State Farm Insurance
History
State Farm is a massive group of insurance companies spread across the United States and headquartered in Bloomington, Illinois. And in the United States, State Farm is the largest auto insurance and property and casualty insurance provider. It is ranked 36th in the Fortune 500 list 2019. The company relies on special agents and nominates exclusive agents to sell its insurance. Their registered agents, called captive agents, can only sell State farm insurance and can sell State farm products. Initially, State Farm used to sell insurance policies, but later it expanded its operations and entered the financial services arena, like banking and mutual funds.
It opened a bank, State Farm Financial Services, FSB, and a State Farm Mutual automobile insurance company, operated. The company offers home mortgages over the phone or through agents nationwide.
State Farm was founded by a retired farmer George J. Mecherle in June 1922. It was then a mutual automobile insurance company owned by its policyholders. Initially, the company specialized in auto insurance for farmers and later expanded services into other insurance services.
Until 2017, State farm had 70,000 employees and 19000 agents. February 2014 figures show the group servicing 80 million policies in the United States and Canada, out of which 44000,000 are for automobiles, 27,000,000 for fire, and 7,000,000 for life. The company logo displays its role and the type of insurance services. The company created its tri-oval logo in the mid-to-late 1940s and 1953. In partnership with several U.S. highway authorities, State Farm Safety Patrol operates a service that provides free roadside assistance to stranded motorists on participating highways. State Farm has also announced a green mission to lead by example in environmental philanthropy under CEO Michael L. Tipsord. However, a non-profit organization, Ceres, found that State Farm invests billions of dollars in financing fossil fuel companies.
Market share and Current Stage
With a 16% overall market share, State Farm is the nation's largest auto insurance provider and the second-largest provider of life insurance.
Its target market is individuals, home buyers, auto buyers, and mutual fund investors. When it comes to minimum coverage policy, the Company State Farm is 46% cheaper than its competitor. Drivers who have poor credit may get the most comparable deal with Farmers. It is the country's number one auto insurance company in terms of market share and premiums written. This Company included approximately 58 000 employees and was ranked 36th on the Fortune 500 list of largest Companies too.
As of Jan 2023, the Company's market cap is $36.66B. One can calculate Market cap/market value or market capitalization by multiplying the current stock price and the number of shares outstanding. A volatile year may delay the state farm from losing the title of the nation's top insurer. With a share of approximately 16% of the U.S. auto insurance market State Farm will fall behind Geico and Progressive as the top auto insurer in the nation. Overall, the Company serves as the largest property and auto insurance provider in the United States. It provides all the coverage types needed in various states.
Competitor Analysis
The insurance Company State Farm has competitive rates and ranks No. 3 in the Cheapest Car Insurance Companies rating. On average State, Farm customers pay $1,267 a year for coverage, less than the national average of $1,442.
State Farm Insurance competitors include Farmers Insurance, Liberty Mutual Insurance, GEICO, American Family Insurance, and Allstate. The Company ranks 4th in Customer Net Promoter Score Comparably to its competitors. For more, visit: https://www.comparably.com/companies/state-farm/competitors.
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Company Name
State Farm Insurance
Head Quarter
Bloomington, Illinois, United States
Founders
George J. Mecherle
CEO
Michael L. Tipsord
Inception Date
June 7, 1922
Total assets
US$294.82 billion (2019)