State Farm is America's biggest home and auto insurance group. Still operating as a mutual association of separate companies, it covers approximately one out of every five cars in the US, and close to the same percentage of homes. In a fiercely competitive market, State Farm has for many years attempted to differentiate itself from its rivals through a "good neighbor" policy, leaning heavily on its heritage of fair dealing and promoting a spirit of mutual trust between the company and its customers. However, three consecutive years of underwriting losses finally forced it to raise premiums in late 2010 and 2011. There was a similarly huge rise in payouts in 2016 and again in 2017, but State Farm has begun lowering premiums in several cases to maintain competitiveness. For 2019, State Farm was once again the biggest property & casualty insurer in the US by cover, with premiums written of $65.6bn, almost 50% higher than its closest competitor (Geico/Berkshire Hathaway). Homeowners premiums of $18.7bn were equivalent to almost 18% market share, and more than double second-placed Allstate. Private passenger auto premiums were $40.9bn. Combined revenues including income from investments were $79.4bn, with net earnings of $5.6bn. State Farm had around 82m insurance policies in-force, more than half of them for auto. However, after dabbling for several years in general financial services, the association announced plans to withdraw from that segment in 2020, agreeing an alliance instead with US Bank. The latter will gradually assume control of State Farm's 2m or so consumer savings and credit card accounts, but the insurer's team of 19,000 sales agents will be able to market US Bank services to their insurance customers. In 2021, State Farm made its first ever acquisition, with a deal to absorb Gainsco, a specialist in non-standard minimum-limit auto insurance, for $400m. Michael Tipsord is chairman & CEO. The company's advertising has traditionally been divided between mainstream spots featuring actual State Farm agents in lightly comic situations or, increasingly, a series featuring NBA star Chris Paul and a collection of other well-known athletes in supporting roles. In these spots, "Jake from State Farm" is now played by an actor, though he was originally played by a real-life agent.
Capsule checked 22nd January 2021
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Who are the competitors of State Farm? State Farm's main insurance rivals are Allstate, Geico, Zurich/Farmers, Progressive, Liberty Mutual and Nationwide. See Financial & Insurance Sector for other companies
Historical profile information for State Farm
Adbrands Social Media 17th Oct 2018: "Robo-Agent". The latest in Translation's long-running ad series for US insurer State Farm is actually pretty freaky (in a good way of course). This series has evolved somewhat from the days when NBA star Chris Paul had a supposed twin brother who grew up to be a State Farm insurance agent; one just as good with an "assist" as Paul on the court. The twin has left the series, replaced by fellow NBA hero James Harden, and the agent is now portrayed by actor Oscar Nunez. Judging by previous ads in the series, Nunez actually rooms with these guys, offering everyday insurance advice and assistance. Like you'd actually want such a thing every day. But this time there's another "twin" in town, and it's rather more disturbing than the real Oscar Nunez.
Adbrands Social Media 10th Aug 2018: "The Good Life". DDB Chicago and State Farm's other agencies churn out dozens of ads for the auto insurer each year and the results can be a bit hit and miss. As a perfect example, there are two new spots out today. One features a guy fantasising he's a secret agent while he thinks about getting a car loan from State Farm. That's the miss. But this one is a veritable hit, helped by a laugh-out-loud final reveal. Ah, the Good Life! It's never what it's cracked up to be...
Adbrands Weekly Update 4th Jan 2018: Ads of the Week: "Don't You". A commendable and sobering reminder from insurer State Farm that charity shouldn't just be for Christmas. Homeless Americans just about got through the holidays with help from our seasonal goodwill; but they will still be homeless this month, and still need our assistance. DDB Chicago does a fine job of getting the message across in support of State Farm's community initiative Neighborhood of Good.
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