Vol. 11, No. 4 September 19, 2008
The past few weeks have been historic for the financial markets. They have also been unsettling for everyone. I’m reminded of the reputed old Chinese curse that reads “May you live in interesting times.” These are interesting times.
It’s natural for you and our customers to wonder what impact all of this is having on the State Farm organization. Simply put, State Farm remains financially strong. Our conservative, long-term, focused approach to investing continues to serve us well. While an organization of our size is never immune to swings in the financial markets, we work hard to avoid taking unreasonable risks. We consciously avoid the types of investments that have taken a horrific toll on a number of financial icons, including insurer AIG.
Meanwhile, Hurricanes Ike, Gustav and Hanna have reminded us of the significant destruction that can quickly occur from storms. I feel for the people who’ve seen their lives and communities upended. State Farm clearly has the resources—both financial and people—to respond. It’s not an easy job, especially since this has already been a very active year for weather catastrophes. I have tremendous pride in all of our associates, whether you’re actively on the ground or in supportive roles, helping our customers recover. After all, this is what we are all about.
No one can accurately predict economic ups and downs. But thanks to your efforts, the State Farm organization remains financially strong and growing.
Edward B. Rust Jr.