A message to our customers

American Family Insurance inspires, protects and rebuilds our customers’ dreams, as illustrated in the stories featured in this report. Perhaps you have had similar experiences.

Our customer focus starts with you and your relationship with our American Family agents, trusted advisers who care about knowing and meeting your needs. It continues with our employees, who are thoughtful, innovative and dedicated to serving you.

Our financial strength improved in 2013, with policyholder equity increasing to $6.6 billion. Policyholder equity is what we have available to protect you when the unexpected occurs. We anticipate paying more than $3.4 billion for claims incurred in 2013.

But we do more than pay claims. We provide in-car technology to help teens and adults become safer drivers. Our DreamBank in Madison, Wis., continues to inspire visitors by helping them identify and pursue their individual dreams. And, we support communities nationally through sustainability and charitable efforts.

Our dream is to protect more people across the country. A major part of this effort is our strong investment in products, systems and services for customers of our American Family agents.

We are also expanding our reach to consumers who prefer to conduct business using the Internet or call centers. In 2013, we acquired Homesite Group, a direct property insurance company, and helped create AssureStart, a startup direct small-business insurance distributor. They join The General®, a direct auto insurance company we acquired in 2012.

Together, the companies in our American Family group provide options to meet consumers’ varied preferences.

Thank you for inspiring us with your dreams ... and for allowing American Family to serve you.

Jack C. Salzwedel
Chairman and Chief Executive Officer
Daniel R. Schultz
Enterprise President and Chief Operating Officer

Inspiration can appear when you least expect it

Where do you look for inspiration when you're trying to achieve something big? Robin Coalson found hers in an unusual place. Her life and health had taken a downturn, but driving one day, she heard an American Family radio commercial for a competition to help people realize their dreams. She decided to take a chance and enter. What happened next shows the power of positive actions.

See more of Robin’s story in the video above.
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  • Motivating Business Owners with Small-Business Workshops

    “I've always dreamed about inventing products that impact people. The people at DreamBank in Madison have helped me achieve that. I've attended events with great speakers, networked and held business meetings there. Their cheerleading and support kept me motivated as I turned my dream into a business.”
    Bob Baddeley, founder of Portable Scores, Madison, Wis.
  • Supporting Local Communities

    “It’s hard to dream when you’re hungry. Knowing food will be on the table for their families lets people dream about other things. American Family shares our passion to help those in need by giving and volunteering. The Steve Stricker American Family Insurance Foundation donated $50,000 to help stock pantries with healthy food, including the one where we volunteer. We couldn’t be more proud.”
    Gary Gruber and Pat Farrell, American Family employees and The River Food Pantry volunteers
  • Safe Driver Education for Insurance Savings

    “I not only helped develop mySafetyValet℠, I use it. The in-car technology collects data drivers can use to become safer behind the wheel and perhaps even lower their insurance premiums. I have enrolled each of my cars in mySafetyValet, and it’s certainly helping me.”
    Philip Wang, American Family actuarial research modeler
39,000 discovered their dreams
More than 39,000 people visited the DreamBank since it opened in October 2012 to discover their dreams and find the encouragement and resources to pursue and protect them.
1,200 inspired by a champion
The Russell Wilson Passing Academy welcomed 1,200 kids from across the United States at five events in 2013. Wilson, our dream ambassador and Super Bowl QB, teaches fundamental skills while encouraging high character and moral standards in a fun environment.
$1.5 million+ pledged to United Way
Our company, agents and employees pledged more than $1.5 million to United Way chapters in local communities. This money will help tutor, nourish and support those in need.

Pursuing a dream to protect others’ dreams

As an American Family claims employee, Vicki Wagener helped thousands of people rebuild and recover from misfortune. It was exciting and rewarding, but it was always after the misfortune occurred. Vicki wanted to proactively help people prepare and protect themselves before any tragedies or accidents. So she changed course and became an American Family agent. For her, it’s been a dream come true.

See more of Vicki’s story in the video above.
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  • Providing Employee Safety Tips

    “Every business has risks, and my role is to minimize those risks. I help business owners make sure their workplaces are safe, efficient and effective. That’s the best part of my job.”
    Melissia Brooks, American Family loss-control senior specialist
  • Life Insurance for Peace of Mind

    “Making sure our children, Derick and Amanda, are financially secure — especially if we’re not around — is important to us. Having life insurance is the best way to preserve that safety net. We worked with our American Family agent, Dominic Lai, to acquire the life insurance policy that fits our needs and gives us a sense of security.”
    Helen Fong, mother of Derick and Amanda (pictured), Chicago, Ill.
  • Keeping Motorcycle Riders Protected

    “When my friends and I get on our bikes, we just ride. We have a general idea where we’re going, but nothing is etched in stone. We don’t worry about much and, for me, having American Family is part of that. If an accident happens, I know American Family will be there to help. I wouldn’t have been a customer as long as I have if I didn’t think that way.”
    Bruce Stallman, retired police officer, Phoenix, Ariz.
298,000+ businesses protected
Our commercial insurance products protect the dreams of more than 298,000 businesses – large, small and in between.
16,853 on the road to safer driving
Since the award-winning Teen Safe Driver Program℠ started in 2007, more than 16,800 families have participated in it. This innovative program helps reduce risky driving habits in teens through in-car technology, professional coaching and encouraging driving discussions between parents and teens.
$125.9 million in life insurance benefits
American Family Life Insurance Company paid out 2,885 claims — worth more than $125.9 million — to help the beneficiaries of our policyowners in 2013.

Rebuilding a home

What’s the worst that can happen and are you ready for it? The MacDonald family was living in the Black Forest in Colorado when winds turned a mountain fire into an inferno that engulfed their neighborhood. When Tim MacDonald heard what was going on, he feared the worst and called his wife and youngest son, who were still at home. Watch how a family, with our support, overcame destruction and started rebuilding its home and life.

See more of the MacDonalds’ story in the video above.
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  • Helping Communities Recover from Disasters

    “Customers call me with a range of claims. They also have a range of emotions and concerns. Whether it’s a burglary, fender-bender or a storm claim, I’m here to help them. I reassure them, go over their coverage and help deliver on our promise.”
    Erik Larson, American Family claims care center representative
  • Fast Claim Response Saves Harvest

    “Time is precious during the sugar beet harvest. Every hour we don’t have a truck, we lose an acre of harvest. When one of our trucks was hit by a large rock, damaging the windshield, my agent Christine Rasmussen helped me find someone to fix it faster than I ever expected. She saved us.”
    Peter Hvidsten, fifth-generation farmer for Hvidsten Farms, Stephen, Minn.
  • Taking Environmental Social Responsibility

    “Our company takes our environmental responsibilities seriously. We’re recycling and conserving materials, using less water and energy. Protecting the environment and supporting communities where we do business have a broad, positive effect for our customers.”
    Beth Churchill, American Family workplace sustainability specialist
$3.4 billion to rebuild customer dreams
We helped rebuild dreams with anticipated property-casualty claim payments of $3.4 billion for claims occurring in 2013.
4.1 million calls answered
Our customer care center employees helped customers more than 4.1 million times, taking their claims and providing other services 24/7.
Zero Waste Company
In 2013, we set ourselves the aspirational goal of a zero waste future. We’re now working on sending less and less waste to landfills.

Financials

Print our financials

This section (consolidated highlights, statement of income, balance sheet and statement of equity) summarizes the financial results for the American Family group of companies.

American Family Insurance Group
Consolidated Highlights

GAAP basis - As of Dec. 31, 2013 (in thousands)

2013 2012
Assets $19,490,300 $17,939,130
Equity $6,580,946 $6,136,828
Revenue $6,813,483 $6,238,062
Life insurance in force $89,551,775 $88,338,843
Net income $378,835 $360,511
We're Strong For You
American Family Mutual Insurance Company is rated “A” (Excellent) by A.M. Best. You can be confident that we have the stability and resources to protect you for the long haul.
Nearly National
It’s our dream to provide coverage to customers around our country. Through American Family, The General®, Homesite and AssureStart we serve customers in 46 states.
$6.6 billion to cover the unexpected
Our policyholder equity was $6.6 billion at the end of 2013. This money ensures we can help customers who experience unexpected events and catastrophes.

American Family Insurance Group
Consolidated Balance Sheet

GAAP basis - As of Dec. 31, 2013 (in thousands)

Assets 2013 2012
Bonds $11,733,949 $11,507,119
Stocks 1,950,648 1,599,756
Cash and cash equivalents 513,409 470,136
Other assets 5,292,294 4,362,119
Total assets $19,490,300 $17,939,130
Liabilities 2013 2012
P/C loss and loss adjustment reserves $3,692,509 $3,553,469
Life reserves and deposit contracts 3,999,524 3,898,708
Unearned premium reserves 2,768,832 2,300,080
Other liabilities 2,448,489 2,050,045
Total liabilities $12,909,354 $11,802,302
Equity 2013 2012
Accumulated other comprehensive income $799,110 $733,827
Retained earnings 5,781,836 5,403,001
Total equity $6,580,946 $6,136,828
2013 2012
Total liabilities and equity $19,490,300 $17,939,130

American Family Insurance Group
Consolidated Statement of Income

GAAP basis - For the year ended Dec. 31, 2013 (in thousands)

Revenues 2013 2012
P/C net premiums earned $5,786,539 $5,304,359
Life premiums earned 314,561 325,936
Net investment income 558,006 527,554
Other revenues 154,377 80,213
Total revenues $6,813,483 $6,238,062
Losses and Expenses 2013 2012
P/C losses incurred $3,655,007 $3,318,619
P/C expenses incurred 2,286,864 2,155,728
Life insurance benefits incurred 258,258 298,435
Other expenses 228,126 195,687
Total losses and expenses 6,428,255 5,968,469
Gain from operations 385,228 269,593
Realized capital gains 140,732 218,720
Income before taxes 525,960 488,313
Tax expense 147,125 127,802
Net income $378,835 $360,511

American Family Insurance Group
Statement of Equity

GAAP basis - For the year ended Dec. 31, 2013 (in thousands)

Equity 2013 2012
Beginning equity $6,136,828 $5,557,726
Net income 378,835 360,511
Unrealized gains (losses) (115,731) 167,375
Other 181,014 51,216
Ending equity $6,580,946 $6,136,828

About Us

Nearly National

One or more companies of American Family Insurance Group operate in 46 states (light blue and dark blue). American Family agents offer multiline products and trusted advice in 19 states (dark blue).

Products

Personal lines, Commercial and Farm/Ranch products are underwritten by American Family Mutual Insurance Company and its subsidiaries, American Standard Insurance Company of Wisconsin, American Standard Insurance Company of Ohio and American Family Insurance Company. Life products are underwritten by American Family Life Insurance Company.

Some products are not available in every state. To learn more about any of these products or services, contact an American Family agent or visit our website.

Personal Lines

  • Auto1
  • All-terrain vehicles (ATV)
  • Boatowners
  • Campers/motor homes
  • Condominium unit owners2
  • Custom-value homes
  • Golf carts
  • Homeowners2
  • Mobile/manufactured homeowners
  • Motorcycles
  • Personal liability umbrella
  • Renters2
  • Snowmobiles

Commercial-Farm/Ranch

  • Business auto
  • Businessowners3
  • Business Key
  • Contractors Package Program
  • Commercial general liability
  • Commercial property
  • Commercial liability umbrella
  • Crime and fidelity
  • Farm/Ranch
  • Farm/Ranch personal liability umbrella
  • Inland marine
  • Nonprofit directors and officers Liability
  • Rental Dwelling Protection Program
  • Workers compensation

Life

  • Fixed annuities
  • Term life
  • Universal life
  • Whole life

1 Auto insurance products are also underwritten by The General®.

2 Homeowners, renters and condominium insurance are also underwritten by Homesite.

3 Businessowners policies are also issued by Midvale Indemnity Company and distributed and serviced by AssureStart.

The American Family Insurance Group, with more than $19 billion in total assets, consists of the following companies:

  • American Family Mutual Insurance Company
  • American Standard Insurance Company of Wisconsin
  • American Family Life Insurance Company
  • American Family Brokerage, Inc.
  • American Family Financial Services, Inc.
  • American Family Insurance Company
  • American Standard Insurance Company of Ohio
  • AmFam, Inc.
  • American Family Securities, LLC
  • The AssureStart Insurance Agency, LLC (AssureStart)
  • Homesite Group Incorporated and its subsidiaries (Homesite)
  • Midvale Indemnity Company
  • New Ventures, LLC
  • Permanent General Holdings Corp. and its subsidiaries (The General®)

American Family and Subsidiaries Leadership

  • Jack C. Salzwedel
    Chairman and Chief Executive Officer
  • Daniel R. Schultz
    Enterprise President and Chief Operating Officer
  • David C. Holman
    Chief Strategy Officer
  • Daniel J. Kelly
    Chief Financial Officer
  • Kristin R. Kirkconnell
    Chief Information Officer
  • Mary L. Schmoeger
    Chief Administration Officer
  • William B. Westrate
    American Family Chief Operating Officer
  • Peter C. Gunder
    Chief Business Development Officer
  • Mark V. Afable
    Chief Legal Officer
  • David A. Graham
    Chief Investment Officer
  • Gerry W. Benusa
    Chief Sales Officer
  • Gregory V. Gisi
    President, Reinsurance/B&A Insurance Solutions
  • Todd Fancher
    President, Life
  • Christopher R. Listau
    President, Commercial-Farm/Ranch
  • Timothy D. Constien
    President, Personal Lines
  • Randy P. Parker
    Chief Executive Officer of The General®
  • Mike E. LaRocco
    Chief Executive Officer of AssureStart
  • Fabian J. Fondriest
    Chief Executive Officer of Homesite

American Family Board of Directors

  • Jack C. Salzwedel (Chair)
    Chairman and Chief Executive Officer
    American Family Insurance Group
  • David R. Anderson
    Retired Chairman and Chief Executive Officer
    American Family Insurance Group
  • Londa J. Dewey
    President
    QTI Group
  • Leslie Ann Howard
    President and Chief Executive Officer
    United Way of Dane County
  • Ted D. Kellner, CFA
    Chairman and Chief Executive Officer
    Fiduciary Management, Inc.
  • Rakesh Khurana
    Professor
    Harvard University
    Harvard Business School
  • Michael M. Knetter, Ph.D.
    President
    University of Wisconsin Foundation
  • R. Scott Malmgren
    Retired Senior Partner
    Deloitte & Touche, LLP
  • Walter M. Oliver
    Senior Vice President
    Human Resources and Administration
    General Dynamics Corporation
  • Eliot G. Protsch
    President
    Wapsie Investment & Advisory, LLC
  • Daniel R. Schultz
    Enterprise President and Chief Operating Officer
    American Family Insurance Group
  • Paul S. Shain
    President and Chief Executive Officer
    Singlewire Software, LLC
  • Thomas J. Zimbrick
    Chief Executive Officer
    Zimbrick, Inc.