1. State Farm Insurance Companies

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

3. Why Have Insurance?

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

5. Types of Insurance Property Casualty Life Health

6. 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

7. “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.

8. 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.

9. 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

10. 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

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

12. Regulation Highly Regulated By the States

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

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

15. State Farm Corporate Building

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

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

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

19. Corporate Atrium

21. Zone Structure

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

23. Corporate South Complex

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

25. Corporate South Complex

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

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

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

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

30. Career Paths Diversity Opportunity Mobility

31. 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

32. 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

33. 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:Subsidized Housing State Farm provides assistance in locating housing in the Bloomington/Normal community

34. 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

35. 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

36. State Farm Corporate

37. State Farm Park

40. State Farm Downtown Building

41. About the Bloomington/Normal Area Culture/Arts/History

42. Culture/Arts/History

44. Education

49. Around the Town

52. Any Questions?