American Family Insurance (aka AmFam) is a private mutual company that focuses on property, casualty and auto insurance, but also offers commercial insurance, life, health, and homeowners coverage, as well as investment and retirement-planning products. A Fortune 500 company, its revenues for 2008 were over $6.7 billion.
The American Family Insurance history is a remarkable story that started with a single idea. A struggling insurance salesman named Herman Wittwer believed a company could make money selling auto insurance to Wisconsin farmers. Herman understood that farmers presented lower risks compared to city drivers because they drove less often and put their cars up on blocks for the winter. Armed with this customer knowledge, Herman confidently opened the doors of Farmers Mutual Automobile Insurance Company on Oct. 3, 1927.
Over the years, our market grew from rural areas to small towns, suburbs and metropolitan areas. Our customers’ needs also changed, and we changed right along with them by expanding our products and services. Our company’s name changed in 1963 to American Family Mutual Insurance Company to reflect a broader customer base.
American Family Insurance offers auto, home, life & annuities1, health, business and farm & ranch insurance. We’ve expanded geographically, too. Currently, we operate in 19 states spanning from Washington to Ohio.
Our customer relationships have helped us build a strong and stable company with more than $4.8 billion in policyholder equity. As a mutual company, our customers and owners are one in the same. Our success is measured not by the rate of return for shareholders, but by the value we provide our policyholders.
We have been in business for more than 80 years, and we aren’t stopping there. We remain committed to being the most trusted and valued service-driven insurance company.
In 1989 American National's annual revenues exceeded $1 billion for the first time, and one year later the company's insurance in force topped $30 billion. Pushing sales upward during the early 1990s were acquisitions of life insurance business and a marketing diversification program. In 1990 ANTEX significantly expanded its direct policy writing activities after entering into the association group health market, with health, accident, and hospitalization coverage offered under an agreement with an outside sales agency and group polices sold through the National Business Association.
In 1990 American National also acquired American Security Life Insurance Company, a Texas life insurer licensed in 31 states. American Security Life was sold the following year after American National assumed the former company's insurance portfolio.
In 1991 Robert Moody assumed the additional duties of chief executive officer. That year the company expanded its investment fund sales channels when SM&R began a new marketing program and expanded its distribution outlets to include banks, savings and loan associations, and credit unions. In an effort to broaden its insurance sales force, in 1992 American National began recruiting noncareer insurance agents, association groups, bank affiliates, auto dealers, and other groups to sell its insurance products.
In June 1992, American National expanded its distribution channels further, paying $41.1 million to acquire Garden State Life Insurance Company, a direct-response insurance company based in New Jersey. Licensed to do business in 49 states, Garden State's activities included television and direct mail marketing of term life insurance policies with a face amount of $100,000 or more.
In large part as a result of its increasingly diversified sales and marketing efforts, in 1992 American National saw significant financial gains. In July 1992, American National sold the insurance portfolio of Commonwealth Life and Accident Insurance Company for $14.2 million. Net income for the year rose $40 million to $168 million, and revenues increased better than ten percent, climbing from $1.1 billion to $1.3 billion. Assets exceeded the $5 billion mark for the first time in 1992, and life insurance in force swelled by almost 20 percent, climbing to more than $37 billion.
American National entered 1993 having paid annual dividends for 82 consecutive years and having raised its dividend 19 straight years. In terms of industry measuring sticks, in 1993 the company received A.M. Best Company's top rating (A-double-plus) and held $156 in assets for every $100 in liabilities, which was one of the better assets-to-liability ratios in the insurance field.
The company had begun expanding its sales of annuities in the early 1990s, marketed in large part through third parties, and this area became a strong source of revenue over the next several years. In 1994 Garden State began to explore offering life insurance policies to customers of credit card companies and banks, with the first sales taking place in the fall of 1995. Initial sales were modest, however, and Garden State's overall revenues were stagnant during the mid- to late-1990s. Garden State introduced a new form of Critical Illness health insurance in late 1997, which the company expected to bring revenues back up.
Sales of health insurance for American National and its subsidiaries declined during the mid-1990s with the company's restructured home service division in fact discontinuing sales of major medical insurance policies altogether. American National's field agent force had been halved during an eight-year period beginning in the late 1980s, with only 2,200 licensed agents left by 1998. Sales of life insurance policies now were increasingly being made by the company's multiple line, rather than single line, agents.
The Standard Life and Accident subsidiary, which primarily offered medicare supplement insurance policies, also had seen a decline in sales since the early 1990s, though a number of new products were added in 1995-96. Four-fifths of Standard's net premiums still consisted of this "medigap" coverage, however, and this market was highly vulnerable to changes in state and national health insurance laws. Standard made moves to diversify, seeking increasing life and annuity sales.
American National's bread and butter remained life insurance, and this area continued to contribute more than 70 percent of the company's earnings. Life insurance in force totaled $43.8 billion in 1997, with the company's overall consolidated assets standing at $8.5 billion. Net income for the fiscal year 1997 was up 15 percent from 1996, to $248 million, with stockholder dividends increased yet again. A.M. Best Company's ratings were still A-double-plus, or "Superior."
As the year 2000 approached, the company's outlook appeared to be quite solid. Conservative by nature, with the life insurance business remaining primarily stable and predictable, there appeared to be few major obstacles to continued prosperity. As a result of its diversified sales force and marketing techniques, which had been expanded substantially in the 1990s, American National expected to reap continued growth in revenues and assets. It remained guardedly optimistic about the ramifications of potential national health care programs on health insurance premiums and the company's overall operations. The heirs of founder William Moody, through the Moody Foundation and The Libbie S. Moody Trust, continued to control more than 61 percent of the company as it neared the end of its first century in business.
Principal Subsidiaries: American National Life Insurance Company of Texas; Garden State Life Insurance Company; Standard Life and Accident Insurance Company; American National Property and Casualty Insurance Company; American National General Insurance Company; American National Lloyds Insurance Company; ANREM Corporation; Securities Management & Research, Inc.
Principal Divisions: Home Service; Multiple-Line; Independent Markets; Group Insurance; Individual Health; Credit Insurance.
Statistics:
Public Company
Incorporated: 1905
Employees: 6,900
Sales: $1.74 billion (1997)
Stock Exchanges: NASDAQ
Ticker Symbol: ANAT
SICs: 6311 Life Insurance; 6321 Accident & Health Insurance; 6331 Fire, Marine & Casualty Insurance; 6351 Surety Insurance; 6324 Hospital & Medical Service Plans; 6282 Investment Advice
Address:
One Moody Plaza
Galveston, Texas 77550
U.S.A.
The American Family Insurance history is a remarkable story that started with a single idea. A struggling insurance salesman named Herman Wittwer believed a company could make money selling auto insurance to Wisconsin farmers. Herman understood that farmers presented lower risks compared to city drivers because they drove less often and put their cars up on blocks for the winter. Armed with this customer knowledge, Herman confidently opened the doors of Farmers Mutual Automobile Insurance Company on Oct. 3, 1927.
Over the years, our market grew from rural areas to small towns, suburbs and metropolitan areas. Our customers’ needs also changed, and we changed right along with them by expanding our products and services. Our company’s name changed in 1963 to American Family Mutual Insurance Company to reflect a broader customer base.
American Family Insurance offers auto, home, life & annuities1, health, business and farm & ranch insurance. We’ve expanded geographically, too. Currently, we operate in 19 states spanning from Washington to Ohio.
Our customer relationships have helped us build a strong and stable company with more than $4.8 billion in policyholder equity. As a mutual company, our customers and owners are one in the same. Our success is measured not by the rate of return for shareholders, but by the value we provide our policyholders.
We have been in business for more than 80 years, and we aren’t stopping there. We remain committed to being the most trusted and valued service-driven insurance company.
In 1989 American National's annual revenues exceeded $1 billion for the first time, and one year later the company's insurance in force topped $30 billion. Pushing sales upward during the early 1990s were acquisitions of life insurance business and a marketing diversification program. In 1990 ANTEX significantly expanded its direct policy writing activities after entering into the association group health market, with health, accident, and hospitalization coverage offered under an agreement with an outside sales agency and group polices sold through the National Business Association.
In 1990 American National also acquired American Security Life Insurance Company, a Texas life insurer licensed in 31 states. American Security Life was sold the following year after American National assumed the former company's insurance portfolio.
In 1991 Robert Moody assumed the additional duties of chief executive officer. That year the company expanded its investment fund sales channels when SM&R began a new marketing program and expanded its distribution outlets to include banks, savings and loan associations, and credit unions. In an effort to broaden its insurance sales force, in 1992 American National began recruiting noncareer insurance agents, association groups, bank affiliates, auto dealers, and other groups to sell its insurance products.
In June 1992, American National expanded its distribution channels further, paying $41.1 million to acquire Garden State Life Insurance Company, a direct-response insurance company based in New Jersey. Licensed to do business in 49 states, Garden State's activities included television and direct mail marketing of term life insurance policies with a face amount of $100,000 or more.
In large part as a result of its increasingly diversified sales and marketing efforts, in 1992 American National saw significant financial gains. In July 1992, American National sold the insurance portfolio of Commonwealth Life and Accident Insurance Company for $14.2 million. Net income for the year rose $40 million to $168 million, and revenues increased better than ten percent, climbing from $1.1 billion to $1.3 billion. Assets exceeded the $5 billion mark for the first time in 1992, and life insurance in force swelled by almost 20 percent, climbing to more than $37 billion.
American National entered 1993 having paid annual dividends for 82 consecutive years and having raised its dividend 19 straight years. In terms of industry measuring sticks, in 1993 the company received A.M. Best Company's top rating (A-double-plus) and held $156 in assets for every $100 in liabilities, which was one of the better assets-to-liability ratios in the insurance field.
The company had begun expanding its sales of annuities in the early 1990s, marketed in large part through third parties, and this area became a strong source of revenue over the next several years. In 1994 Garden State began to explore offering life insurance policies to customers of credit card companies and banks, with the first sales taking place in the fall of 1995. Initial sales were modest, however, and Garden State's overall revenues were stagnant during the mid- to late-1990s. Garden State introduced a new form of Critical Illness health insurance in late 1997, which the company expected to bring revenues back up.
Sales of health insurance for American National and its subsidiaries declined during the mid-1990s with the company's restructured home service division in fact discontinuing sales of major medical insurance policies altogether. American National's field agent force had been halved during an eight-year period beginning in the late 1980s, with only 2,200 licensed agents left by 1998. Sales of life insurance policies now were increasingly being made by the company's multiple line, rather than single line, agents.
The Standard Life and Accident subsidiary, which primarily offered medicare supplement insurance policies, also had seen a decline in sales since the early 1990s, though a number of new products were added in 1995-96. Four-fifths of Standard's net premiums still consisted of this "medigap" coverage, however, and this market was highly vulnerable to changes in state and national health insurance laws. Standard made moves to diversify, seeking increasing life and annuity sales.
American National's bread and butter remained life insurance, and this area continued to contribute more than 70 percent of the company's earnings. Life insurance in force totaled $43.8 billion in 1997, with the company's overall consolidated assets standing at $8.5 billion. Net income for the fiscal year 1997 was up 15 percent from 1996, to $248 million, with stockholder dividends increased yet again. A.M. Best Company's ratings were still A-double-plus, or "Superior."
As the year 2000 approached, the company's outlook appeared to be quite solid. Conservative by nature, with the life insurance business remaining primarily stable and predictable, there appeared to be few major obstacles to continued prosperity. As a result of its diversified sales force and marketing techniques, which had been expanded substantially in the 1990s, American National expected to reap continued growth in revenues and assets. It remained guardedly optimistic about the ramifications of potential national health care programs on health insurance premiums and the company's overall operations. The heirs of founder William Moody, through the Moody Foundation and The Libbie S. Moody Trust, continued to control more than 61 percent of the company as it neared the end of its first century in business.
Principal Subsidiaries: American National Life Insurance Company of Texas; Garden State Life Insurance Company; Standard Life and Accident Insurance Company; American National Property and Casualty Insurance Company; American National General Insurance Company; American National Lloyds Insurance Company; ANREM Corporation; Securities Management & Research, Inc.
Principal Divisions: Home Service; Multiple-Line; Independent Markets; Group Insurance; Individual Health; Credit Insurance.
Statistics:
Public Company
Incorporated: 1905
Employees: 6,900
Sales: $1.74 billion (1997)
Stock Exchanges: NASDAQ
Ticker Symbol: ANAT
SICs: 6311 Life Insurance; 6321 Accident & Health Insurance; 6331 Fire, Marine & Casualty Insurance; 6351 Surety Insurance; 6324 Hospital & Medical Service Plans; 6282 Investment Advice
Address:
One Moody Plaza
Galveston, Texas 77550
U.S.A.