Farmers Insurance Group

Farmers Insurance Group

Industry	Insurance
Founded	Los Angeles, California, U.S. (1928 (1928))
Founder(s)	Thomas E. Leavey John C. Tyler
Headquarters	Los Angeles, California, United States
Area served	U.S.
Key people	Jeff Dailey, CEO, Farmers Group, Inc.
Services	Insurance and Other Financial Services
Divisions	Farmers Insurance Foremost Insurance 21st Century Insurance Farmers Life
Website	http://www.farmers.com/

Airship with Farmers logo operated by Airship Ventures at Willow Run Airport

The Farmers Insurance Group®, the Farmers Insurance Group of Companies® and Farmers® are all trade names that refer to a group of insurance companies that provide homeowners insurance, auto insurance, commercial insurance, life insurance and other financial services throughout the United States. Together, these companies comprise the third largest provider of both private passenger auto and homeowners insurance in the United States servicing over 10 million households with more than 20 million individual policies across all 50 states through the efforts of over 50,000 exclusive and independent agents and nearly 24,000 employees.

Structure

• The Farmers Exchanges, headquartered in Los Angeles, CA, are three reciprocal insurers or inter-insurance exchanges (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange) owned by their policyholders. The Farmers Exchanges, directly or through their subsidiaries and affiliates, offer homeowners insurance, auto insurance, commercial insurance, and financial services throughout the United States. Farmers Group, Inc. (dba Farmers Underwriters Association) and its subsidiaries, Truck Underwriters Association and Fire Underwriters Association, provide certain non-claims administrative services for the Farmers Exchanges as their attorneys-in-fact. The Farmers Exchanges do not hold an ownership interest in Farmers Group, Inc., and neither Farmers Group, Inc. nor its ultimate parent, Zurich Financial Services Ltd., a Swiss company, holds an ownership interest in any of the Farmers Exchanges.
• The Foremost® Insurance Group, headquartered in Grand Rapids, Michigan, is a group of companies that primarily insure specialty products such as mobile homes, motor homes, travel trailers and specialty dwellings, motorcycles, off-road vehicles, boats and personal watercraft. It was founded in 1952 and was acquired by the Farmers Exchanges in March 2000. The Foremost companies are subsidiaries of the Farmers Exchanges.
• The Bristol West® Insurance Group became a part of Farmers in July 2007. In 1973, it began providing private passenger auto insurance to residents in Florida and now provides liablity and physical damage insurance - focusing exclusively on private passenger vehicles - across the United States. The Bristol West companies are subsidiaries of the Farmers Exchanges.
• 21st Century Insurance®, headquartered in Wilmington, Delaware, became a part of Farmers in July 2009. Using the internet and direct response marketing channels, 21st Century markets personal auto insurance to consumers throughout the United States. The 21st Century Insurance companies are subsidiaries of the Farmers Exchanges.
• Farmers New World Life Insurance Company® started as Catholic Life Insurance Company in Spokane, Washington in 1910. Later that year it was renamed New World Life Insurance Company. In 1953, it was acquired by Farmers Group, Inc. In 1954, its name was changed to the current Farmers New World Life Insurance Company. Farmers New World Life Insurance Company is now based in the Seattle suburb of Mercer Island, Washington. It offers flexible universal life insurance, traditional term life insurance, whole life insurance and annuities. Farmers New World Life Insurance Company is a subsidiary of Farmers Group, Inc.
• Farmers Financial Solutions, LLC. was created by the Farmers Exchanges in 2000 to provide financial products to customers.

Products

• Auto insurance
• Home insurance, including homeowners, condominium and renters insurance, mobile and manufactured home insurance, specialty home insurance, including landlord and rental properties, seasonal homes, and vacation homes, and flood insurance through the National Flood Insurance Program
• Motorcycle insurance
• Life insurance, including term, whole and universal life insurance
• Recreational insurance, such as insurance for boats, ATVs, RVs, and travel trailers
• Business insurance for small and medium sized businesses, such as liability and property insurance, commercial auto and workers compensation insurance for apartment and commercial property owners, artisan contractors, condominium homeowner associations, offices, religious organizations, educational and non-profit organizations, and other businesses in the light manufacturing, service, restaurant, retail, wholesale, and auto service & repair industries
• Financial services and products, such as mutual funds and variable annuities

Farmers Field

• On February 2011, Farmers announced that it has agreed to sponsor a football stadium in the city of Los Angeles. This stadium will be located downtown, close to the Staples Center. The contract was signed for 30 years, and its estimated cost is $700 million. This deal starts with $20 million for the first year, and then eventually increases. This stadium is planned to be named as “Farmers Field”. Even though Los Angeles does not officially own a football team yet, the NFL has given their approval to build the stadium.

History

1922

Future co-founders John C. Tyler and Thomas E. Leavey first meet when Tyler moves to California.

1927

Tyler and Leavey had both grown up with rural backgrounds and believed that farmers and ranchers, who had better driving rates than urbanites, deserved lower insurance premiums. During the 1920s, farmers across the United States were establishing their own mutual insurance firms and cooperatives in order to have less expensive policies. Tyler, the son of South Dakotan insurance salesman, and Leavey, who had formerly worked for the Federal Farm Loan Bureau and the National Farm Loan Association, recognized that these farmers, ranchers, and other rural drivers were an overlooked market and wished to create their own auto insurance firm. After receiving a loan from the founder of Bank of America, they were able to start their company.

1928

Tyler and Leavey open the doors to their newly founded company, Farmers Automobile Inter-Insurance Exchange, in downtown Los Angeles, California. Tyler served as president with Leavey as vice president. A sales manager and secretary completed the four-employee team.

On March 28, 1928, the first meeting of the board of governors is convened. Two days later, Charles Brisco insures his 1925 Cadillac Phaeton and becomes the first Farmers customer.

1935

Truck Insurance Exchange, a new reciprocal insurer, is launched to specialize in truck insurance.

1936

Farmers Insurance Exchange is "named the leading reciprocal in earned premiums for auto insurance by National Underwriter."

1942

Fire Insurance Exchange, the third reciprocal insurer, is launched to specialize in home insurance.

1950

Mid-Century Insurance Company becomes a subsidiary of the Farmers Insurance Exchange. Aside from the insurance coverage provided by the original three exchanges, Mid-Century offers insurance coverage for Inland Marine, robbery, burglary, personal lines, plate glass, selected bonds, and floaters.

1953

Seattle-based New World Life Insurance Company is acquired by Farmers Group, Inc.

1959

Farmers begins annual participation in the Pasadena Rose Parade, launching its involvement in parades and community events nationwide.

1973

John C. Tyler dies at the age of 86. Thomas E. Leavey, the remaining co-founder, takes the CEO position.

1978

Thomas E. Leavey retires.

1988

After an eight-month takeover battle, BATUS Inc., the American subsidiary of British conglomerate B.A.T. Industries Plc, acquires Farmers Group, Inc. for $5.2 billion and becomes the sole stockholder of the company's 68 million shares of common stock.

1989, 1991, and 1994

Multiple, large-scale disasters pose financial challenges to Farmers Insurance. The 1989 San Francisco earthquake, 1991 Oakland fire, and 1994 Northridge, California, earthquake were the three most significant disasters. It was estimated that the losses from the Northridge earthquake alone were $1.3 billion.

1998

September 1998, the Zurich Financial Services Group is created from the merger with the financial services business of B.A.T. Industries through a dual holding structure.

2000

In March 2000, the Farmers Exchanges acquire Foremost Corporation of America (Foremost Insurance Group), a leading writer of manufactured homes and a prominent insurer of recreational vehicles, boats and other specialty lines.

In August 2000, Farmers Financial Solutions registers with the U.S. Securities and Exchange Commission as a broker-dealer. Through it, Farmers begins offering mutual fund and variable insurance products.

In October 2000, the Zurich structure is simplified and unified under a single Swiss holding company. Allied Zurich and Zurich Allied shares are replaced by shares of the newly incorporated Zurich Financial Services with a primary listing on SWX Swiss Exchange (ticker symbol: ZURN) and a secondary listing in London. Zurich Financial Services American Depositary Receipts (ADRs) are traded on the American Stock Exchange.

2007

In July 2007, the Farmers Exchanges acquire Bristol West Holdings, Inc., the parent of a group of insurers specializing in non-standard auto insurance, which provides insurance coverage for drivers whose driving records or other problems make obtaining insurance difficult.

2009

In April 2009, the Farmers Insurance Group announced that it will acquire 21st Century Insurance for 1.9 billion dollars from its competitor AIG. This put Farmers in a dead heat for third largest personal lines insurer in the US.

Accolades

Natural disasters

• In 2005, after Hurricane Rita hit Beaumont, Texas, leaving it without power, Farmers Insurance brought in almost 300 insurance adjusters to assess exterior property damage in order to expedite the reconstruction effort, provided $100,000 for the emergency operations center, and two badly needed megawatt electric generators.

• During the October 2007 California wildfires, Farmers Insurance was one of only a few companies to set up facilities to aid their customers. In addition to writing checks for evacuation costs, damage claims, lodging and meals, the company ran commercials urging their customers to take advantage of these facilities. The company now also has 2 buses serving as Mobile Command Centers, This mobile claim center arrived at the Qualcomm Stadium only two days after the fires started.

See also

• Zurich Financial Services

External links

• Farmers Insurance Group - official web site