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, ChFC, 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
Any Questions?