Farm Mutual auto customers, payment flexibility or philanthropic efforts in the communities we live and work, we're focused on relief and recovery efforts.”

The State Farm P-C group of companies reported earned premium of $65.1 billion, a combined underwriting gain of $1.9 billion, and paid $1.9 billion in dividends to policyholders. This result compared to an underwriting gain of $777 million on earned premium of $64.8 billion in 2019. The 2020 underwriting results reflect lower auto lines incurred claims offset by returns of value to customers in the form of lower premiums, along with an increase in homeowners incurred claims. The increase in homeowners incurred claims during 2020 was due to significant catastrophe activity across the country. The 2020 underwriting gain, combined with dividends to policyholders, and investment and other income of $4.6 billion, resulted in a P-C pre-tax operating gain of $4.5 billion, which was $1.2 billion lower than 2019. Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was $78.9 billion for 2020 compared to $79.4 billion for 2019. State Farm reported net income of $3.7 billion in 2020 compared to $5.6 billion of net income in 2019. The net worth for the State Farm group ended the year at $126.1 billion compared with $116.2 billion at year-end 2019. The change includes a significant increase in the value of the P-C companies’ unaffiliated stock portfolio, driven by increases in the U.S. equities market.

The State Farm insurance operations consist of eleven P-C companies and two life companies, each of which is managed on an individual affiliate level. The P-C companies are primarily engaged in automobile, health, homeowners, commercial multiple peril (CMP) and reinsurance lines of business. The life companies are primarily engaged in individual life insurance and annuity business. The State Farm group makes third party mutual funds and third party banking products available through affiliated State Farm companies that act as intermediaries between the third parties and State Farm customers. State Farm provides insurance and financial services products across over 84 million policies and accounts.

Auto – The State Farm auto insurance business represented 62 percent of the P-C companies’ combined net written premium. Earned premium was $41.3 billion. Incurred claims and loss adjustment expenses were $27.6 billion and all other underwriting expenses totaled $10.1 billion. The underwriting gain was $3.5 billion and dividends to policyholders totaled $1.9 billion.

Comparable 2019 figures were: earned premium, $41.5 billion; incurred claims and loss adjustment expenses, $32.0 billion; all other underwriting expenses, $10.3 billion; underwriting loss, $764 million.

Homeowners, CMP, Other – The net written premium for the remainder of the State Farm P-C business represented 36 percent of the P-C companies’ combined net written premium. Earned premium was $22.9 billion. Incurred claims and loss adjustment expenses were $18.6 billion and all other underwriting expenses totaled $5.9 billion. The underwriting loss was $1.6 billion.

Comparable 2019 figures were: earned premium, $22.4 billion; incurred claims and loss adjustment expenses, $14.8 billion; all other underwriting expenses, $5.6 billion; underwriting gain, $2.0 billion.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $24 million, excluding the change in the premium deficiency reserve. Net written premium was $710 million.

Comparable figures for 2019 were: underwriting loss, $66 million; net written premium, $707 million.

Life – In 2020, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.5 billion and $584 million in dividends to policyholders. Net income for 2020 was $339 million. There was $994 billion in individual life insurance in force at the end of 2020. 

Comparable 2019 figures were: premium income, $5.5 billion; dividends to policyholders, $578 million; net income, $673 million; individual life insurance in force, $945 billion.

Investment Planning Services – Total assets under management for the Investment Planning Services operation at the end of 2020 were $13.9 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $33 million in 2020.

Comparable figures for 2019 were: total assets under management, $12.7 billion; net loss, $22 million.

GAINSCO, Inc. – On Dec. 31, State Farm Mutual Automobile Insurance Company acquired GAINSCO, Inc. The insurance operations for GAINSCO, Inc. are excluded from the reported results for the State Farm P-C group of companies in this release. In 2020, total revenue was $335 million, net income was $5 million and total assets totaled $421 million.

Although financial information is presented on a group/line of business basis, State Farm Mutual Automobile Insurance Company and each of its affiliates must meet solvency and regulatory requirements on an individual entity-by-entity basis without regard to the solvency or financial condition of any other affiliated entity.

Securities distributed by State Farm VP Management Corp.

State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products. Neither State Farm nor its agents provide investment, tax, or legal advice.

Download the 2020 By the Numbers infographic.  

“For 10 years, I watched bad things happen to good people. I saw things I never want to see again, but it toughened me,” said Kandiss Ecton. “I’m the type of person who strives to be proactive so helping people after something happened to them was difficult.”

These days, Kandiss is a State Farm agent in Ferndale, Michigan. She helps people prepare for the unexpected.

“As an agent, I can’t foresee what will happen to someone, but I help make sure they are covered in the event something does.”

October is National Women’s Small Business Month. Women-owned firms account for 39 percent of all privately held firms and contribute eight percent of employment and 4.2 percent of revenues. One in five firms with a revenue of $1 million or more is woman-owned, according to Businesswomen.org.

“As entrepreneurs, we can create our own paths,” she said. “Women represent a huge economic power and offer important consumer insights. Female buying power is immense.”

Kandiss is involved in several networking groups for women business owners and serves as a committee member of the Women of Color Entrepreneur Circle. She shares her story of becoming a business owner and mentors women who want to do the same or have recently opened a business.

She says some of the challenges small business owners face include hiring, keeping up with the financial responsibilities of the business and providing a safe and welcoming environment for customers and employees.

“As a member of the local chamber of commerce, I stop by new businesses to give them a community welcome packet and introduce myself,” Kandiss said. “I talk with them about the area and offer to connect them with someone who can help answer questions they may have about being a business owner.”

When business owners ask her about their insurance and financial services needs, she explains the impact a loss could have on their business. She also helps them understand that, as the business grows, so do their exposures.

“When talking with business owners about their needs, I say planning ahead is like putting a child in a car seat,” Kandiss said. “It’s a proactive step to help protect their business against the consequences of what could happen.

 “As a State Farm agent, I’m in a position to educate and help people understand what they have at risk. And, if there’s a loss, I can help them rebuild and deliver on the promise.”

HSA Bank, a division of Webster Bank, N.A., and Webster Financial Corporation (NYSE: WBS), the holding company for Webster, announced today that it had signed a definitive agreement to acquire the existing health savings accounts (HSA) of State Farm Bank, F.S.B., a subsidiary of State Farm Mutual Automobile Insurance Company, America’s largest property and casualty insurance provider. This acquisition offers State Farm Bank’s HSA accountholders new and easy ways to manage their healthcare spending and saving through an industry-leading HSA provider with more than two decades of experience.

Under the agreement, approximately 24,000 accounts, including an estimated $140 million in deposits, will transition from State Farm Bank to HSA Bank, the nation’s leading bank administrator and depository of HSAs. Expected closing is in the second or third quarter of 2020. No other terms of the transaction are being disclosed. The transaction is subject to regulatory approval and customary closing conditions.

“We look forward to welcoming State Farm Bank HSA accountholders to HSA Bank,” said Chad Wilkins, President of HSA Bank. “We are excited that State Farm selected HSA Bank as the HSA custodian of choice, and are well-equipped to help accountholders make healthcare financial decisions that are best for them in every stage of life.”

Joe Monk, President and CEO of State Farm Bank added, “State Farm and HSA Bank share a common goal to help people live confidently. HSA Bank is well positioned to help accountholders save and plan for healthcare expenses today and in retirement, and we believe it is a positive move for customers.”

Current State Farm Bank HSA accountholders do not need to take any action. Accountholders will receive communications in advance of the transition.

Barclays Capital Inc. advised State Farm in connection with this transaction.

MEDIA CONTACTS:

Alice Ferreira, Webster Bank  (203) 578-2610  acferreira@websterbank.com

Jennifer Dean, HSA Bank  (920) 453-5286  jedean@hsabank.com

Roszell Gadson, State Farm  (770) 243-9049  roszell.gadson.m2ef@statefarm.com 

“Our focus of putting customers first for nearly 98 years continues to underscore our position as the national leader in protecting people. Each year we help millions of our customers recover from the unexpected and live life confidently with the protection we provide,” said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney. “Our financial strength, along with our local presence and broad product offerings have earned us the loyalty of our customers and are the reasons more customers are choosing State Farm. Our agents, their teams and our employees are committed to providing customers and communities with the products and service they expect from their Good Neighbor.”

The State Farm P-C group of companies reported a combined underwriting gain of $777 million in 2019 on earned premium of $64.8 billion, compared to an underwriting gain of $1.7 billion on earned premium of $65.2 billion in 2018. The 2019 underwriting gain, combined with investment and other income of $5.0 billion, resulted in a P-C pre-tax operating gain of $5.7 billion. The lower underwriting gain in 2019 was driven by higher losses and lower earned premium compared to 2018. Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was

$79.4 billion for 2019 compared to $81.7 billion for 2018. State Farm reported net income of $5.6 billion in 2019, compared to $8.8 billion of net income in 2018. The net worth for the State Farm group ended the year at $116.2 billion compared with $100.9 billion at year-end 2018. The change was primarily due to an increase in the value of the P-C companies’ unaffiliated stock portfolio, driven by increases in the U.S. equities market.

The State Farm insurance operations consist of eleven P-C companies and two life companies, each of which is managed on an individual affiliate level. The P-C companies are primarily engaged in automobile, health, homeowners, commercial multiple peril (CMP) and reinsurance lines of business. The life companies are primarily engaged in individual life insurance and annuity business. The State Farm group also provides banking products and makes mutual funds available through affiliated companies. State Farm provides insurance and financial services products across nearly 84 million policies and accounts.

Auto – The State Farm auto insurance business represented 64 percent of the P-C companies’ combined net written premium. Earned premium was $41.5 billion. Incurred claims and loss adjustment expenses were $32.0 billion and all other underwriting expenses totaled $10.3 billion. The underwriting loss was

$764 million.

Comparable 2018 figures were: earned premium, $42.7 billion; incurred claims and loss adjustment expenses, $31.2 billion; all other underwriting expenses, $10.4 billion; underwriting gain, $1.1 billion.

Homeowners, CMP, Other – The net written premium for the remainder of the State Farm P-C business represented 35 percent of the P-C companies’ combined net written premium. Earned premium was $22.4 billion. Incurred claims and loss adjustment expenses were $14.8 billion and all other underwriting expenses totaled $5.6 billion. The underwriting gain was $2.0 billion.

Comparable 2018 figures were: earned premium, $21.6 billion; incurred claims and loss adjustment expenses, $15.0 billion; all other underwriting expenses, $5.7 billion; underwriting gain, $928 million.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $66 million, excluding the change in the premium deficiency reserve. Net written premium was $707 million.

Comparable figures for 2018 were: underwriting loss, $91 million; net written premium, $703 million.

Life – In 2019, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.5 billion and $578 million in dividends to policyholders. Net income for 2019 was $673 million. There was $959 billion in total life insurance in force at the end of 2019.

Comparable 2018 figures were: premium income, $5.4 billion; dividends to policyholders, $577 million; net income, $706 million; total life insurance in force, $927 billion.

State Farm Bank® – Net income in 2019 was $59 million and total assets for State Farm Bank, F.S.B. were $16.4 billion as of year-end 2019.

Comparable figures for 2018 were: net income, $35 million; total assets, $16.9 billion.

Investment Planning Services – Total assets under management for the Investment Planning Services operation at the end of 2019 were $12.7 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $22 million in 2019.

Comparable figures for 2018 were: total assets under management, $11.2 billion; net income, $7 million.

Although financial information is presented on a group/line of business basis, State Farm Mutual Automobile Insurance Company and each of its affiliates must meet solvency and regulatory requirements on an individual entity-by-entity basis without regard to the solvency or financial condition of any other affiliated entity.

State Farm Bank, Bloomington, Illinois, is a Member FDIC and an Equal Housing Lender. Insurance and securities products offered by affiliated companies of State Farm Bank are not FDIC insured, are not guaranteed by State Farm Bank and are subject to investment risk, including possible loss of principal invested.

Securities distributed by State Farm VP Management Corp.

State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products. Neither State Farm nor its agents provide investment, tax, or legal advice.

Download the 2019 By the Numbers infographic.  

Saving for the Future¹

Saving money helps you achieve your goals. Establish a budget, manage debt and plan for  st8.fm/3steps

Save for the future by learning about basic savings accounts, retirement accounts, and how to make compounding interest work for you. Use this calculator to help determine how much you should consider saving to meet your financial goals.

Health Insurance

Are you happy with your current health plan? Health status, premiums, deductibles, and even regulations may change over time. Be sure your health care coverage meets your needs. Take steps to reduce premiums with wellness discounts that may be available to you. And if you're on Medicare, consider options for a Medicare Supplement that's right for you.

Life Protection

Life insurance is the foundation of financial planning and security. It helps your family recover from financial risks and unexpected costs and lets them plan for tomorrow.

Thinking about financial protection and retirement can seem overwhelming, but as your life changes, so does your financial situation. Key life events such as marriage, moving or buying a home, children, job changes and retirement are important indicators that signal changes that might need to be made.

Disability Insurance

Car insurance? Check. Home insurance? Check. But have you protected one of your most valuable assets? Your paycheck

Among Americans’ top financial concerns is maintaining one’s standard of living in the event of a serious illness or accident. Disability insurance may help address this concern.

Liability Insurance

Safeguard yourself in case an accident results in injuries to someone or a loss to their property. It's possible that your primary policies may not be enough to protect you or your business. A  State Farm liability insurance policy may provide the additional liability coverage you need  to protect your financial future.

¹ State Farm Bank, F.S.B., Bloomington, Illinois (“Bank”), is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and may be subject to investment risk, including possible loss of principal invested. The Bank encourages any interested individual(s) to submit an application for any product(s) offered by the Bank. We also encourage you to obtain information regarding the Bank’s underwriting standards for each type of credit or service offered by visiting statefarm.com® or by contacting the Bank at 877-SF4-BANK (877-734-2265). If you are deaf, hard of hearing, or do not use your voice to communicate, you may contact us via 711 or other relay services.

Product availability may vary by state. Please contact an agent for more information.

On the evening of June 9, 2015, veterinarian, Kenneth Kimbrough, wrapped up his last appointment, said goodbye to his staff, and went home.

“It was business as usual, until the fire department called. Kimbrough Animal Hospital was in flames.”

The doctor and his wife arrived on the scene to find their clinic fully engulfed.

“My biggest fear - the animals inside,” said Kimbrough. “I ran to the kennel. People were shouting, ‘It’s dangerous, don’t go in!’ But I couldn’t stop. I began taking animals out. Started administering CPR on the lawn. I had to get their lungs full of something besides smoke. I had to turn it around.”

Thirty-eight animals perished that night. Only two boxers survived. Officials deemed Kimbrough Animal Hospital a total loss.

“I shared this devastating reality with my clients and the community,” said Kimbrough. “It’s numbing.”

Rebuilding from the ashes

The next day Kimbrough called his State Farm Agent, Dave Powell.

“When I began working with Dr. Kimbrough in 2000, I looked him in the eye and said, ‘On your worst day, I’m going to be there for you.’ That day had arrived,” said Powell.

Together, the pair surveyed the scene, met with the claim specialist and reviewed his policy. While the cause of the fire was never determined, officials suspected it may have started electrically, in a back office.

“As a small business owner, it’s imperative to get back up and running,” Powell explained. “Dr. Kimbrough’s coverage included business interruption which meant State Farm would reimburse his loss of income, and also provides coverage to keep his team employed during the period of restoration. His policy also covered building contents, which allowed him to buy new equipment.”

With the help of State Farm, Kimbrough Animal Hospital began to recover. The old hospital was leveled and the rebuild began. With construction underway, Kimbrough converted his nearby pet grooming facility into a mini animal hospital. Portable buildings were moved onto the grounds so staff could help more people.

“Thank goodness for small business insurance, which made it possible,” said Kimbrough. “Dave, my agent, was with me every step of the way.”

A new chapter

In March 2017, the NEW Kimbrough Animal Hospital opened its doors.

“Our former building was 4,400 square feet. Our new facility is 12,000 square feet,” said Kimbrough. “This allows us to serve customers, provide daycare and grooming, and help more pets. We also have a Fear Free certified doctor on staff, which allows us better serve the physical and emotional wellbeing of animals.”

More than two years later, the clinic is back in action. And while Kimbrough says the memories of that fateful June night will never fade, he’s grateful for the support of his friends, neighbors and the Texas community.

“Thank goodness I could do this. With Dave as my State Farm agent, I had the right coverage, my needs were met and I was guided through the process. Kimbrough Animal Hospital got a second chance.”

“I consider it an honor to be a servant leader for our small business clientele,” said Powell. “Staying in touch to ensure the coverage they have continues to meet their evolving needs ensures people are secure. Helping, it’s what we do.”

The net worth for the State Farm group ended the year at $100.9 billion compared with $97.0 billion at year-end 2017. The increase was primarily due to the P-C pre-tax operating gain, which was partially offset by a decrease in the value of the P-C companies’ unaffiliated stock portfolio, driven by declines in the U.S. equities market.

“As a mutual company, we strive to achieve results that allow us to maintain the financial strength necessary to serve our customers and deliver on the promises we make to be there when the unexpected happens,” said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney. “While 2018 was a profitable year for State Farm, we view our financial results over a longer period of time. Over the last three years, we have increased our financial strength even with a combined underwriting loss, all while helping millions of our customers recover from the unexpected and live life confidently with the protection that we provide. We have been able to achieve these results because we manage our business responsibly for the long-term, and our agents, their teams and our employees are committed to serving our customers and our communities.”

Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was $81.7 billion for 2018 compared to $78.3 billion for 2017. State Farm reported net income of $8.8 billion in 2018, compared to $2.2 billion of net income in 2017. The State Farm insurance operations consist of eleven P-C companies and two life companies, each of which is managed on an individual affiliate level. The P-C companies are primarily engaged in automobile, health, homeowners, commercial multiple peril (CMP) and reinsurance lines of business. The life companies are primarily engaged in individual life insurance and annuity business. The State Farm group also provides banking products and makes mutual funds available through affiliated companies. State Farm provides insurance and financial services products across nearly 83 million policies and accounts.

Auto – The State Farm auto insurance business represented 65 percent of the P-C companies’ combined net written premium. Earned premium was $42.7 billion. Incurred claims and loss adjustment expenses were $31.2 billion and all other underwriting expenses totaled $10.4 billion. The underwriting gain was $1.1 billion.

Comparable 2017 figures were: earned premium, $41.6 billion; incurred claims and loss adjustment expenses, $34.2 billion; all other underwriting expenses, $10.2 billion; underwriting loss, $2.8 billion.

Homeowners, CMP, Other – The net written premium for State Farm’s remaining P-C business represented 34 percent of the P-C companies’ combined net written premium. Earned premium was $21.6 billion. Incurred claims and loss adjustment expenses were $15.0 billion and all other underwriting expenses totaled $5.7 billion. The underwriting gain was $928 million.

Comparable 2017 figures were: earned premium, $21.4 billion; incurred claims and loss adjustment expenses, $18.6 billion; all other underwriting expenses, $5.6 billion; underwriting loss, $2.8 billion.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $91 million, excluding the change in the premium deficiency reserve. Net written premium was $703 million.

Comparable figures for 2017 were: underwriting loss, $71 million; net written premium, $691 million.

Life – In 2018, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.4 billion and $577 million in dividends to policyholders. Net income for 2018 was $706 million. There was $926.7 billion in total life insurance in force at the end of 2018.

Comparable 2017 figures were: premium income, $5.3 billion; dividends to policyholders, $578 million; net income, $492 million; total life insurance in force, $901.7 billion.

State Farm Bank^® – Net income in 2018 was $35 million and total assets for State Farm Bank, F.S.B. were $16.9 billion as of year-end 2018.

Comparable figures for 2017 were: net loss, $1 million; total assets, $16.7 billion.

Investment Planning Services – Total assets under management for the Investment Planning Services operation at the end of 2018 were $10.7 billion, compared with $13.0 billion at the end of 2017. State Farm VP Management Corp. and State Farm Investment Management Corp. reported combined net income of $7 million in 2018, following net income of $5 million in 2017.

Although financial information is presented on a group/line of business basis, State Farm Mutual Automobile Insurance Company and each of its affiliates must meet solvency and regulatory requirements on an individual entity-by-entity basis without regard to the solvency or financial condition of any other affiliated entity.

State Farm Bank, Bloomington, Illinois, is a Member FDIC and an Equal Housing Lender. Insurance and securities products offered by affiliated companies of State Farm Bank are not FDIC insured, are not guaranteed by State Farm Bank and are subject to investment risk, including possible loss of principal invested.

Securities distributed by State Farm VP Management Corp.

State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products. Neither State Farm nor its agents provide investment, tax, or legal advice.

“I wore a uniform for 20 years,” said Ben. “Served in the military, with law enforcement, then got my technician certification and went to work in the heating, ventilation, and air conditioning (HVAC) industry.”

Ben says his past experiences taught him the value of working hard while helping others – factors that inspired him to start his own heating and cooling company.

“It’s called All Care Comfort Solutions,” he smiled. “Texas gets pretty hot, so it’s important air conditioners work!”

But sweltering heat isn’t the only weather condition common in Texas. The state also gets its fair share of storms.

“We had a hail storm come through and my work vehicle was in its path,” said Ben. “I had to make a claim on it. But just to get simple claim for my truck was a real chore.”

Before a frustrating situation got worse, Ben met another small business owner: State Farm agent Brian Llewellyn.

“Brian and I do charity work in the community, which is how we crossed paths,” Ben explained. “I started seeing Brian at all sorts of local functions and told him, ‘Gee, we should start riding in the same car!’”

“Ben and I struck up a conversation and I invited him to my office to evaluate his current policies,” said Brian. “As a small business owner myself, I understand the importance of proper protection.”

Prior to becoming a State Farm agent, Brian worked on the State Farm Catastrophe Team – traveling across the country to help customers affected by hurricanes, wildfires, ice storms and tornadoes.

“I worked with many small business owners,” said Brian. “After suffering a devastating loss, they knew it was critical to keep the doors open. In the end, it’s not just the small business owner who’s impacted…their employees, their customers and their neighbors are affected too. Having the right insurance coverage is essential so a business can survive.”

Helping Life Go Right

Shortly after speaking with Brian, Ben met him at his office. While reviewing his policies, Brian discovered a big gap:

Ben had insurance on his work truck, but did not have coverage for the items inside it.

“I was shocked,” said Ben. “I didn’t realize if my vehicle was burglarized and everything was stolen – I would not be covered. My truck carries expensive equipment. Refrigerant parts, hand tools, power tools, pumps, gauges, manifolds, testing supplies. It’s upwards of $10,000 dollars.”

Ben decided to make a change.

“I got a Business Personal Property Policy and switched my coverage to Brian. No kidding, if my equipment was taken and I didn’t have coverage…things could turn upside down real quick. I’ve worked too hard to lose it all. That’s why I chose to work with someone I trust.”

“There’s something about the small business community – we know what’s on the line, the struggles, the challenges and the 24/7 on-the-go lifestyle,” added Brian. “It’s important to support small business owners and make sure they have what they need to be successful.”

Today, Ben has peace of mind knowing he’s protected. And, he’s offering three pieces of advice to small business owners, and anyone considering opening their own shop:

“Working with Brian is one of the best decisions I’ve made,” said Ben. “After all, the greatest insurance is the kind you don’t have to worry about. It does its job and you can do yours. Being with State Farm means I know I’m secure.”

“We could not be more thrilled about the relationship we are building with State Farm and their dedicated agents,” said Barry Stowe, chief executive officer of Jackson Holdings LLC. “Jackson and State Farm are both committed to helping consumers prepare for the risks they may face in life, and that includes increasing their readiness for life after work. We have been serving customers for more than 150 years combined. We look forward to working together to provide quality products to consumers who want and need to protect their financial futures.”

Although State Farm has traditionally offered fixed annuity products, the addition of a select group of Jackson’s industry-leading variable and fixed index annuities will allow authorized State Farm agents to introduce a more robust suite of annuity products to consumers.

“Our goal is to help people live life confidently, and an important component of that is helping people grow their savings, then position those savings to last a lifetime,” said Joe Monk, senior vice president, Financial Services for State Farm “As a top provider of annuities in the country, Jackson brings a proven track record of strong product offerings, solid risk management, consistent financial strength and award-winning service. The addition of these annuity products positions State Farm agents to help customers in more ways.”

Jackson and State Farm are both members of the Alliance for Lifetime Income, a nonprofit 501(c)(6) organization formed and supported by 24 of the nation’s leading financial services organizations to create awareness and educate consumers and financial professionals about the importance of protected lifetime income.

“As a founding member and current co-chair of the Alliance, we believe it is critically important for our industry to work together to solve a significantly pressing social issue — millions of Americans are retiring every year without adequate financial security, and they are genuinely concerned about outliving their savings,” Stowe said. “This new relationship with State Farm is a prime example of how collaborating with others in our space, particularly those who share the same vision to alleviate our country’s retirement crisis, can increase Americans’ access to critical products that can help protect their income for as long as they live.”

The State Farm 529 Savings Plan is one of four college savings plans offered by the Nebraska Educational Savings Trust (NEST 529), Nebraska’s state-sponsored, tax-advantaged 529 college savings program. Treasurer Stenberg is Trustee of NEST. The other plans are NEST Direct College Savings Plan, NEST Advisor College Savings Plan, and TD Ameritrade 529 College Savings Plan.

Effective today, State Farm 529 Savings Plan updates include reduced expenses for Plan participants, as well as new investment options and underlying funds.

The Plan’s investment options include the following:

• Age-Based Investment Option. Includes allocations among equity, fixed income, and cash equivalent funds. Contributions are placed in a portfolio according to the child’s age, with an asset allocation that best corresponds to the number of years until college. As the child gets close to college, the allocations become more conservative. The new expenses for Plan participants range from 0.57 percent to 0.61 percent. Formerly they ranged from 0.81 percent to 1.28 percent.
• Static Investment Options. All Equity, Growth, Moderate Growth, Balanced, Conservative, Money Market, and Bank Savings (FDIC-insured) options offer fixed allocations to underlying funds throughout the life of the investments. The new expenses for Plan participants range from 0.20 percent to 0.61 percent. Formerly expenses ranged from 0.38 percent to 1.28 percent.

“These new options will help even more families maximize their savings to prepare for the costs of higher education,” Treasurer Stenberg said. “We look forward to helping our account owners plan for the future educational needs of their children and grandchildren.”

“We are confident account owners will be pleased with the new 529 Plan with lower prices, enhanced investments, and new rewards programs that First National Bank brings to its new role with the State Farm 529 Savings Plan,” said Deborah Goodkin, Managing Director, Savings Plans, First National Bank of Omaha. “Affordable, tax advantaged, and with diversified investment options, the updated Plan allows State Farm registered agents to help customers make higher education attainable.”

“We’re excited about the opportunity to help families across America with their education savings needs,” said Lisa Stewart, Vice President – Life, Health & Investment Planning Services, State Farm. “With the partnership of First National and the State of Nebraska, State Farm agents can help customers make those dreams a reality.”

The changes will not affect the tax status of the State Farm 529 Savings Plan and do not count towards the account owner’s twice-a-year limit to change investment options.

*****

An investor should consider the Plan’s investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement available at www.statefarm.com contains more information, and should be read carefully before investing. AP2018/07/0910

Investors should consider before investing whether their or their beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program and should consult their tax advisor, attorney and/or other advisor regarding their specific legal, investment or tax situation.

State Farm VP Management Corp. is a separate entity from those State Farm entities that provide banking and insurance products. Neither State Farm nor its agents provide tax or legal advice.

Investments Are Not FDIC Insured* · No Bank, State or Federal Guarantee · May Lose Value*Except the Bank Savings Static Investment Option

The net worth for the State Farm group ended the year at $97.0 billion compared with $87.6 billion at year-end 2016. The increase was primarily due to an increase in the value of the P-C companies’ unaffiliated stock portfolio. Valuation updates for deferred tax assets and liabilities determined using the corporate tax rate enacted as part of the U.S. Tax Cuts and Jobs Act also increased net worth for the group.

“In 2017, State Farm helped our customers recover from unexpected losses, including several catastrophic events. While we had operating losses for the year, we are built to handle these events and we continue to be ‘good neighbors’ and have the financial resources to be there in our customers’ time of need,“ said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney. “Our employees, agents and agent team members are making significant changes and process improvements across our company to better serve our customers. We will continue becoming a leaner and stronger company in our pursuit of helping customers recover from the unexpected and being there to help life go right.”

Total revenue, which includes premium revenue, earned investment income, and realized capital gains (losses) was $78.3 billion for 2017 compared to $76.1 billion for 2016. State Farm reported net income of $2.2 billion in 2017, compared to $0.4 billion of net income in 2016. The State Farm insurance operations consist of eleven P-C companies and two life companies, each of which is managed on an individual affiliate level. The P-C companies are primarily engaged in automobile, health, homeowners, commercial multiple peril (CMP), and reinsurance lines of business. The life companies are primarily engaged in individual life insurance and annuity business. The State Farm group also provides banking products and mutual funds through affiliated companies. State Farm provides insurance and financial services products across more than 83 million policies and accounts.

Auto – The State Farm auto insurance business represented 65 percent of the P-C companies’ combined net written premium. Earned premium was $41.6 billion. Incurred claims and loss adjustment expenses were $34.2 billion and all other underwriting expenses totaled $10.2 billion. The underwriting loss was $2.8 billion.

Comparable 2016 figures were: earned premium, $38.8 billion; incurred claims and loss adjustment expenses, $35.8 billion; all other underwriting expenses, $10.0 billion; underwriting loss, $7.0 billion.

Homeowners, CMP, Other – The net written premium for State Farm’s remaining P-C business represented 33 percent of the P-C companies’ combined net written premium. Earned premium was $21.4 billion. Incurred claims and loss adjustment expenses were $18.6 billion and all other underwriting expenses totaled $5.6 billon. The underwriting loss was $2.8 billion.

Comparable 2016 figures were: earned premium, $22.1 billion; incurred claims and loss adjustment expenses, $14.4 billion; all other underwriting expenses, $5.7 billion; underwriting gain, $2.0 billion.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $71 million, excluding premium deficiency reserve. Net written premium was $691 million.

Comparable figures for 2016 were: underwriting loss, $84 million; net written premium, $668 million.

Life – In 2017, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.3 billion and $578 million in dividends to policyholders. Net income for 2017 was $492 million. There was $901.7 billion in total life insurance in force at the end of 2017.

Comparable 2016 figures were: premium income, $5.7 billion; dividends to policyholders, $584 million; net income, $562 million; total life insurance in force, $873.7 billion.

State Farm Bank^® – Net loss in 2017 was $1 million and total assets for State Farm Bank, F.S.B. were $16.7 billion as of year-end 2017.

Comparable figures for 2016 were: net income, $39 million; total assets, $18.3 billion.

Mutual Funds – Total assets under management for the retail Mutual Fund operations at the end of 2017 were $13.0 billion, compared with $12.2 billion at the end of 2016. State Farm VP Management Corp. and State Farm Investment Management Corp. reported combined net income of $6 million in 2017, following net income of $4 million in 2016.

________________________________________________________________________________________________

^{Although financial information is presented on a group/line of business basis, State Farm Mutual Automobile Insurance Company and each of its affiliates must meet solvency and regulatory requirements on an individual entity-by-entity basis without regard to the solvency or financial condition of any other affiliated entity.}

^{State Farm Bank, Bloomington, Illinois, is a Member FDIC and an Equal Housing Lender. Insurance and securities products offered by affiliated companies of State Farm Bank are not FDIC insured, are not guaranteed by State Farm Bank and are subject to investment risk, including possible loss of principal invested.}

^{Securities issued by State Farm VP Management Corp. For more information, call 800-447-4930.}

^{State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products. Neither State Farm nor its agents provide investment, tax, or legal advice.}

Hover over the blue plus signs in the interactive image below for tips on password safety.

REMEMBER:

• Don't share your passwords with anyone.
• Use different passwords for different accounts.
• Choose a password that's easy for you to remember, but difficult for others to guess.
• Don't use a word found in a dictionary.
• Use letters, special characters/symbols, but don't repeat the same character three times in a row.
• Don't use the name of your spouse, children, or pets.
• Don't use common dates, including your birthday, anniversary, etc. 
• Don’t use strings of letters/characters/symbols found on your keyboard such as 1234567 or qwerty.

For many Americans, the ability to earn a paycheck is their most valuable asset. Anyone who works needs to have a plan in place to help protect their paycheck. If they don't, they could be putting their financial future at risk.

May is Disability Insurance Awareness Month (DIAM), and according to a National Underwriter study, at age 40 your chances of becoming disabled for 90 days or more prior to age 65 is 43%. Disability insurance helps to address the concern around maintaining one’s standard of living in case of illness or injury.

Guest Blog by Linda McMahon, SBA Administrator

Once upon a time….

It’s the classic opening to some of our favorite fairy tales. As children we dream of magic potions and knights in shining armor that will provide our happily ever after. How were we to know that our own hard work, skill and determination could be far more effective?

Once upon a time, my husband and I started our business sharing a desk. As he developed our product and expanded our markets, I managed the books. When the work became too much for the two of us to handle ourselves, we hired our first employee. As our business grew, we hired another. Then another. Over decades of hard work growing our business, the company we created now has grown to a publicly traded enterprise with more than 800 employees and consumers in 180 countries worldwide.

As an entrepreneur, I have truly lived the American Dream: the classic tale of taking a risk on an idea, working hard and creating something from nothing. Don’t get me wrong – we had plenty of stumbles and challenges providing the plot twists along the way. But it’s a story I am always proud to tell.

And as head of the U.S. Small Business Administration, my goal now is to help more people have the opportunity to live the American Dream.

Yet many aspiring entrepreneurs have no idea how to get their stories started or write their next chapters.

The SBA is here to help, with resources both online and in communities from coast to coast.

During National Small Business Week, as we celebrate the 28 million small businesses that drive our nation’s economy, we also showcase the resources and services the SBA provides to entrepreneurs at every stage. Whether they are starting up, expanding or getting through a tough time.

The SBA has 68 district offices and an extensive network of resource partners across America, including Puerto Rico, the U.S. Virgin Islands, and Guam. The experienced professionals staffing these offices offer a core group of services that we call the “three Cs and a D” – capital access, counseling, contracts, and disaster assistance.

Many entrepreneurs need capital to start or expand their small business. This includes combining what they have with other sources of financing. While the SBA doesn't loan money directly to small business owners, it helps facilitate loans with a guaranty that a certain portion will be repaid. We offer counseling on starting, scaling and succeeding in business, from how to draft a business plan to how to export your product overseas. And we train small businesses on how to compete for government contracts, especially those set aside exclusively for small business owners. Finally, SBA provides a helping hand to small businesses recovering from disasters.

As I think back on my own story as a small business owner, I wonder how much easier things might have been if we’d been aware of the many valuable services SBA provides. My hope is that as more people learn about the SBA, they will have the confidence, skills and resources they need to succeed as small business owners. Then we can continue to revitalize a spirit of entrepreneurship in our country.

There’s room for far more success stories in our library.

And the SBA can help more entrepreneurs write their own “happily ever after.”

“Our focus of putting customers first for nearly 95 years continues to underscore our position as the leader in auto and home insurance and a leader in individual life insurance. Our financial strength, local presence and broad product offerings allow us to help customers recover from the unexpected and be there to help life go right,” said Senior Vice President, Treasurer and Chief Financial Officer Jon Farney.

Total revenue, which includes premium revenue, earned investment income, and realized capital gains (losses) was $76.1 billion for 2016 compared with $75.7 billion for 2015. State Farm reported net income of $0.4 billion in 2016, compared with $6.2 billion of net income in 2015. Results in 2015 included $3.0 billion in realized capital gains due to two corporate mergers impacting stocks owned within the unaffiliated stock portfolio.

Financial results for the State Farm affiliated companies are incorporated in the State Farm group’s financial results. The State Farm insurance operations consist of ten P-C insurers and two life insurers, each of which is managed on an individual affiliate level. The P-C insurers are primarily engaged in automobile, health, homeowners, commercial multiple peril (CMP), and reinsurance lines of business. The life insurers are primarily engaged in individual life insurance and annuity business. The State Farm group also provides banking products and mutual funds through affiliated companies. State Farm provides insurance and financial services products across more than 84 million policies and accounts.

Auto – The State Farm auto insurance business represented 63 percent of the P-C companies’ combined net written premium. Earned premium was $38.8 billion, an increase of 6.9 percent from 2015. Incurred claims and loss adjustment expenses were $35.8 billion. The underwriting loss was $7.0 billion.

Comparable 2015 figures were: earned premium, $36.3 billion; incurred claims and loss adjustment expenses, $31.0 billion; underwriting loss, $4.4 billion.

Homeowners, CMP, Other – The net written premium for State Farm Fire and Casualty Company, State Farm Lloyds, State Farm General Insurance Company and State Farm Florida Insurance Company represented 33 percent of the P-C companies’ combined net written premium. Earned premium was $20.4 billion, an increase of 2.7 percent from 2015. Incurred claims and loss adjustment expenses were $13.3 billion. The underwriting gain was $1.6 billion.

Comparable 2015 figures were: earned premium, $19.9 billion; incurred claims and loss adjustment expenses, $12.2 billion; underwriting gain, $2.1 billion.

Health – The individual health insurance operations for State Farm Mutual Automobile Insurance Company reported an underwriting loss of $84 million, excluding premium deficiency reserve. Net written premium was $668 million.

Comparable figures for 2015 were: underwriting loss, $98 million; net written premium, $667 million.

Life – In 2016, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $5.7 billion and $584 million in dividends to policyholders. Net income for 2016 was $562 million. There was $873.7 billion in total life insurance in force at the end of 2016.

Comparable 2015 figures were: premium income, $5.5 billion; dividends to policyholders, $582 million; net income, $667 million; total life insurance in force, $844.8 billion.

State Farm Bank^™ – Net income in 2016 was $39 million and total assets for State Farm Bank, F.S.B. were $18.3 billion as of year-end 2016. Comparable figures for 2015 were: net income, $45 million; total assets, $16.7 billion.

Mutual Funds – Total assets under management for the retail Mutual Fund operations at the end of 2016 were $12.2 billion, compared with $11.3 billion at the end of 2015. State Farm VP Management Corp. and State Farm Investment Management Corp. reported combined net income of $4 million in 2016, following net income of $12 million in 2015.

Solo performer and author Sabrina Lamb heard this question at a financial planning seminar. She conducted a little research and learned the answer was a definitive ‘no’. Understanding the problems a lack of financial education causes, Sabrina jumped into action. Leveraging her background, experience, and love of children, she created, World of Money, in 2005.

World of Money (WOM) is a New York City-based non-profit whose mission is to empower youth through the engaged, local delivery of professional quality financial education.

With Sabrina’s leadership and State Farm financial support, WOM has strengthened its commitment to providing children and families day-to-day tools for enhancing their financial capability.

Since 2005, more than 3,000 youth, ages seven to 18, have received the necessary financial foundation to break a generational cycle of poverty. WOM helps to change the way youth view money by equipping them with the tenets for a financially responsible and philanthropic life: learn, earn, invest and donate.

“Our main goal is to enhance the lives of underrepresented children and young adults in the immediate New York City area,” shared Sabrina.

Sabrina took a chance, rejected the status quo and followed her heart. Now her life reflects her passion for helping and empowering youth. She is a Dream Achiever.

The High School for the Recording Arts (HSRA) aka “Hip Hop High School” in St. Paul, Minnesota lives and breathes this concept. With financial help from State Farm, they know how to motivate students through music. They use music to teach the basics - reading, writing and math - allowing kids to better understand.

It all starts like any other classroom, textbooks and studying. But instead of a test, students take the lessons and write music about it. Students get studio time in the school’s state of the art facility keeping them focused on learning.

HRSA students recently took courses about budgets, credit cards and how to save for the future from the nonprofit, Make a Difference.

The HRSA youth took what they learned and created music to share their knowledge with their peers. The songs not only shared important financial tips, but are a fun, unique way to learn.

Challenging students to channel their passions into something positive can lead to amazing results. Listening to the songs, you wouldn’t guess kids ages 17-21, were the writers, talent and producers. Click here to listen to their tracks.

Make a Difference Wisconsin and Junior Achievement of the Upper Midwest plan to weave these songs into their classrooms. These songs will bring new energy to financial literacy classes and events.

“As an organization that teaches kids financial literacy, the songs created by these talented young people bring a freshness and relevancy to this important topic that will help us educate and inspire the next generation,” Ryan Stauff, Vice President of Corporate development from Junior Achievement of the Upper Midwest shared.

These students are using their passions to learn important concepts. And their songs are inspiring and engaging other teens with their messages too.

How are our family finances? Did we stay within budget? If you are like most Americans, conversations about these important money matters probably don’t come up. What if they did?

While most individuals believe we should talk about money, most don’t. According to the American Psychological Association, 95 percent of people believe parents should talk to their kids about money. However, only about two-thirds say they were taught how to manage money, and just one-third report talking with their family about the subject.

Working Together: Organizations and Families Work as a Team

In the foothills of South Carolina’s Blue Ridge Mountains, two organizations are empowering parents and children to have those money conversations. Families are tackling their finances together and benefitting. The result is reducing inter-generational poverty.

The Greenville County Human Relations Commission (GCHRC) found many adults were unable to complete their financial education workshops due to lack of childcare. The Children’s Museum of the Upstate was presenting a children’s program on basic financial literacy. They teamed up to create the “Finances for the Family” program for a win-win.

The six-session program educates parents and children at the same time. Each organization uses their expertise to address different financial situations.

Take the budgeting session for example. While parents work with financial counselors to set a household budget, their children “shop” in the museum grocery store staying within an assigned budget. The families then come back together for more activities to reinforce the lesson and promote positive conversations about money.

“It is empowering to myself, as well as my children. Because of the program, my kids are now saving for two reasons: their future and their own personal goals. I could go on non-stop for days about the wonders of this class and how beneficial it is to my family. But, instead, I will just say this: Thank You for the time you took to give my family hope for our financial future”

- Finances for the Family participant, and Mother of 3 children

Visible Success Spawns Future Interest

State Farm has supported the pilot since it began in the fall of 2014. Since then, 41 families have graduated from the program. Interest in upcoming classes has doubled.

Graduation from the program is just the beginning. Families can then access more financial counseling that supports their long-term financial goals. To help them start, each family receives a $50 certificate for initial deposit into their choice of either a 529 college savings account or an Individual Development Account; a $40 deposit into a custodial savings account for each child in the family; and an annual pass to the Children’s Museum. Each child receives a $5 bill as a graduation gift and is encouraged to practice their new money management skills.

Individual follow-ups with the families show parents and children thriving with their newly acquired financial management skills and knowledge.

“We’re no longer classified as a paycheck to paycheck family. Now there’s a peace about it,” said Jennifer Byrd. “It’s exciting to know my money is where it’s supposed to be. It’s going to keep us where we need to be. And, if ‘life happens’ we have a little bit of a bounce-back.”