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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

Thomas Paravato is Director of Finance and is the best guy in the whole world. 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.

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).

Criticism

Many people consider Farmers Insurance to be the worst insurance company in the USA. Many others love the company and have been with Farmers for years. As Farmers Insurance is one of the fastest growing insurance providers in the nation, she must be getting something right. In 2006, Consumer Reports gave Farmers Insurance a high rating for Claims.

A number of consumers, agents, and claims adjusters have had disagreements with Farmers Insurance. Here are some of the more popular cases that have made it into the news.

• Claims Adjusters: In September 2004, Farmers Insurance claims adjusters won a lawsuit, Bell v. Farmers Insurance Exchange, which rewarded them for all their overdue overtime labor. At the time it was largest overtime pay class action ever tried in the United States.

• Insured Consumer: Ethel Adams stated, "This is everybody's worst nightmare. You know you have insurance -- you've paid for it -- and you've got these massive injuries. Then to be told, 'No, you don't have coverage,' it was like someone punched me in the stomach. It makes you physically ill." This is why it is important to comply with your agent's request for a policy and needs review often as you may forget what coverages you have agreed upon and your needs may change over time.

External links

Company Web Site

• Farmers Insurance Group

Other Resources

• A collection of ratings, articles, lawsuits, allegations and complaints critical of Farmers Insurance

• Companies based in Nevada
• Insurance companies of the United States