We keep losing billions of dollars, our best employees, and over 900,000 customers. The profits from the stock market have been propping up our financial results, but this cannot be counted on forever. At some point the operation must stand on it's own financial feet, and I don't see that happening.... so, when do we finally go bankrupt?
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I suppose it's a good thing we are "twice the size of our nearest competitor" because we lost as many policies as were written in 2017 PLUS over 900,000 more policies... and our service is so bad we are still losing more than we write in 2018. These changes would receive far more support from the work force IF THEY ACTUALLY WERE MAKING US MORE SUCCESSFUL.
Never - now that we got rid of the dead weight
So you've been terminated?
Never - now that we got rid of the dead weight
Market leader as it relates to insurance is defined by written premium. Written premium represents both newly written policies as well as renewal policies. This data is collected and published by independent 3rd parties by analyzing each companies financial statements on file with departments of insurance. If you look at Auto, or Homeowners or both together with ancillary lines known as P&C you can clearly see SF dominates and dwarfs the competition in auto , home or on a P&C basis. In fact SF is nearly TWICE the size of its nearest competitor on an all in P& C basis.
-2jid is right. Let’s not kid ourselves. Who says we are the market leader? Where are you finding that reference? We lost being a market leader and given our sad state of affairs and brainless braintrust we have leading us in ET we have a snowballs chance in hell of ever achieving it again.
An acquiring company would be in the market for our book of business, operations, and data. Not our investments.
Amazing how little understanding employees have of how the business of insurance works. The bull market has lasted so long people must think it will never end. There are cycles. I'm not saying we'll go bankrupt, but it's already happened once during my career. But, on the Fire side. If the market stays sideways or even down 5 or 10 percent, and we continue to lose 10 billion in underwriting losses each year, then throw in a major hurricane....or 3...maybe another 10 billion or more, then picture that three years in a row...the 90 billion becomes 40 or 50, and we haven't really fixed any of these problems that caused all this. Don't pretend we're invincible.
It would be quite a company that could pony up 400 Billion or more....regarding investments DP was referring to those associated with Bank, not the entire company.
There are companies large enough to acquire state farm. The problem is that they are foreign multi-nationals, and I don't believe U.S. law would allow such a buyout as it is currently written. Of course, I'd leave that to the lawyers of each company to sort out.
False....DP said in the video yesterday cutting 366 people that investments have not panned out for State Farm. The glue holding the ship together was the investments.
This time next year SF will have over 100 Billion in surplus multiples of that in assets and zero debt. At some point they could theoretically relinquish their market leader status but even that would be 20 years from now at the earliest, but they will not go bankrupt. Their investments, some prescribed by statute, are structured to perform moderately well even if the market tanks. They are not a public company so a takeover is impossible and there is literally no Company large enough to purchase them in their entirety. They are going to around for a long, long time.
How many years of continued surplus growth before people on this thread projecting bankruptcy realize they’re delusional and actually know nothing? While you’ve convinced yourself the sky is falling, there has been very little media interest in SF’s “imminent demise” outside of BN.
1-Kev anybody and anything can go bankrupt. In fact it usually happens quite quickly after a long, slow declIne. Things just tend to fall off a cliff. These drastic cuts will actually help shore up the company’s Finances. But it remains to be seen whether it makes any difference in the long run. It might be too late. Certainly State Farm is not going to be the industry leader much longer. “Soon” we’ll be 2nd or 3rd... although even that won’t happen for a while.
Except the executives will get bored after torching operations and will decide to invest everything in the modern day equivalent of junk bonds. Because their incompetence knows no bounds.
Assuming current results trend onward and assuming the stock market trends as it has the past 100 years, even after adjusting for inflation, State Farm will literally never go bankrupt.
I think SF is already past the point of no return. Seems like they are failing and desperate and keep making rash decisions like cutting employees. When you already s--- at customer service cutting employees isn't the answer. SF is still way behind the times. While they are moving everything in 4 locations and cutting jobs other up and coming companies are spreading out into cities and making their presence known. While SF is putting all employees in 4 locations other companies are allowing workers from home. We are always behind the times. Other companies are trying work life balance and if you are sick work from home or if you have something going on like an apt. Work from home. While we are now an assembly line giving points. SF is no longer a career. It's just a job. Even if they do ever get cheap enough to compete their reputation is very damaged. I doubt they will ever be profitable in the insurance business again. By u cut enough experience and expenses I guess they can make the books showith something not real.
Do you mean financially or morally?
With Tipsy in charge we'll be closing shop within 10 years. There's no way he lasts that long though.