State Farm Insurance Companies State Farm Insurance Companies

State Farm Insurance Companies

State Farm Insurance Companies State Farm Financial Operations & Compliance Fall 2005

Why Have Insurance?

What is Insurance? • Promise • Transfer of Risk • Indemnity Principal • Social Device

Types of Insurance • Property • Casualty • Life • Health

U. S. Industry Scope • Around 5, 000 domestic insurance companies • 2. 1 million jobs as of May 2005 (down from 2. 3 million in 2003) • $956 billion in premiums in 2004 (P/C & L/H) • Industry return on equity in 2004: – 14. 1% in P/C; 14. 4% in L/H Sources: A. M. Best, Insurance Information Institute, Bureau of Labor Statistics

“ABOUT STATE FARM” State Farm’s mission is to: • help people manage the risks of everyday life, • recover from the unexpected, • and realize their dreams.

Our Vision for the future. . . is to be the customer’s first and best choice in the products and services we provide. We will continue to be the leader in the insurance industry and we will become a leader in the financial services arena. Our customers’ needs will determine our path. Our values will guide us.

State Farm Data • 23 Affiliated Companies • $149. 8 Billion in Assets (12/31/04) • 16, 800 Agents • 69, 000 Employees • 1, 800 Accounting Employees • 75 Million Policies & Accounts • Mutually Owned Company

Industry Positions • Ranked #19 within Fortune 500 • #1 U. S. Auto insurer since 1942 • 18. 2% Market Share at end of 2004 • Almost 40 million Auto policies • #1 U. S. Home insurer since 1964 • 22. 5% Market Share at end of 2004 • Over 24 million Fire policies • Leading insurer of pleasure boats

State Farm Product Lines • Financial Services • Life • Health • State Farm Bank® • State Farm Mutual Funds®

Regulation • Highly Regulated By the States

Financial Statements GAAP vs. Statutory Accounting • Statutory Emphasis is on Insolvency • Not All Company Assets Are “Admitted” • States Perform Various Insolvency Tests From Financial Statements

Finance Structure • Centralized vs. De-centralized • Corporate • Zone Operation Centers • Insurance Support Centers (ISC’s) • Supervisory vs. Analyst

State Farm Corporate Building

Corporate Functions • Financial Reporting & Analysis • General Accounting Services • Tax • Investment Accounting • Accounting Benefits

Corporate Functions • Loss Reserves • Planning & Analysis • Data Management Services • Auditing & Compliance • Treasury Services • Administration

Corporate Functions • Financial Shared Services – Accounts Payable – Agency Compensation – Employee Compensation – Travel and Expense

Corporate Atrium

Corporate Atrium

Zone Structure

Field Finance Functions • Payment Processing • Cash Disbursements • Agency Compensation • Self Audits • Expense Analysis

Corporate South Complex

Systems • Financial Business Analyst – Current Systems Support – New Systems Development – Create and maintain detailed operating procedures

Corporate South Complex

Daily Duties – Supervision • People Skills • Performance Management • Organization & Planning • Problem Solving • Time Management • Communication

Daily Duties - Analyst • Problem Solving • Project Development • Operational Assistance • Coordination • Communication • Functional Area of Expertise

Technical Training • On-Line Operating Procedures • Hardware and Software – Vendor Application – Numerous proprietary applications • Supervisory Skills – CD-ROM Leadership Development Series

Professional Development • In-House Courses • Insurance Education – CPCU, Ch. FC, CLU, FLMI • Professional Designations – CPA, CMA, CFA • Tuition Aid

Career Paths Diversity Opportunity Mobility

Key Benefits to Consider • Competitive salary • Paid time off • Types of Insurance • 401(k) matching • Pension plans • Alternative work arrangements • Work environment/dress code • Affinity groups/activities/sports

What We’re Looking For • Accounting and other business majors with a minimum of 9 hours of Accounting • CIS/MIS hours are beneficial • Leadership, communication skills, analytical thinking, learning agility, etc. • 3. 2 GPA overall and in major

Internship Information Dates: Begin May 22, 2006 End August 4, 2006 Salary: $14. 00/Hour $15. 00/Hour - Returning Interns Higher hourly rate for interns with an exam Housing: locating Subsidized Housing State Farm provides assistance in housing in the Bloomington/Normal community

Internship 2006 • Provides a practical and meaningful work experience • Benefits – Exposure to our various departments & leadership team – Overall view of the corporate environment – Interaction with other interns as well as State Farm employees

CONTACT INFORMATION State Farm Insurance Human Resources Three State Farm Plaza South, K-1 Bloomington, IL 61791 E-mail: jobopps. corpsouth@statefarm. com Need more information? Visit our website! www. statefarm. com

State Farm Corporate

State Farm Park

State Farm Park

State Farm Park

State Farm Downtown Building

About the Bloomington/Normal Area Culture/Arts/History

Culture/Arts/History

Culture/Arts/History

Education

Education

Education

Education

Education

Around the Town

Around the Town

Around the Town

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