STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY Statement of Condition [In Millions of Dollars) Assets 20 18 2012 Cash and Short Term Investments 2.384 $ 2,527 Bonds 53,043 45,751 Une Mhated Common & Preferred Stocks 47,852 55,70.3 Equity In Insurance Subsidiaries 40,729 39,030 Other Assels 15,857 18,121 Total Assets Liabilities Claim and Clairn Expenses $ 12,554 $ 33,237 Unearned Premiums 12,924 13,132 Other Liabilities 13,634 17,358 Surplus Funds for Protection of State Farm Mutual Policyholders, including the Investment Fluctuation Reserve $ 55,434 $ 53,863 Funds Assigned for Prolection of Customers of Subsidiaries 42,534 40,816 Funds Assigned for Catastrophe Reinsurance Assumed from Amliales 2,785 2,326 Total Liabilities and Surplus Summary of Operating Data (In Millions of Dollars) 2018 2012 Premium Earned $ 43,476 $ 42,420 Less: Dollars for Claims 26,524 31,092 Expenses for Paying Claims 5,235 5,417 Service and Administrative Fees 10,385 10,192 Underwriting Gain or ( Loss] Plus: Investment Gain and Other Income 5.786 4,039 Income before Dividends and Taxes Less: Dividends to Policyholders D Income Taxes Incurred (Recoverable) 718 (1,944) Net Income Part 1: Balance Sheet A] Fill in the assets portion of the table and calculate Total Assets (8 points) B) Fill in the liabilities portion of the table and calculate Total Liabilities ($ points) () Fill in the surplus portion of the table and calculate Surplus (8 points) Part 2: Income and Expense Statement D) Fill in the table and calculate Net Income ($ points) E) Calculate the Loss Ratio (8 points) F] Calculate the Expense Ratio (8 points] G) Calculate the Combined Ratio (8 points] To forecast 2019 values, assume that the growth rate in the values between 2018 and 2017 will remain the same for 2019. The growth rate can be calculated via the following formula:2017 2018 Growth Rates 2019 Cash and Short Term Investments Bonds Stock Equity in Subsidiaries Other Asset Total Assets Liabilities 2017 2018 Growth Rates 2019 Claims and Claim Expenses Unearned Premiums Other Liabilities Total Liabilities Surplus 2017 2018 Growth Rates 2019 Investment Fluctuation Reserve Protection of Customers of Subsidiaries Catastrophe Reinsurance Assumed from Affiliates Total Liabilities and Surplus surplus Part 2] Income and Expense Statement DJ Operating Data 2017 2018 Growth Rates 2019 Premium Earned Dollars for Claims Expenses for Paying Claims Service and Administrative Fees Underwriting Gain or (Loss] Investment Gain and Other Income Income Before Dividends and Taxes Dividends to Policy Holders So Income Taxes Incurred (Recoverable] ($1,944]] $718 $1,470 Net Income Loss Ratio Expense Ratio Combined Ratio
