Farmers Insurance Group
 |
|
| Industry | Financial services |
|---|---|
| Founded | 1928 (Los Angeles) |
| Founder | Thomas E. Leavey |
| Headquarters |
4680 Wilshire Boulevard Los Angeles, California, United States |
|
Area served
|
United States |
|
Key people
|
Jeff Dailey (CEO) |
| Services | Insurance, other financial services |
| Divisions | Farmers Insurance Foremost Insurance Bristol West Insurance 21st Century Insurance Farmers Life |
| Website | http://www.farmers.com/ |
Farmers Insurance Group (informally Farmers) is an American insurer group of automobiles, homes and small businesses and also provides other insurance and financial services products. Farmers Insurance has more than 50,000 exclusive and independent agents and approximately 22,000 employees.
Farmers' future co-founders John C. Tyler and Thomas E. Leavey first met after Tyler moved to California. 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.
Tyler and Leavey received a loan from the founder of Bank of America, enabling them to start their company.
Tyler and Leavey opened 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 was convened. Two days later, Charles Brisco insures his 1925 Cadillac Phaeton and becomes the first Farmers customer.
Truck Insurance Exchange, a new reciprocal insurer, was launched to specialize in truck insurance.
Farmers Insurance Exchange was named the leading reciprocal in earned premiums for auto insurance by National Underwriter.
Fire Insurance Exchange, the third reciprocal insurer, was launched, specializing in home insurance.
Mid-Century Insurance Company became a subsidiary of the Farmers Insurance Exchange. Aside from the insurance coverage provided by the original three exchanges, Mid-Century offered insurance coverage for Inland Marine, robbery, burglary, personal lines, plate glass, selected bonds, and floaters.
Seattle-based New World Life Insurance Company was acquired by Farmers.
Farmers began annual participation in the Pasadena Rose Parade, launching its involvement in parades and community events nationwide.
John C. Tyler died at the age of 86. Thomas E. Leavey, the remaining co-founder, took the CEO position.
Thomas E. Leavey retired.
After an eight-month takeover battle, BATUS Inc., the American subsidiary of British conglomerate B.A.T. Industries Plc, acquired Farmers Group, Inc. for $5.2 billion and becomes the sole stockholder of the company's 68 million shares of common stock.
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Wikipedia