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Farmers Insurance Group is a provider of insurance management services and a holding company. It was founded in Los Angeles, California in 1928 by Thomas E. Leavey and John C. Tyler. It is now a wholly owned subsidiary of Zurich Financial Services, Zurich, Switzerland.

Farmers Group, acting under the "dba" Farmers Underwriters Association, and its wholly owned subsidiaries, Truck Underwriters Association and Fire Underwriters Association, they act as the attorneys-in-fact for three reciprocals or inter-insurance exchanges - Farmers Insurance Exchange, Truck Insurance Exchange and Fire Insurance Exchange. A reciprocal or inter-insurance exchange consist of policyholders (subscribers) who exchange contracts with one another so that they can provide themselves with insurance against certain losses. In addition, Farmers Group, Inc., is a life insurance holding company of the Farmers New World Life Insurance Company. Farmers Group, Inc. is the country's third-largest writer of both private passenger automobile and homeowners insurance.

Farmers Insurance Group of Companies is based in Los Angeles, California, and operates in 41 states across the country through the efforts of approximately 18,000 employees and services more than 15 million customers. In March 2000, the Farmers Insurance Group of Companies acquired/merged with Foremost Corporation (Foremost Insurance Company) located in Grand Rapids, Michigan. Foremost is the leading writer of manufactured homes and a prominent insurer of recreational vehicles and other specialty lines.

History

In 1928, Thomas E. Leavey and John C. Tyler founded the first Farmers Company in California. Today, the Farmers Companies (also known as Farmers Insurance Group®) are the country's third-largest writer of private passenger Auto and Homeowners insurance.

Farmers Group is also referred to as the Farmers Insurance Group of Companies, FIG and Farmers Insurance. It was incorporated in the State of Nevada having filed articles of incorporation with the Nevada Secretary of State on October 17, 1927. The first Board of Governors meeting was held on March 28, 1928. The Home Office, built in 1937, is located at 4680 Wilshire Boulevard, Los Angeles, CA 90010.

The Farmers Companies operate in 41 states across the country, servicing more than 15 million customers through the efforts of approximately 18,000 employees and 17,500 agents who are independent-contractor and independent agents.

Farmers New World Life Insurance Company, Mercer Island, Washington, offers a wide range of products from a fully flexible Universal Life product to traditional Term and Whole Life plans and annuities, all marketed by Farmers agents.

Farmers Financial Solutions, LLC, Simi Valley, California, offers a variety of financial products such as mutual funds, Variable Annuities, and Variable Universal Life products, which help build savings for customers’ future needs, such as retirement and college savings.

Farmers acquired the Foremost Insurance Company, Caledonia Michigan, in March 2000. It leads the industry in insuring specialty products such as mobile homes, motor homes, travel trailers and specialty dwellings.

Farmers Group, was previously a publicly traded company most recently traded on the NASDAQ until 1989. B.A.T. Industries, plc, London, England through its US subsidiary, BATUS, Inc. (a Delaware Corporation), submitted an unsolicited tender offer of $4.2 billion in October 1987 which amounted to an attempt at a hostile takeover of Farmers Group, although BATUS characterized it as “friendly”. Farmers Group rejected the initial tender offer but the Farmers Board and stockholders did finally agree to be acquired by BATUS for $5.2 billion and the acquisition was concluded in 1989. Farmers Group became part of the B.A.T. financial services group.

- In September 1998, the Zurich Financial Services Group was created from the merger with the financial services business of B.A.T. Industries p.l.c. Through a dual holding structure, Zurich Financial Services was owned 57% by Swiss-quoted Zurich Allied AG, representing the former shareholders of Zurich Insurance Company, and 43% by London Stock Exchange Allied Zurich p.l.c., the de-merged financial services interests of B.A.T. Industries p.l.c.

- In October 2000, the Zurich structure was simplified and unified under a single Swiss holding company. Allied Zurich and Zurich Allied shares were 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 (LSE: ZURN.L). Zurich Financial Services American Depositary Receipts (ADRs) are traded on the American Stock Exchange (AMEX: ZFSVY).

Community relations

Since Farmers founding in 1928, Farmerss Insurance has been committed to improving the communities in which our customers, agents and employees live and work. Investing in our communities is nothing new to Farmers - for many decades, we’ve been proud, active partners in bettering the lives of our neighbors across the country.

Farmers Insurance continue to invest considerable resources in programs that improve safety, enhance educational opportunity and increase civic participation in communities across America.

For instance, Farmers has committed much to special initiatives that enhance the ability of our nation's teachers to engage students in becoming better citizens. In partnership with the National Council for the Social Studies, Farmers created The American Promise program in 1995.

Through its citizenship-education curriculum and videos, more than 100,000 teachers have been able to share with their students the inspiring stories of citizens who are improving their own communities.

Farmers Insurance believes that our country’s diverse groups and cultures enrich every American. To promote greater cross-cultural understanding, Farmers has created a program honoring the Hispanic/Latino culture called

Young Americanos. Young Americanos reflects our commitment to the Latino community and to building bridges of communication and understanding among all the cultures making up the United States.

Farmers Insurance Agents

Farmers agents aren’t employees; they’re independent contractors who can conduct business on their own terms, given they comply with Farmers Companies’ guidelines and normal good-business practices.

This independence allows Farmers agents to live their lives the way they choose, not the way someone else chooses.

One of the unique benefits of Farmers is its comprehensive product offering. Accidents, risk management and asset accumulation: these are becoming essential in today’s world. Farmers agents offer the products that ensure their customers’ lives are restored to order as well as bring them closer to their future goals. Through hard work and professional dedication, our agents help to give their customers the security they deserve.

Criticism

State Insurance Commissioner reports reflect that Farmers Insurance has the in California, Washington, Texas, Oregon, Kansas, Arizona, Colorado and more. In 2003, Consumer Reports rated Farmers Insurance Homeowners "Worse" for both "Problems with Claim" and "Delayed Payments". In March 2006, Consumer Reports considered Farmers Insurance one of the “poorest performers” amongst 27 insurance companies in terms of paying off (auto) claims in 30 days or less.

External links

• Farmers Insurance Group - official web site
• United Farmers Agents Association - Farmers Insurance agent association.
• Belly of the Beast: Farmers Corporate Organization - an essay on Farmers Group corporate structure.

• Articles lacking sources from January 2007
• Companies based in Nevada
• Insurance companies of the United States