FINANCIAL STATEMENTSFINANCIAL STATEMENTS
• Operating Statement
• Statement of Assets and Liabilities
GAAP vs. Statutory AccountingGAAP vs. Statutory Accounting
OPERATING STATEMENTSOPERATING STATEMENTS
Earned Premiums (Sales)- Losses (Cost of Goods Sold)- Operating Expenses---------------------------------------------= Underwriting Profit/Loss+/- Investment Income---------------------------------------------= Operating Net Income
STATEMENT OF ASSETS AND LIABILITIES
Admitted vs. Non-Admitted
STATEMENT OF ASSETS AND LIABILITIES
Admitted vs. Non-Admitted
Premium Receivables+ Investment Assets- Loss Reserves- Unearned Premiums- Operating Liabilities---------------------------------------------= Policyholder Protection Fund
STATE FARM PRODUCT LINESSTATE FARM PRODUCT LINES
Auto
Health
Fire
Life
Financial ServicesSF BankMutual Funds
INDUSTRY SCOPEINDUSTRY SCOPE
• 7,200 domestic insurance companies
• 2.3 million jobs
• $3.4 trillion assets
• $900 billion premiums
Source Insurance Information Institute 2000 Fact book
STATE FARM’S INDUSTRY POSITION
• Ranked #25 within Fortune 500• #1 U.S. Auto insurer since 1942
• Insure 1 of every 5 automobiles• Met goal - 40 million Auto policies by 2003
• #1 U.S. Home insurer since 1964• Insure 1 of every 4 homes• Top U.S. insurer of pleasure boats
ACCOUNTING STRUCTUREACCOUNTING STRUCTURE
• Centralized vs. De-centralized– Corporate
– Zone Offices
– Insurance Support Centers (ISC’s)
• Supervisory vs. Analytical
CORPORATE FUNCTIONSCORPORATE FUNCTIONS
• Financial Reporting & Analysis
• Tax
• Investment Accounting
CORPORATE FUNCTIONSCORPORATE FUNCTIONS
• Accounting Benefits
• Loss Reserves
• Data Management Services
CORPORATE FUNCTIONSCORPORATE FUNCTIONS
• Financial Shared Services
– Accounts Payable
– Agency Compensation
– Employee Compensation
– Travel & Expense
– Shared Services Process Analysis
SYSTEMSSYSTEMS
• Financial Business Analyst– Current Systems Support– New Systems Development– Create and maintain detailed operating
procedures
ZONE OFFICE FUNCTIONSZONE OFFICE FUNCTIONS
• Premium Payment Processing
• Cash Disbursements / Claims Support
• Agency Compensation
• Self Audits
• Transformational / Expense Analysis
• People Skills
• Organization & Planning
• Problem Solving
• Time Management
• Communication
• Coordination
GENERAL DUTIESGENERAL DUTIES
SPECIFIC DUTIESSPECIFIC DUTIES
Analysts
• Project Development
• Operational Assistance
• Functional Area of Expertise
Supervisors
• Performance Management
TECHNICAL TRAININGTECHNICAL TRAINING
• On-Line Operating Procedures
• Hardware and Software– PeopleSoft Application– Microsoft– Numerous proprietary applications
• Supervisory Skills– CD-ROM Leadership Development Series
PROFESSIONAL DEVELOPMENT
PROFESSIONAL DEVELOPMENT
• In-House Courses
• Insurance Education
–ChFC, CLU, CPCU
• Professional Designations
–CPA, CMA, MBA
CAREER PATHSCAREER PATHS
StabilityStability
DiversityDiversity
OpportunityOpportunity
MobilityMobility
IDEAL CANDIDATESIDEAL CANDIDATES
• Accounting majors with a minimum of 9 hours of CIS/MIS
• Finance and Other majors with a minimum of 9 hours of Accounting and 9 hours of CIS/MIS
• CIS/MIS majors with a minimum of 9 hours of Accounting
• “B+” GPA overall and in major
IMPORTANT TRAITSIMPORTANT TRAITS
Real world experiences
Technical skills GPA Leadership
qualities Personal
presentation Attitude Ability to learn
Problem analysis and analytical thinking
Customer service orientation
Adaptability, drive and initiative
Proven track record
Passion for work
BENEFITSBENEFITS
• Medical and Life Insurance
• Defined-Benefit Retirement Plan
• Profit Sharing (401K match)
• Education Costs
• Flexible Work Hours
STATE FARM DATASTATE FARM DATA• 19 Affiliated Companies• Mutually owned company• 71.6 million policies in force• $117 billion in
Assets (12/31/01)• State Farm Associates
– 16,500 Agents– 78,155 Total Employees
• About 2,000 Accounting Employees
Source August 2002 People Counts