When Christine Lopez woke up Wednesday, Oct. 26, 2011, she didn’t expect the day to be so life-changing; literally upside down.

It started as a nearly perfect day in East Los Angeles. The sun was shining, a light breeze, barely a cloud in the sky. Christine and her five-year-old Leilani spent most of the morning looking for a special gift at the mall.

Around one o’clock in the afternoon, Christine decided it was time to head home. With Leilani buckled into her car seat enjoying a snack, she got behind the wheel of her SUV. She queued up Leilani’s favorite playlist, and headed for the nearest intersection.

The mother and daughter laughed and sang along to the music while waiting for the traffic light to turn green. When it finally did, Christine lifted her foot off the brake pedal, started to make a left turn — and then it happened…

In the blink of an eye, Christine’s wonderful day turned into a nightmare. A vehicle ran the red light and broadsided the Lopez family at 40 miles per hour. The smaller gas-electric hybrid impacted the SUV’s rear passenger side door and quarter panel, causing it to spin around several times and ultimately flip over.

When the glass, metal, and plastic stopped flying and the dust settled, they were upside down and facing the wrong way in oncoming traffic on a heavily-traveled street.

“I must have lost consciousness for a moment or two, but once I came around, Leilani was all I could think about,” Christine recalled. “I was upside down, and the car was eerily silent. I was afraid to look back. But when I did, I saw my daughter’s smiling face staring back at me. She was also hanging upside down in her car seat — safe and sound — giggling, ‘I’m upside down, mommy. Wheeee. That was fun,’ just like she had just been on an amusement park ride or something.”

Montebello Police Officer Oscar Chavez was the first emergency responder to reach the crash site and was surprised to find no one seriously hurt.

"Not many people walk-away from such a wreck unscathed. Whenever there’s an overturned vehicle or car on its side, we expect the worst, often finding a severely injured person or persons inside the vehicle,” shared Officer Chavez. “But that wasn’t the case here. We don’t normally see a motorist involved in this serious of a collision walk away without a scratch, especially a child. It was amazing, and says a lot about proper use of restraints.”

Most would say Christine and her daughter were lucky, that fate was on their side that day. But Christine was also smart. Had she not been practicing what she learned from a child passenger safety seat inspection undergone a few days prior, the outcome could’ve been much different.

Just four days before and at the urging of a close friend in the California Highway Patrol, Christine decided to attend a child passenger safety/safety seat inspection event in her neighborhood sponsored by State Farm®.

Ninety-six percent of parents like Christine, roll up to an inspection station confident that the seats protecting their kids are installed and being used correctly.

Fajardo says most people don’t. “Some seats get passed down from kid to kid, borrowed from family members, or purchased at second hand stores, yard sales or thrift stores,” she explained. “We don’t recommended secondhand seats because you never know what you’re going to get. The effects of wear and tear or other environmental factors over the years could’ve compromised the straps, plastic, or locking mechanisms.”

During the inspection, Fajardo made one other change: she moved Leilani’s seat from the passenger side to the center of the back seat.

While sitting in the middle isn’t a safety requirement, it worked for Christine since Leilani was generally the only rear seat passenger – and as luck would have it, this was the reason Leilani wasn’t sitting by the door that was struck four days later.

After the evaluation was complete, Christine was a bit frustrated but grateful. Officer Fajardo replaced her expired booster seat with a smaller safety seat with a five point harness. Then, taught Christine how to install it and how to properly restrain Leilani in it.

“It was intense and humbling, learning that I was putting my daughter at risk,” admits Christine.

While the child safety seat played a pivotal role for Leilani, it wasn’t the only passenger safety restraint at work in this case. The seat belt and airbags played critical roles, too. It quite possibly saved Christine’s life.

It’s been ten years since Christine and Leilani dangled upside down on Montebello Boulevard.

While the physical bumps and bruises have all healed, the memories still linger.

“Every time we drive by that intersection, Leilani says, ‘Remember what happened here, Mommy?’ I say, ‘How can I forget, baby.’”

Leilani, now almost sixteen, like many teens, has no urge to drive herself. She’s more than content letting her mom stay behind the wheel.

Christine still wonders what could have happened if she had stayed in bed on October 22, rather than go to the child seat inspection.

“What if Leilani’s seat hadn’t been replaced?” wonders Christine. “What if her seat was anchored in the passenger side rear seat at the time of the collision? What if I hadn’t buckled up properly? Would we still be alive?”

What if, indeed.

Like a good neighbor, State Farm is there. It's more than a slogan; it's who we are.

For the past 100 years, we've made it our mission to restore lives, help rebuild neighborhoods, invest in communities, and support education and safety initiatives – like car seat safety - where we live and work. It's what being a good neighbor is all about. 

Corey is a volunteer Wish Granter for the Make-A-Wish Foundation, the famous non-profit organization that helps chronically and critically ill children live out their dreams.

“Hope is contagious,” says Corey, a truly amazing Good Neighbor and State Farm director. “By giving these kids something to look forward to, we’re helping take their minds off of their illness, even if it’s only for a little while.”

State Farm and 1871, a Chicago-based non-profit that supports entrepreneurs, teamed up to sponsor and organize the “Hackathon for Good.” The event benefited the technical needs of True Star Foundation, a Chicagoland youth non-profit. 

“The Hackathon for Good gave us a glimpse into the future. It provided technology solutions that allow the organization to operate at a higher level, engage youth in ways that excite and inspire them, and allow us to reach more young people in a cost effective way,” said True Star Foundation Co-Founder DeAnna Sherman.

True Star's weekly after-school, in-school and summer programming teaches students about a variety of disciplines in the media industry. Students not only learn about the profession, they actually work cooperatively to produce professional-quality work in each area.

The hackathon teams provided True Star with several technical solutions. These included digitizing its curriculum, helping its students create digital portfolios, and providing the organization with a blueprint for a mobile app that will extend their reach and mission.

It’s all part of a commitment to build a better future for our communities through innovation.

“State Farm believes in supporting our communities, in being a Good Neighbor. We were excited to be part of the Hackathon for Good with 1871 and to support True Star Foundation,” said Fawad Ahmad, State Farm Senior Vice President and Chief Digital Officer. “It was a great opportunity to observe innovative ideas that will ultimately benefit the students True Star serves.”

“At 1871, we support innovators that are building a better tomorrow for their communities,” said 1871 CEO Betsy Ziegler. “Organizations like the True Star Foundation are doing the necessary, on-the-ground work to empower youth in Chicago to lead. We were proud to join our longtime and dedicated partner State Farm to create technical solutions for this important non-profit.”

The physical Good Neighbor Center is located at our Corporate Headquarters in Bloomington, Ill., and it is open to employees, agents and the general public. It offers an immersive and interactive experience that takes visitors through our journey. This website is the digital representative of that experience. We hope you enjoy! 

“We’re thrilled this strategic alliance will position State Farm agents to help customers protect their classic vehicles while giving them an opportunity to connect with a community of car enthusiasts,” said Rand Harbert, State Farm Executive Vice President and Chief Agency, Sales & Marketing Officer. 

Hagerty is an automotive lifestyle brand and a leading provider of specialty insurance for classic, vintage and enthusiast vehicles. The company is known for its outstanding service and for its breadth of knowledge about collector vehicles.

“We are especially pleased to offer State Farm Classic+ customers access to popular Hagerty features and services,” said McKeel Hagerty, CEO of Hagerty.  “We are excited to work with State Farm and their incredible agents.”

The State Farm Classic+ policy will be offered through State Farm Classic Insurance Company, a new wholly owned subsidiary of State Farm Mutual Automobile Insurance Company, and may be subject to state regulatory review and approval. This policy will be available to new and existing customers through their State Farm agent.

State Farm Classic+ is expected to be available in most states in 2023.

The agreement also establishes a pathway for State Farm employees to transfer prior learning assessment (PLA) credits into the baccalaureate degree program at Lincoln College.

The PLA credits are awarded by Heartland for workplace training programs completed by State Farm Customer Care Center (CCC) employees. The credit recognizes learning that is completed outside of the classroom and can allow a student to enroll in more advanced courses without some prerequisites. Lincoln College will accept PLA credit toward a bachelor’s degree for transfer students, ensuring a smooth transition from HCC to Lincoln College for students utilizing PLA credit.

The agreement was announced and signed during the June Board of Trustees meeting at Heartland Community College. The CCC College Credit program is currently only available to CCC employees in Phoenix and now Bloomington. State Farm is working to expand the program in the Dallas and Atlanta hub locations.

“These free college credits for State Farm CCC employees are a win-win,” said Steve Florence, CCC assistant vice president. “At State Farm, our employees’ education and professional development is very important to us. After meeting eligibility criteria, employees may earn college credits for training they took while working. This saves them time, money, and can jump-start their college career.”

In the News:

Pantagraph - Watch now: Heartland, Lincoln College, State Farm enter agreements (6/15/21)

Lincoln Courier - Two local colleges have new agreement with State Farm (6/15/21)

WRPW-FM 92.9 - Lincoln College and Heartland Community College Announce New Articulation (6/15/21)

WHOI-TV - Heartland Community College, Lincoln College announce new partnership (6/15/21)

Herald & Review - Watch now: Heartland, Lincoln College sign agreement (6/15/21)

To put it in perspective, in 2019 State Farm received around 6,000 claims from named storms, totaling approximately $26 million. In 2020, claims filed neared 163,000 and exceeded $1.9 billion in cost.

Total Claims Paid | Home & Auto

1. Louisiana $1.3 billion
2. Alabama $165 million
3. Georgia $94 million
4. New York $64 million
5. Texas $45 million

Hurricanes cause destruction to homes, communities, and lives. It is important to plan and prepare best you can for hurricane season with an evacuation plan, updating insurance documents, and ready-to-go emergency kits.

• How to create a home inventory
• Preparing for a hurricane
• FAQs following a hurricane

In 2020, Labs @State Farm began partnering with Whisker Labs and offering Ting devices to eligible customers in Arizona, California and Texas. As a result, over 40,000 devices were provided to customers resulting in numerous success stories and, in many cases, fire loss prevention. Some of these preventive detections included sensing clear arcing signals isolated to a chandelier in a master bathroom, identifying a missing neutral connection in a sub-panel, and detecting arcing signals consistent with water interaction with an electrical system.

What you need to know

We are now ready to expand the offering of Ting to more State Farm customers. Through 2021 and 2022, State Farm will begin offering an additional 100,000 Ting devices to non-tenant homeowner policyholders in more states. We will begin marketing to qualified policyholders in Ohio on May 18 (additional states and dates are yet to be determined, while Ting continues to be available in Arizona, California and Texas).

Qualified customers who enroll will receive:

• Free Ting sensor with mobile app access
• Pay no annual service fees for three years (fees paid by State Farm)
• Receive $1,000 credit toward remediation of electrical fire hazards (provided by Whisker Labs) 

Eligible policyholders will receive a targeted marketing email from their State Farm agent when the opportunity is available to participate in the Ting program.

“State Farm is committed to fire safety and providing customers the newest fire safety technology. We’re excited about the expansion of the Ting sensor program. Now, even more homeowners can have the peace of mind that they’re doing everything possible to protect one of their most valuable assets,” says Chris Schell, Senior Vice President – Property & Casualty. ““We have found our customers love how simple it is to install and really appreciate the app keeping them informed.”

How does Ting Work?

Ting monitors the electrical network of a home using a smart plug-in sensor to help detect hazards, so they can be fixed before they have a chance to ignite a fire. The main precursors to electrical fires, micro-arcs and sparks that develop, happen in faulty wires, loose connections and faulty appliances or devices. These signs usually develop over weeks and months, so Ting is designed to provide you with advanced warnings to address these hazards prior to the hazard starting an electrical fire.^[1] Check out this video on how Ting works.

Ting may also help detect electrical faults in the utility grid that could damage your home and potentially trigger wildfires.

"The Whisker Labs Ting team is very proud to support State Farm Insurance in this important initiative. We are committed to helping protect State Farm customers by monitoring the electricity that we all rely on for virtually everything in our lives today," said Bob Marshall, Co-Founder & CEO of Whisker Labs. “It is incredibly gratifying each time Ting helps identify an electrical fault, mitigate the hazard and prevent a fire from developing."

ADDITIONAL RESOURCES:

• Simple Insights Article
• Household Electrical Hazards
• Smart Home and Smart Grid: Whisker Labs Announces A Significant Milestone for Both

With Digital Pay, State Farm customers will now have greater flexibility in how they receive approved and reviewed auto and fire claims payments. This technology will give State Farm the ability to digitally disperse qualifying claims payments. In turn, our customers will have the ability to choose a payment method that best suits their needs. State Farm began an incremental deployment of payout technology in February to test and tune the payment option.

Leveraging Fiserv technology, State Farm will be able to distribute reviewed and approved claim payments into customer accounts quickly and securely.

Some of the options and benefits of Digital Pay include:

• Increased speed of payment delivery
• Customer choice of payment delivery options
• Streamlined enrollment processes
• Simplified customer communications

“We believe this new capability will support our goal to personalize the customer experience and help more people in more ways,” said Schuyler Schupbach, Vice President of Property & Casualty Claims at State Farm. “As an industry leader, we are committed to ongoing transformation to meet the changing needs and expectations of customers including modernizing our technology. We are excited to introduce digital payment options through Fiserv that will simplify the claims payout process for our customers and provide added convenience.”

At Fiserv, digital payouts are part of the Carat omnichannel commerce ecosystem that securely delivers unlimited payment opportunities across the most popular channels and devices. Through simple API access, Fiserv enables clients like State Farm to easily access pre-integrated solutions – such as payouts – that allow businesses to imagine and realize new customer experiences.

“Carat is helping organizations like State Farm move money and information with the speed, flexibility, and convenience that today’s consumer demands, said Nandan Sheth, head of Carat and Digital Commerce at Fiserv. As businesses look to create positive new consumer experiences, the ability to pay out funds with the same speed and simplicity with which they are paid in can be a significant differentiator.”

In an age of fast-paced technology and the rise of FinTech firms, it is important for insurers and financial institutions to continuously invest, innovate, and evolve. State Farm is a proven innovator and continually encourages change inside and outside the industry. We’re the right company to find solutions for a future inspired by our customers, employees and the communities we serve. We are prepared for today and are always looking into the future.

State Farm® is using technology to help homeowners better prepare and recover from the devastating impact of wildfires. These new tech tools - a sensor, an app, and your smartphone - places the power of preparation in the palm of consumers’ hands. Currently, 4.5 million U.S. homes are identified as being at high risk of wildfire. This makes the technology and wildfire preparation tools even more critical.

Ting

Ting is a plug-in device and smartphone app produced by Whisker Labs, a company specializing in fire safety using advanced technology to monitor electrical systems in the home and on the electrical utility grid.

The device is the size of a plug-in night light and can offer protection from electrical fires. Once plugged into a home electrical outlet, Ting is on the lookout for unique signals that are indicative of an electrical problem that could lead to a home fire. These signals can originate from loose connections, damaged wires or faulty devices and appliances, or from faults on the grid. If Ting detects anything unusual, it sends a notification to the customer’s mobile phone while also notifying the Whisker Labs’ monitoring center.

Electrical fires are responsible for originating 13% of all U.S. home fires, with an annual cost of $1.3 billion (National Fire Protection Association 2019 Survey). That’s an alarming statistic. While Ting can help detect electrical fire hazards in the home, it can also help detect wildfire ignition risks from the grid. The device can detect signals from malfunctions or fluctuations on the grid that indicate the risk of a fault or larger arcing event. A common example is electrical transformers that are typically installed outside the home to reduce the high-voltage supply from the grid into the low-voltage needed for a residence. When transformers work well, we don’t notice them. It’s a different story when they begin to experience issues and fail to operate correctly, or simply fail outright (Ting). These faults can cause safety issues, fire hazards, and damage to devices inside your home or produce sparks that could trigger a wildfire and potentially put other structures at risk.

Last summer, Whisker Labs helped launch a significant distribution program in partnership with State Farm. Eligible State Farm customers in Arizona, California, and Texas received Ting for free by simply enrolling online. In May, Whisker Labs announced 40,000 Ting devices had been distributed. Expansion to more customers in more states is planned in 2021.

IBHS Wildfire Ready App

Living in the era of apps, it is logical that the second new tool in a homeowners’ wildfire mitigation toolbox comes in app form. The Insurance Institute for Business & Home Safety (IBHS) is one of the leading sources in the science of catastrophes. Leveraging their latest research, the goal of their new Wildfire Ready Virtual app is to help homeowners prepare their homes for a wildfire. The app uses augmented reality so that once you point your smartphone at your home, you can “see” the weak points. It also walks you through specific do-it-yourself (DIY) projects, including remodeling tips to make your home more fire resistant.

State Farm participated in the development of this app that you can download and try for yourself anytime (download for Apple or Android phones). Motivated to do even more? Check these extra wildfire protection tips in the IBHS Wildfire Ready Guide.

Home inventory

Unfortunately, there will be instances where despite preparation efforts, a wildfire may destroy your home. Recovering from such a devastating event is difficult but technology can help. This is where the third tech tool, your smartphone, takes center stage. A home inventory can show visual proof of what was in your home before it was damaged or destroyed. To this effect, the storytelling capabilities of today’s smartphones are a great ally.

A simple way to do a home inventory is to walk through each room of your home, taking pictures and videos of everything in it. Don’t forget to also step outside and take images of the structure and everything around it.

Let me introduce you to Mary. In this video she tells us the story of losing her home to a wildfire in Santa Barbara. No one better than her and her agent, Irene, to give us a home inventory 101.

So switch on these tech tools and take your wildfire safety to a whole new level.

On average, the American Red Cross responds to more than 60,000 disasters every year, the vast majority of which are home fires. Home fires are not only the most common disaster, but they are also deadly—claiming seven lives every day. Unlike natural disasters, home fires are largely preventable through fire safety education and preparedness.

Pledge to Prepare consists of two steps:

• Practice a 2-minute fire drill at least twice a year
• Test smoke alarms monthly

The Pledge to Prepare site has a downloadable escape plan worksheet which can help families draw out and plan for escape from each room in the house. The site also has step-by-step instructions on how to test smoke alarms and what to do if smoke alarms are not working.

State Farm paid $2.2 billion on nearly 36,000 claims for home fires in 2020.

“As a company, our mission is to help people manage the risks of everyday life,” said John Burns, Operations Vice President – Fire Claims. “The collaboration between State Farm and American Red Cross on Pledge to Prepare will help spread awareness about steps to diminish the impact of a home fire. It’s another way we are helping communities prepare for the unexpected.”

Please join us by taking the pledge to keep you and your loved ones safe!

To help address the impact of tree loss on communities across the country, State Farm® and the Arbor Day Foundation are announcing a new collaboration to replant trees and help build more resilience in disaster-impacted areas.

State Farm is committing $1 million to the Arbor Day Foundation in support of tree planting and reforestation projects throughout the remainder of 2021.

“Trees play a vital role in the stability of our communities and their resilience against disaster,” said State Farm Vice President of Administrative Services Jenny Greminger, who oversees the company’s environmental sustainability team. “Replanting in a strategic way will help impacted areas recover and potentially better withstand severe weather in the future.”

In consultation with the Arbor Day Foundation, key areas impacted by natural disasters have been identified in fifteen states (Arizona, California, Colorado, Florida, Iowa, Idaho, Maryland, Michigan, North Carolina, New Jersey, New York, Ohio, Oregon, Texas, and Utah). These areas, including several national forests, will host reforestation, tree planting, and tree giveaway events starting this spring and running through the fall.

Specific events will be announced as they are confirmed. Events will address local challenges including losses from wildfires, hurricanes and tornadoes, as well as urban heat islands and emerald ash borer infestation.

This new collaboration follows the recent announcement from State Farm of a commitment to cut its greenhouse gas emissions by 50% by the end of 2030, and the release of the company’s first-ever Environmental, Social, and Governance report. These efforts are the first announced by State Farm as part of its “Good Neighbors. Better World.” initiative, in which the company is emphasizing social and environmental responsibility as essential aspects of doing business.
 

Did You Know? Quick facts on trees from the Arbor Day Foundation

Click the images below to learn more about some of the many benefits of trees for health, the economy, and everyday life.

Total Hail Claims Paid | Home & Auto

1. Texas $474.6M
2. Illinois $394.2M
3. Minnesota $259.2M
4. Missouri $236.9M
5. Colorado $207.9M

Hail can damage roofs, gutters, and windows while denting vehicles and cracking windshields. The average homeowner claim totaled nearly $12,000 and vehicle claims averaged more than $4,300, according to State Farm 2020 hail claims data.

Preparing for 2021

Extreme weather has already brought threats to parts of the country this year, but the threats are not over. Hail generally peaks during spring and summer but can occur any time of year.

What you can do now to prepare will help you weather the storm. Here are some steps to protect your property and family:

• Review insurance coverage: Ask your State Farm agent what-if questions in an insurance review.
• Know the claims process: Should your property be damaged, become familiar with the claims process now
• Be weather aware: Stay connected to forecasts when severe weather threatens.
• Update home inventory: Take pictures and video of your property for a detailed digital record
• Preparation: If there’s time and it’s safe, put vehicles in the garage and move patio furniture under cover. Close your blinds and curtains to prevent broken glass from blowing inside, possibly causing injuries or damage.

Filing a Claim

As with any storm, nature is unpredictable and experiencing damage can be draining.

Document your damage with pictures. If you need to, make temporary repairs to prevent more damage. Take pictures and save the receipts related to the temporary repairs.

• First Steps:
  • Tell us what happened
  • We’ll review your claim and policy to determine what is covered
  • You don’t have to be an insurance expert; we’ll tell you what happens next
  • We'll arrange payment - less your deductible – for covered losses.
  • After you file your claim, you can set up your payment and communication preferences.

While balancing health and safety with our commitment to customers, we continue to innovate and leverage technology by offering virtual claim handling.

Recovery and Rebuilding

If you do have to make repairs, consider improved building materials, including an impact resistant roof, which could qualify for insurance premium discounts.

Those actions are shared in our first-ever annual report detailing our progress in environmental, social, and governance areas. One example is how in 2020, our national and local philanthropic giving totaled nearly $57 million—with more than $16 million supporting pandemic relief. State Farm invested an additional $10 million in minority and women small business owners in the Company’s home state of Illinois.

And—because cleaner air helps make a better world—State Farm is committing to reduce its greenhouse gas emissions by 50 percent by the end of 2030.

We have renewable or carbon-free power purchase agreements for several of our main employee campuses and we’re actively exploring sustainable solutions for fleet vehicles, energy efficiency capital projects, green natural gas – plus how to engage employees individually toward this target.

This step is just the first in our continuing efforts to being good stewards of the neighborhoods we serve.

Download the 2020 ESG Highlights infographic

Initially, State Farm will focus its efforts on reducing two types of emissions:

• Direct GHG emissions, such as those from company facilities and vehicles (Scope 1 emissions)
• Indirect GHG emissions, such as those from the generation of electricity supplied to the Company (Scope 2 emissions)

“As a company, our mission is to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams,” said State Farm Chairman, President & CEO Michael Tipsord. “We also believe we have a responsibility to promote, influence, and engage in environmentally sustainable behaviors on behalf of our current and future customers and associates.”

This 50-percent reduction goal aligns with the Science-Based Target initiative (SBTi) goal of keeping global temperature rise below 1.5 degrees Celsius by 2050.

State Farm is currently working with a third party to validate its GHG assessment and obtain Independent Assurance Statements for 2019 and 2020 GHG baseline data.

State Farm has already made progress toward this goal, with recent facility efficiency measures detailed in its ESG report along with a recently-finalized renewable power purchase commitment for its Richardson, Texas office and data center facilities.

State Farm is also exploring sustainable solutions for fleet vehicles, energy efficiency capital projects, virtual power purchase agreements, and green natural gas.

This ESG report, the first of its kind in the Company’s history, summarizes 2020 State Farm work in the areas of environmental sustainability, social impact, and responsible governance of company operations.

“For nearly one hundred years, State Farm has functioned on the belief that being a good neighbor means being good stewards of the neighborhoods we serve,” said State Farm Chairman, President & CEO Michael Tipsord. “We want to help make a better world by building resilient futures, empowering good neighbors, and protecting what matters.”

Highlights of the new report include:

• Increased energy efficiency: More than 80% of State Farm facilities have an Energy Star Score of 75 or higher.
• $100 million committed in support for minority communities for issues of racial equity and justice over the next 5 years.
• 98,000 hours of employee & agent volunteering, which generated $647,500 in related grant funding
• Evolving workforce demographics: women comprise 57% of employees and 37% of executive roles. Minorities hold 24% of executive roles.

To accompany this report on 2020 activity, State Farm is also announcing a new environmental commitment to reduce its greenhouse gas (GHG) emissions by 50% by the end of 2030.

State Farm is the largest auto and homeowner insurance provider in the U.S., with more than 85 million policies and accounts.

Download the 2020 ESG Highlights infographic

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.  

Congrats to Patrick and Aaron!

And although they didn’t win, a huge congratulations to Patrick Mahomes and Kansas City. And an equally huge contratulations to Aaron Rodgers on earning his third MVP award, one of three players to be recognized more than twice with the pro football honor.

Consumers can view other current commercials and will continue to hear from State Farm^® in a fresh, updated voice on the company's Commercials YouTube Channel.

There will also be a behind-the-scenes look at our commercial during the 20^th anniversary of CBS’ “Super Bowl’s Greatest Commercials” TV special, so tune in Wednesday, Feb. 3, at 8 p.m. ET.

Jake from State Farm is still working hard for #TeamStateFarm. Check out the new videos and stay tuned for more fun to come.

Consumers will continue to hear from State Farm^® in a fresh, updated voice and new direction. View other current commercials below or to see all, visit our Commercials YouTube Channel.

The transaction is expected to close in early 2021, subject to approval by GAINSCO’s shareholders, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, obtaining regulatory approvals, and satisfaction of other customary closing conditions.

GAINSCO concentrates on the non-standard personal automobile insurance market, specializing in minimum-limits personal auto insurance.

The transaction is the first acquisition of an insurance company by State Farm in its 98-year history.

“We believe this acquisition positions both our company and GAINSCO well for future growth,” said Michael Tipsord, State Farm President, Chairman, and CEO. “Because of our competitive value, broad line of products, and exceptional customer service from our employees and 19,200 State Farm independent contractor agents, customers have made us the largest property and casualty insurer for several decades. We are excited for the opportunity State Farm agents will have to serve a market that has historically not been open to them. This will help us further toward our goal of serving more customers in more ways.”

“This transaction creates value for GAINSCO’s shareholders and is especially opportunistic for our GAINSCO team, agency base, policyholders and plans for future growth." said GAINSCO Executive Chairman Bob Stallings. He added, “GAINSCO is a leading provider of non-standard auto insurance products in the markets we serve and we look forward to partnering with State Farm, its agent network and our existing agency channels to achieve our mission of becoming a nationwide leader in the fastest growing segment of the auto insurance market."

“State Farm has an extraordinary market reputation and a highly capable independent contractor agency system,” said GAINSCO CEO Glenn Anderson. “GAINSCO looks forward to providing our very successful minimum limits auto insurance program to State Farm agents in the future, while continuing to partner with our own outstanding agency system as we expand across the country. We are excited that, in joining forces with State Farm, we will accelerate our long term mission to become the best nationwide non-standard personal auto insurer in the industry.”

Transaction Details

Under the definitive merger agreement, upon closing State Farm Mutual will acquire 100% of the stock in GAINSCO, Inc., the holding company of MGA Insurance Company, Inc., a Texas-domiciled insurance company, and GAINSCO shareholders will receive approximately $107.38 per share in cash. GAINSCO will continue to operate as a separate company and brand with continued focus on its current objectives. Over time, the parties expect to provide State Farm agents the opportunity to distribute GAINSCO products in addition to State Farm products and services.

Barclays Capital Inc. was the financial adviser to State Farm, and Mayer Brown LLP served as legal counsel for State Farm. Sherman & Company was the financial adviser to GAINSCO, and Hunton Andrews Kurth LLP served as legal counsel for GAINSCO.

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At some point in our lives, we’ve all felt like we didn’t belong. For people who have moved to the United States from another country, that feeling can last more than a moment.

Six in 10 Americans (58%) say the U.S. feels very divided today and more than 40% of Americans feel that their trust in other people is worse because of the pandemic.*

Belonging Begins With Us is a PSA from the Love Has No Labels campaign to encourage everyone to foster a more welcoming community. This new work features exclusive new music from Lake Street Dive, covering Joe South's 1968 hit "Walk a Mile in My Shoes." Lake Street Dive appears courtesy of Nonesuch Records.

Our communities are stronger when we make connections across our differences. We make communities better when we are good neighbors.

State Farm^® is a Love Has No Labels brand partner. We provide support by promoting content across our channels. In addition to funding the campaign, we show support during the year through online and offline activations. These include social messaging, custom content creation and employee engagement events.

*Source: More in Common, September 2020

Six in 10 Americans (58%) say the U.S. feels very divided today and more than 40% of Americans feel that their trust in other people is worse because of the pandemic.*

Belonging Begins With Us is a PSA from the Love Has No Labels campaign to encourage everyone to foster a more welcoming community. This new work features exclusive new music from Lake Street Dive, covering Joe South's 1968 hit "Walk a Mile in My Shoes." Lake Street Dive appears courtesy of Nonesuch Records.

Our communities are stronger when we make connections across our differences. We make communities better when we are good neighbors.

State Farm^® is a Love Has No Labels brand partner. We provide support by promoting content across our channels. In addition to funding the campaign, we show support during the year through online and offline activations. These include social messaging, custom content creation and employee engagement events.

*Source: More in Common, September 2020

Brynn, 15, had just begun the driver’s education course at her high school to get her learner's permit. Then the pandemic forced students into remote learning in March.

It was one of many obstacles Brynn and students just like her suddenly had to navigate.

The course was adjusted to be completed remotely. However, departments of motor vehicles across the country altered their policies and availability to services. Driving schools were forced to close. Young drivers turned to their parents and family members.

“I’m apprehensive about driving,” Brynn said. “I’ve had some bad experiences and been in a couple of accidents. Driving terrifies me.”

In addition to being a passenger in a vehicle during a minor crash, a distracted teen driver crashed into her middle school bus. The school bus driver veered to avoid the collision causing the bus to roll onto its side.

“Nobody was seriously hurt,” Brynn’s mother Noel Payne said. “But those things are scarring. And now she’s not very excited because driving is stressful for her.”

Her apprehension is not unwarranted. National Teen Driver Safety Week (Oct. 18-24) is a time to remind teens of the need to remain focused behind the wheel. Motor vehicle crashes are the leading cause of death for teens (15-18 years old) in the United States - ahead of all other types of injury, disease, or violence.

Because of the pandemic, more parents are teaching their children how to drive, while at the same time we are all driving fewer miles. Additionally, the distractions have changed. Parents didn’t have smart phones when they were teens.

In July 2020, State Farm surveyed teens (16-19 year-old drivers) to examine their attitudes and behaviors regarding the use of smartphones while driving. The survey revealed nearly nine out of 10 said they engage in at least one cellphone behavior while driving. Two-thirds of teens said they program a navigation app while driving. Just under half said they read text messages or talk on a hand-held phone when behind the wheel.

Parents may also be influencing their teenage children. Teens who said their parents use cellphones while driving were significantly more likely to engage in each phone activity.

“Putting the cell phone away is a conversation we have every time we are in the car and it’s a rule we’ve agreed upon,” Noel said. “There are so many distractions built into driving, she doesn’t need her cell phone to be one of them.”

Brynn knows she needs to remain focused on all the intricacies of learning. Especially understanding all the responsibilities of getting behind the wheel.

“I am not so worried about hitting someone. I feel like I am careful and understand the risks of driving and what I am doing,” Brynn said. “It is hard to focus on everything happening around you – what’s in front of you, what is behind you and alongside you or wherever anything else is coming from.

“I can control some of that,” Brynn said, “But I have no control over what other drivers are doing while they are behind the wheel. I’ve seen what can happen and that is scary.”

“Fight the Virus. Fight the Bias.” is an extension of the iconic Love Has No Labels campaign. The film challenges viewers to join the fight in stopping the spread of racism and discrimination against the API community. It highlights the personal stories and resilience of diverse individuals from the API community. Many have personally experienced heightened discrimination and/or harassment throughout the pandemic.

“At a time when hateful rhetoric and racially-fueled discrimination are plaguing the API community, it’s critical that we all play a role in dispelling the racist misconceptions and actions pervading our country,” said Ad Council President and CEO Lisa Sherman. “We hope this film will inspire Americans to rethink their biases and help put an end to the wave of racism facing the API community.”

State Farm^® is a Love Has No Labels brand partner. We provide support by promoting content across our channels. In addition to funding the campaign, we show support during the year through online and offline activations. These include social messaging, custom content creation and employee engagement events.

Learn more about the movement at lovehasnolabels.com/fightvirusbias. 

*Numbers are regularly updated at StopAAPIHate.com.

The spot builds on the campaign’s longstanding effort to address bias. It holds a mirror to the simple acts of freedom often celebrated and taken for granted by non-Black Americans. It then reveals the stark contrast of those freedoms to the systemic racism and injustice many Black people endure.

The campaign encourages viewers to come together for racial justice. It also directs to lovehasnolabels.com for educational and actionable resources to help continue the work toward equality.

“The campaign’s message is very simple yet profound: we all have a role to play in dismantling systemic racism in this country,” said Lisa Sherman, president & CEO of the Ad Council. “It’s time for Americans to listen, learn and act. While we know these long-simmering problems are nothing new, we want to leverage this moment in time, a national reckoning with race, and inspire change.”

State Farm^® is a brand partner for Love Has No Labels. Brand partners provide support by promoting content across our channels. In addition to funding the campaign, we show support during the year through online and offline activations. These include social messaging, custom content creation and employee engagement events.

“Current State Farm driving data and claims experience show a considerable decline in miles driven and fewer accidents,” said State Farm Senior Vice President Rob Stewart. “As a result, we’re looking for ways to continue supporting our Illinois customers while we monitor and adjust to trends.”

In addition to this auto rate reduction, the discount for participating in Drive Safe & Save™ is increasing to 10%, and empowers drivers to save more on their auto premiums through driving behaviors.

Customer rate reductions will vary based on their individual renewals. Customers are encouraged to visit with their State Farm agent about individual policies, coverage, and any opportunities for discounts, including Drive Safe & Save.

The commitment includes a $4 million national grant to LISC to expand employment, revitalize commercial corridors, promote health and enhance community safety in 12 cities over the next two years. In addition, State Farm has set up a $10 million loan pool with LISC focused on its home state of Illinois. It will specifically address the needs of small businesses and community nonprofits hit hard by COVID-19 in Central Illinois communities like Peoria, Bloomington and Springfield, as well as Chicago.

“This year marks our 20-year anniversary of investing in LISC—an organization vital to connecting resources to communities in need,” said Annette Martinez, senior vice president for State Farm. “We know that together, we are creating economic opportunities to help communities grow and prosper—and providing relief to small businesses and nonprofit organizations struggling due to COVID-19.”

The $10 million pool, announced in late April, will offer low-cost loans of up to $250,000, with LISC’s local program staff in Central Illinois and Chicago connecting with businesses and nonprofits to deploy capital. The loans are one piece of the larger State Farm COVID-19 relief strategy, which includes $2 billion in premium rebates to customers.

At the same time, the new grant from State Farm will fuel national outreach strategies, including support for staffing and tools focused on addressing the root causes of poor health in communities. Grant funds will further advance long-term community investment programs in 12 metro areas, with a particular focus on:

• Financial Opportunity Centers, which provide a range of integrated services to help people build financial stability—from job training and placement to financial coaching and income support.
• Commercial corridor revitalization and anti-displacement strategies in gentrifying communities, to catalyze economic vitality that benefits local residents.
• Community health and safety programs, such as “green” strategies for affordable housing and recreation programs that engage at-risk youth.

Implementation will vary to meet local needs. For example, the new State Farm grant will seed the opening of a new Financial Opportunity Center in Atlanta, so LISC can support financial and employment services for hundreds of residents. In Indianapolis, it will fuel a program that revitalizes underutilized industrial sites, creating jobs and economic vibrancy. In Milwaukee, it will advance public safety strategies that connect community members, businesses and law enforcement in common efforts, while also fueling “creative placemaking” activities to reduce crime. And, in Phoenix, it will support transit-oriented development plans that revitalize businesses in often-overlooked communities.

“Now, as we all face uncertain days ahead, State Farm has once again stepped up to help, both responding to the immediate crisis and continuing to support long-term opportunities for stability, opportunity and growth," said Maurice A. Jones, LISC CEO.

In addition to these four cities, the State Farm grant will support similar local efforts in the Bay Area (Oakland/San Francisco), Chicago, Houston, Minneapolis/St. Paul, New York, Peoria, Ill., Philadelphia, and Tacoma, Wash.

“Even before the global health crisis, State Farm had long supported strategies to build stronger, more inclusive local economies where families and businesses could thrive,” said Maurice A. Jones, LISC president and CEO. “Now, as we all face uncertain days ahead, State Farm has once again stepped up to help, both responding to the immediate crisis and continuing to support long-term opportunities for stability, opportunity and growth. We are enormously grateful for their steadfast support.”

Over the last 20 years, State Farm has invested $149 million in LISC’s community development programs, leveraging more than $11 billion to build or rehabilitate 53,000 affordable homes, create more than 20 million square feet of retail, community, and educational space, and serve nearly 215,000 people through income- and wealth-building initiatives.

In the News:

• WGLT:  State Farm to Fund Load Programs for NonProfits (04/21/20) 

As a way to express solidarity and thanks to these critical front-line workers, instead of our signature red, we're shining blue.

The lights are part of a nationwide effort to show support. Our Marina Heights hub in Arizona was the first to “Light it Blue” in response to a call by Governor Ducey. We’ve since extended the visible salute to the Corporate Headquarters in Bloomington, Illinois, Park Center hub in Atlanta, and CityLine hub in Dallas. The lights will be lit from dusk to dawn for the next several weeks.

“We want all on the frontlines of this crisis to know how much we care about them,” said Jenny Greminger, Vice President – Administrative Services. "We appreciate their sacrifices to keep us safe and healthy."

Blue light represents calm, faith, trust and helps elevate mood. We hope when essential workers – and others in the community - see the lights they feel uplifted.

In addition to the blue lighting, State Farm has donated millions to nonprofit organizations in direct support of COVID-19 relief efforts.

Food pantries have long known the impact peanut butter can have. It's a prized addition to their shelves.

For the past three years, State Farm employees have stepped up to help meet that need. In February, more than 33,500 pounds of peanut butter were donated at our hubs and operations centers. The total surpassed last year’s total by more than 10,000 pounds.

Local organizations in several locations across the country received donations in early March.

Not too long after, COVID-19 shuttered our offices and much of the country. Now, with resources scarce and more people than ever relying food banks, the peanut butter will make an even bigger impact.

Ashley Edling is the Food Panty volunteer and programs manager for the Network of Community Ministries in Dallas. It’s one of 13 agencies that received peanut butter from this year’s drive.

“Shelf stable items like peanut butter provide a lasting effect. We can distribute it to families for weeks after the initial donation," Ashley said.

Some of the Atlanta Hub employees’ donation went to Georgia State University’s food pantry. Many in the university’s student population face unique challenges including food insecurity. There State Farm LIFT Scholars, who receive scholarship support from State Farm, helped stock the pantry’s shelves.

“Philanthropy can have an amplifying effect. The peanut butter donation allowed our LIFT Scholars to give back and support others facing difficult circumstances,” said Heath Wood, Senior Director Corporate and Foundation Relations, Georgia State University.

“It showed them the resources, education, and attitude necessary to succeed in the face of the challenges they’ll face in life.”

Peanut Butter Drive Highlights:

• Phoenix Hub employees collected 10,526 pounds of peanut butter. It was donated to Midwest Food Bank, United Food Bank and St. Mary’s Food Bank.
• Atlanta employees collected and donated 7,255 pounds of peanut butter. It went to the Midwest Food Bank of Georgia and the Georgia State University Panther Pantry.
• Employees from the Bloomington campus collected 6,313 pounds of peanut butter that went to the Midwest Food Bank of Bloomington-Normal.
• In Dallas, 8,467 pounds of peanut butter was donated to the Network of Community Ministries’ food pantry and the Richland College and the UT Dallas campus food pantries.
• State Farm Operations Centers in Austin, Charlottesville, Lincoln, and Newark collected over 1,021 pounds of peanut butter for their local food banks.

UPDATE: Due to an overwhelming response, State Farm has just doubled our commitment and will now be matching donations made at redcross.org/statefarm up to $200,000!

Catch clips on The Tonight Show with Jimmy Fallon YouTube channel.

Since 1954, millions of Americans have tuned in to watch the longest running late night program in television history, The Tonight Show. Since the outbreak of the COVID-19 pandemic, host Jimmy Fallon has been filming special “at home” editions of the Tonight Show where he (virtually) interviews guests, hosts “live” musical performances, and tries to keep his two young daughters from jumping on camera and stealing the show!

On last night’s show, Jimmy Fallon announced that for the week of March 30, State Farm will match any donation up to $100,000 made to the Red Cross. To make a donation visit http://redcross.org/statefarm. For those of you who were looking for ways to help, this is a good way to double the difference you make.

This week, our neighbors @StateFarm are matching donations made to the American Red Cross, up to $100,000! Use the link https://t.co/UAOCaU8YHD to donate – created with @StateFarm pic.twitter.com/9EcTZg80c0

— The Tonight Show (@FallonTonight) March 31, 2020

State Farm, America’s largest property and casualty insurance provider, and U.S. Bank, the country’s fifth largest commercial bank, today announced a strategic alliance whereby U.S. Bank will assume State Farm Bank’s existing deposit and credit card accounts and State Farm agents will have the unique opportunity and tools to introduce U.S. Bank deposit products and co-branded credit cards to State Farm customers. This alliance will benefit State Farm customers, offering them new, easy ways to manage their banking needs.

The alliance is part of a broader strategy by State Farm to exit banking operations. In addition to assuming State Farm Bank’s existing deposit and credit card accounts, the two companies are exploring working together to provide State Farm customers with access to vehicle loans and business banking products.

“State Farm has been committed to helping people for nearly 98 years. U.S. Bank is an outstanding institution that shares our commitment to strong customer relationships,” said State Farm President and CEO Michael Tipsord. “When we combine State Farm’s deep customer relationships with the scale and capabilities of companies like U.S. Bank, we can help significantly more people.”

The transition of deposit and credit card accounts is scheduled to begin after closing, subject to regulatory approval, later this year and into 2021. Current State Farm Bank customers do not need to take any action.

“We are excited about this new alliance with State Farm because it will help us reach more customers in the moments that matter most,” said Andy Cecere, chairman, president and CEO of U.S. Bank. “It is a terrific opportunity to combine U.S. Bank products, services and digital capabilities with State Farm’s coast-to-coast network of agents. This relationship will provide State Farm customers with enhanced product options while expanding U.S. Bank’s reach into new and existing markets.”

State Farm and its affiliates are the largest providers of auto and home insurance in the United States with nearly 19,000 agents serving approximately 84 million policies and accounts.

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

“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.  

“We need to think about the whole picture of keeping people safe,” says State Farm Assistant Vice President, Enterprise Research Laurel Straub. “While the conversation about the future of mobility focuses a lot on autonomous vehicles, people are using many modes of transportation today. As technology advances, we’re advancing right along with it to reduce the number of deaths caused by human error.”

The conversation involves many entities – public and private – coming together to understand the issues, collaborate on solutions and use resources wisely. State Farm is uniquely positioned to bring everyone to the table. As the nation’s largest P&C insurer, it covers the movement of goods, the individuals who move those goods and the vehicles who transport those goods.

“The intent is to start identifying the key public policy issues in the mobility and transportation space,” said Ryan Gammelgard, State Farm Public Policy Counsel. “We’re excited to convene and continue these conversations in order to create a framework that propels the transportation industry forward.”

Helping Illinois Build the Framework

Recently, one such event was held -- Framing the Future of Mobility for Illinois. Organized by the Department of Commerce and Economic Opportunity (DCEO), the Illinois Department of Transportation (IDOT), and the Illinois Autonomous Vehicles Association (ILAVA), more than 100 stakeholders attended at State Farm in Bloomington, IL.

“Technology is transforming mobility in exponential ways,” said Jerry Quandt, Executive Director, ILAVA. “Because many areas depend on mobility – including agribusiness, energy, information technology, manufacturing, transportation and logistics and small business, this topic is bigger than transportation. Innovation in mobility is an economic driver for our state, enabling industries and elevating citizens' quality of life. To make it work, there needs to be cooperation among public, private and academic entities.”

Mobility and Transportation at State Farm:

State Farm was founded on the revolutionary idea that farmers should have different rates of insurance than city drivers due to different risk. To advance safely into the future, State Farm teams up with many entities -- research, ongoing alliances with leading universities, car manufacturers and government bodies. This includes collaborating with the University of Michigan and the University of Michigan Transportation Research Institute (UMTRI) to test vehicle automation. Known as Mcity, the research conducted helps stakeholders understand the benefits and risks of connected and automated vehicles.

For More Information:

• Insurance Information Institute (I.I.I.) - Self-Driving Cars and Insurance
• 2019 Governors Highway Safety Administration (GHSA) Report: The States’ Voice on Highway Safety
• State Farm Auto Relationships
• Illinois Department of Commerce and Economic Opportunity (DCEO)
• Illinois Department of Transportation (IDOT)
• Illinois Autonomous Vehicles Association (ILAVA)

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State Farm was a big part of this year’s All Star game both on AND off the court! Take a look at some highlights of the big event.

OK, we have to immediately dive into that first one. Opioids? Yes. Consider this:

• The risks associated with negligence, fraud, deceptive marketing and over-prescription are significant.
• The opioid crisis impacts people all around the world; however, most claims come from towns, districts or municipalities, rather than individuals.
• The Society of Actuaries estimates the total economic burden of the opioid crisis in the U.S. from 2015 to 2018 was $631 billion.

This was one of several topics State Farm® and other insurers discussed at a conference of the Geneva Association – the leading international think tank of the insurance industry, which pursues “Insurance for a Better World.”

State Farm, a member the past eight years, hosted the event in late 2019, gaining insight into how international policymakers think about various regulatory matters.

"There is both inherent competition and a wide range of differing points of view within the insurance industry from a global perspective,” said Kevin Frederick, Vice President – Counsel in the Law Department. “But there are also real societal and global issues that transcend all of us, and emerging forms of risk that impact all of us.”

“Perhaps the most important takeaway for me,” he said, “has been not only learning more about differing points of view within the international industry, but also how these differing points of view are interconnected with our shared values.”

Other interesting topics:

Artificial intelligence (AI)

• AI is a rapidly evolving area that crosses all forms of business in various ways.
• As AI continues to evolve, new and emerging risks follow, with complex considerations from a legal, ethical and cultural perspective.
• A new area of research and regulation centers on why machines make the decisions they do.

Ride sharing

• As ride-sharing continues to surge in popularity, there are fragmented approaches toward regulating risk and liability across cities, states and countries.
• The ride-sharing experience from an insurance, risk and liability perspective is complex. For example, consider when and how coverage applies before, during and after a driver and passenger engage in a ride-sharing experience.
• Insurance, risk and liability are based on historical loss patterns and predictive outcomes. The ride-sharing economy lacks historical data and is continually influenced by evolving forms of technology and AI.

Kevin Mimms, the actor portraying Jake, will be seen in more ads down the road. This new ad also spotlights the iconic “Like a Good Neighbor, State Farm is There.^®” tagline.

“The simple phrase, ‘Like a Good Neighbor, State Farm is There,’ reflects how State Farm agents and employees make a meaningful difference helping others,” said Rand Harbert, Chief Agency Sales and Marketing Officer. “Jake from State Farm isn’t just an individual – he is all of us. He represents what every one of the 19,000 State Farm agents and 58,000 employees strive to deliver.” 

The Marketing Arm, lead creative agency for this work, re-envisioned “Like a Good Neighbor” campaign. Check back soon as new commercials hit the airwaves.

Join the conversation on Yammer!

He’s back – and he’s still wearing khakis. You may have caught a glimpse of him during the Big Game pregame show. Jake from State Farm is officially back.

Kevin Mimms, the actor portraying Jake, will be seen in more ads down the road. This new reboot ad also spotlights the iconic “Like a good neighbor, State Farm is there.^®” tagline.

“The simple phrase, ‘Like a good neighbor, State Farm is there,’ reflects how State Farm agents and employees make a meaningful difference helping others,” said Rand Harbert, Chief Agency Sales and Marketing Officer. “Jake from State Farm isn’t just an individual – he is all of us. He represents what every one of the 19,000 State Farm agents and 58,000 employees strive to deliver.” 

The Marketing Arm, lead creative agency for this work, re-envisioned “Like a good neighbor” campaign. Check back soon as new commercials hit the airwaves.

A State Farm customer in Atlanta recently left a pan on the stove unattended, and it caught fire. They forgot the adage and attempted to put out the fire by throwing water on it. While nobody was hurt, the damage increased.

"The result was $9,000 in insured damages to the stove, cabinets, countertops and floor," said their agent Ken Anderson, of Alpharetta, Georgia. “You should never use water to try and put out a grease fire."

It could have been worse. The average State Farm cooking/grease fire claim in the U.S. was more than $48,000 in 2018.

Georgia is the top state for cooking fire losses. Anderson has seen at least two dozen cooking-related fire claims in his 38 years as an agent. Many were made worse when oil and water mixed.

According to the National Fire Protection Association (NFPA), cooking is the leading cause of home fires. One out of three home fires begins in the kitchen - more than any other place in the home. Unattended cooking is the number one cause of kitchen fires. NFPA data shows that Thanksgiving is the peak day for home cooking fires.

The oil and water pitfalls are not reserved to the kitchen. Last year, around Thanksgiving, one of Ken's customers attempted to fry a frozen turkey. In addition to not having thawed the bird, the customer had too much oil in the fryer. When he dropped the turkey in, the hot oil spilled over, leaving him with second degree burns and a damaged deck.

Among the advice Ken shares with customers?

“Make sure you have smoke detectors and fire extinguishers that are up to date,” he said. “And, keep a cooking or grease fire-approved fire extinguisher nearby when cooking or frying.”

It pays to follow the advice. In 2018, State Farm paid more than $118 million for nearly 2,500 cooking/grease fire homeowners* claims across the U.S.

*Note: excludes renters and condo unit claims.

Because many families and friends engage in cooking during the holidays, it is important to follow some basic safety tips:

• Always keep an eye on what you are cooking/frying. Never leave the cooking area unattended.
• Keep anything that can catch fire — oven mitts, wooden utensils, food packaging, towels or curtains — away from your stovetop.
• Keep a lid beside the pan when cooking. If a fire starts, slide the lid over the pan and turn off the burner. Never throw water on a grease fire.
• Keep a fire extinguisher approved for cooking or grease fires nearby. Make sure your smoke alarms are working.

Mouse over (or touch on mobile) the + on the interactive image below to see the safety tips.

A State Farm customer in Atlanta recently left a pan on the stove unattended, and it caught fire. They forgot the adage and attempted to put out the fire by throwing water on it. While nobody was hurt, the damage increased.

"The result was $9,000 in insured damages to the stove, cabinets, countertops and floor," said their agent Ken Anderson, of Alpharetta, Georgia. “You should never use water to try and put out a grease fire."

It could have been worse. The average State Farm cooking/grease fire claim in the U.S. was more than $48,000 in 2018.

Georgia is the top state for cooking fire losses. Anderson has seen at least two dozen cooking-related fire claims in his 38 years as an agent. Many were made worse when oil and water mixed.

According to the National Fire Protection Association (NFPA), cooking is the leading cause of home fires. One out of three home fires begins in the kitchen - more than any other place in the home. Unattended cooking is the number one cause of kitchen fires. NFPA data shows that Thanksgiving is the peak day for home cooking fires.

The oil and water pitfalls are not reserved to the kitchen. Last year, around Thanksgiving, one of Ken's customers attempted to fry a frozen turkey. In addition to not having thawed the bird, the customer had too much oil in the fryer. When he dropped the turkey in, the hot oil spilled over, leaving him with second degree burns and a damaged deck.

Among the advice Ken shares with customers?

“Make sure you have smoke detectors and fire extinguishers that are up to date,” he said. “And, keep a cooking or grease fire-approved fire extinguisher nearby when cooking or frying.”

It pays to follow the advice. In 2018, State Farm paid more than $118 million for nearly 2,500 cooking/grease fire homeowners* claims across the U.S.

*Note: excludes renters and condo unit claims.

Because many families and friends engage in cooking during the holidays, it is important to follow some basic safety tips:

• Always keep an eye on what you are cooking/frying. Never leave the cooking area unattended.
• Keep anything that can catch fire — oven mitts, wooden utensils, food packaging, towels or curtains — away from your stovetop.
• Keep a lid beside the pan when cooking. If a fire starts, slide the lid over the pan and turn off the burner. Never throw water on a grease fire.
• Keep a fire extinguisher approved for cooking or grease fires nearby. Make sure your smoke alarms are working.

Mouse over (or touch on mobile) the + on the interactive image below to see the safety tips.

United States Air Force Brigadier General Tracey Siems’ position at the company was secured three times during her 31-year military career. Tracey, an information security manager at State Farm, retired from the Air Force Nov. 1 after a robust career.

“I wanted to do something few people did,” Tracey said of deciding to attend the United States Air Force Academy. “I was in the ninth class to graduate women. That in itself was pretty groundbreaking.”

Tracey continued to make history through the Air Force, being only the third of three women to make the rank of brigadier general in the Financial Management and Comptroller career field. While serving as the finance officer during an operation in Germany in the 1990s, Tracey was in charge of providing monetary needs for fuel and landing fees for missions providing medical supplies and food to citizens when the Soviet Union was broken up into several smaller countries.

“We had 65 airlift missions to go into those countries taking medical supplies and food. We had to pay fuel and landing fees in cash, so I was responsible for getting paying agents on each plane and ensuring they had enough cash to pay for it. You don’t think of finance people as boots-on-the-ground people,” she remembered.

In her highest position as brigadier general, Tracey increased the amount of colonel positions underneath her position, “allowing more career paths all across the Air Force.”

Tracey has moved through State Farm, making improvements where she could, as well. Hired in 1998, she had the opportunity to follow a job track to become a project manager and then a security manager. Through it all, State Farm supported her during her military obligations.

“They’ve always been great about giving me time off and State Farm has always complied with the military leave laws, even going above and beyond with that,” she said.

Tracey also helped get the Military Affinity Group (MAG) approved – an Employee Resource Group for all State Farm employees. Employee Resource Groups serve as resources for employees’ growth and development. Tracey worked to get it approved, sought an executive sponsor for support and worked with a team through the year-long process. She was president of MAG for the first two years.

“It was right after 9/11 and one of my cube mates, Tim Wheeler, and I talked about forming an affinity group to support the military,” she said. “After 9/11, we knew the Reserves were going to be busier and the group would be a way to keep the relationship between the company and the military.

“We thought it would be a good way to have understanding between requirements on both sides and help State Farm understand the skillsets military personnel can bring to the company and how State Farm can leverage them.”

Tracey said the most difficult thing the last 30 years has been balancing both careers and family time.

“My husband farms, so I tried to do duty when he wasn’t planting or harvesting. That was a juggling act,” Tracey said. “If I was on military duty, I’d do State Farm work at night and vice versa. It was a constant balancing act.”

But, she’s humbly proud of what she has accomplished.

“We do it because it’s our job and what we do. We don’t step back to think about the sacrifices we’ve made.

“This year has been a good time to pause and reflect on my career and service. It is an honor to be recognized on Veterans Day.”

United States Air Force Brigadier General Tracey Siems’ position at the company was secured three times during her 31-year military career. Tracey, an information security manager at State Farm, retired from the Air Force Nov. 1 after a robust career.

“I wanted to do something few people did,” Tracey said of deciding to attend the United States Air Force Academy. “I was in the ninth class to graduate women. That in itself was pretty groundbreaking.”

Tracey continued to make history through the Air Force, being only the third of three women to make the rank of brigadier general in the Financial Management and Comptroller career field. While serving as the finance officer during an operation in Germany in the 1990s, Tracey was in charge of providing monetary needs for fuel and landing fees for missions providing medical supplies and food to citizens when the Soviet Union was broken up into several smaller countries.

“We had 65 airlift missions to go into those countries taking medical supplies and food. We had to pay fuel and landing fees in cash, so I was responsible for getting paying agents on each plane and ensuring they had enough cash to pay for it. You don’t think of finance people as boots-on-the-ground people,” she remembered.

In her highest position as brigadier general, Tracey increased the amount of colonel positions underneath her position, “allowing more career paths all across the Air Force.”

Tracey has moved through State Farm, making improvements where she could as well. Hired in 1998, she had the opportunity to follow a job track to become a project manager and then a security manager. Through it all, State Farm supported her during her military obligations.

“They’ve always been great about giving me time off and State Farm has always complied with the military leave laws, even going above and beyond with that,” she said.

Tracey also helped get the Military Affinity Group (MAG) approved – an Employee Resource Group for all State Farm employees. Employee Resource Groups serve as resources for employees’ growth and development. Tracey worked to get it approved, sought an executive sponsor for support and worked with a team through the year-long process. She was president of MAG for the first two years.

“It was right after 9/11 and one of my cube mates, Tim Wheeler, and I talked about forming an affinity group to support the military,” she said. “After 9/11, we knew the Reserves were going to be busier and the group would be a way to keep the relationship between the company and the military.

“We thought it would be a good way to have understanding between requirements on both sides and help State Farm understand the skillsets military personnel can bring to the company and how State Farm can leverage them.”

Tracey said the most difficult thing the last 30 years has been balancing both careers and family time.

“My husband farms, so I tried to do duty when he wasn’t planting or harvesting. That was a juggling act,” Tracey said. “If I was on military duty, I’d do State Farm work at night and vice versa. It was a constant balancing act.”

But, she’s humbly proud of what she has accomplished.

“We do it because it’s our job and what we do. We don’t step back to think about the sacrifices we’ve made.

“This year has been a good time to pause and reflect on my career and service. It is an honor to be recognized on Veterans Day.”

As an industry leader, safety has been at the forefront of our use of drone technology. State Farm was the first insurer to obtain an Federal Aviation Administration (FAA) waiver for commercial use. It collaborates with public sector partners like Virginia Tech’s Mid-Atlantic Aviation Partnership (MAAP).  Data and research from these types of collaborative efforts is helping to drive innovation in this rapidly changing technology.

National Drone Safety Awareness Week is Nov. 4-10, 2019. It is meant to recognize and advance the public-private partnerships and collaborations with drone technology. Each day, drone successes and accomplishments within different sectors will be highlighted.

• Monday: Public Safety and Security
• Tuesday: Business – Photography, Real Estate, Insurance
• Wednesday: Business – Infrastructure and Agriculture
• Thursday: Business – Commercial and Medical Package Delivery
• Friday: Education and STEM
• Saturday and Sunday: Recreational Flyers

National Drone Safety Awareness Week Tweets 

Learn more about the use of drones in the insurance industry.

• AUVSI (January 8, 2019) – State Farm granted first national FAA waiver to conduct UAS flights over people and BVLOS
• Drone Life (January 8, 2019) - State Farm Granted First National FAA Waiver for Damage Assessment Drone Flights
• Virginia Tech Daily (March 8, 2019) - National waiver lays out a roadmap for drone integration
• Robotics Business Review (March 15, 2019) - How State Farm Earned National Waiver for Drone Flights

“When the Human Resources team came to me and said we need to do something different because our employees say they need more time to help their families, I could certainly relate,” said Mary Schmidt, Executive Vice President and Chief Administrative Officer.

Mary says her experiences as a wife, mom and daughter helped shape her perspective.

“Almost 30 years ago, when I had my first baby, there wasn’t a lot of time off for new moms,” remembers Mary. “I asked my boss for unpaid leave so I could have a few more weeks at home. My husband and I had to really budget so we could afford for me to be with her.”

Enhanced Parental Leave

Starting in October, all parents – birthing, non-birthing, adoptive – will receive six weeks of paid Parental Leave.  Parental Leave is in addition to the six or eight weeks of paid Short Term Disability that eligible birthing moms receive. All parents also have the option to take four more weeks unpaid to be used within one year of the birth or adoption.

State Farm also doubled the adoption reimbursement benefit for employees.

“Adoption is near and dear to my heart. My younger brother and sister-in-law just adopted a beautiful baby girl. I may be her aunt, but I see her as my grandbaby…until my kids help me out there,” Mary added with a laugh.

Life Leave for Health Concerns

But it’s not just parents who need help. Sometimes, so do their kids. Last year, Mary and her brothers put their mom in a memory care facility.

“Family comes first, for all of us,” Mary emphasized. “I’m still struggling with my mom’s dementia diagnosis. Instead of being her daughter, I have become a caregiver. It’s stressful, sometimes heart-breaking and unfortunately not unique. I know many other employees are going through something similar and need support.”

Starting Jan. 1, in addition to the State Farm paid time off (PTO) plan, employees will also have a new Life Leave benefit. This allows employees to take up to 40 hours annually for their own or a family member’s health condition. Think sick kids or ailing parents. Beginning next year, employees like Mary can use Life Leave to care for their sick parent or attend medical appointments.

“It just so happens I can personally relate to a lot of the benefit changes this year,” Mary said. “But we are constantly seeking employee input so we can respond to what people need in today’s world.”

Enjoy Celebration Leave

And sometimes what we need is a little celebration. In 2020, employees will also receive Celebration Leave. This leave provides one paid day off work each calendar year for employees to enjoy, celebrate, or recognize an event important to them.

“It could be to celebrate your birthday, Halloween, or in my case, another great New Year’s Eve with my family,” Mary said.

Life is full of celebrations and challenges, the State Farm benefit package is meant to support employees through it all. The power of our benefits is real!