State Farm Insurance Companies: A Brief Highlight
Established on June 7, 1922 by a retired farmer named George Jacob Mecherle, State Farm Insurance Companies began as a mutual automobile insurance company. It first concentrated his operation by providing Illinois farmers insurance needs in automobile. The founder’s initial strategy was to provide insurance needs to farmers for he believed that farmers had fewer mishaps than urban drivers. Because of this, insurance premiums were paid by farmers at lower amounts. His company became successful because of this concept.The company built by George Mecherle, the State Farm Mutual Insurance Company did not have any shareholders. It was a mutual insurance company and was owned by its policyholders. This business setting is still held by the company even today.
As a consequence to the success of George Mecherle, State Farm Insurance Company has expanded its operation. Though farmers were the company’s initial market, the company has widened its target market and has incorporated many businesses under its umbrella. Auto insurance, though primary, is not only the insurance type offered by the company. It has also provided health, life, homeowner and casualty insurance services. It has also made considerable and successful efforts to commence its banking section and mutual fund division.
State Farm Mutual Automobile Insurance Company is the parent corporation of many subsidiaries in the insurance and banking sectors. These subsidiaries are wholly-owned by the parent company. Mutual funds, automobile, life and fire insurances, homeowner insurance and banking are the products and services provided by the several companies that formed the State Farm Insurance Companies.
State Farm Insurance Companies include many subsidiary corporations that operate in different states in the United States. The company’s headquarters is stationed at Bloomington, Illinois.
The company’s wide market covers primarily the United States. It serves the mainland United States, as well as the isolated states of Alaska and Hawaii. It has also covered some key cities and areas in Canada.
Its subsidiaries include: State Farm Life Insurance Company, founded in 1929; State Farm Life and Assurance Company, operational since 1961; State Farm Fire and Casualty Company, formed in 1935; State Farm County Mutual Insurance Company of Texas, 1961; State Farm Indemnity Company, established in 1961; State Farm General Insurance Company, organized in 1962; and State Farm Florida Insurance Company, which commenced on 1999.
State Farm Lloyds is another company of the State Farm Insurance Group. It is an organization of underwriters under the jurisdiction of Texas and has legally abided by the Lloyds Plan. Began in 1983, its operation is focused in underwriting commercial and homeowner multiple peril insurance in Texas.
State Farm Bank is a banking sector of the State Farm Insurance Companies. Consumer-oriented financial products and services are its focus, a complement to State Farm Insurance market on personal service.
State Farm Investment Management Corp. is the financial consultant and investment advisor of State Farm Insurance Companies’ mutual fund sector. The State Farm VP Management Corp. is the broker for mutual fund companies under the State Farm Group.
Edward B. Rust, Jr., the successor and son of Edward B. Rust, Sr. is the present chief executive officer, as well as chairman, of State Farm Mutual Automobile Insurance Company. He also serves as the CEO of State Farm Life Insurance Company and other State Farm subsidiaries. He is the fifth CEO of the company since George Merchele.
State Farm is more popular in its insurance services. The State Farm Auto Insurance arm of the company has an edge in the auto insurance business. As a trivia, State Farm has insured 40 million vehicles in the United States. That is a considerable number of cars to begin with. Based on statistics, the company has insured one out of five cars in America. State Farm Insurance, has now been considered the largest automobile insurer in the United States. This ranking has been held by the company since 1942.
