State Farm Insurance Companies

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

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 % Market Share at end of 2004 Almost 40 million Auto policies #1 U.S. Home insurer since % 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 Statutory Emphasis is on Insolvency Not All Company Assets Are “Admitted” States Perform Various Insolvency Tests From Financial Statements GAAP vs. Statutory Accounting

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

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

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

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:Subsidized Housing State Farm provides assistance in locating 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 Need more information? Visit our website!

State Farm Corporate

State Farm Park

State Farm Downtown Building

About the Bloomington/Normal Area Culture/Arts/History

Culture/Arts/History

Education

Around the Town

Any Questions?