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2010 American Family Annual Report

Smart investing helps
secure the future for policyholders

The world can seem like a pretty uncertain place sometimes. But there's someone you can count on to help protect you – American Family Insurance.

When you buy insurance from us, you're buying a promise – a promise that we'll pay for events covered by your policy. We've kept these promises to our policyholders for 84 years, thanks to a strong financial foundation.

"We are stewards of our policyholders' money, so we're very judicious in our investing approach," says Richard White of our Investments Division. "We need those funds to be there when our policyholders need them."

Our investing approach is to maintain a balanced diversified portfolio. We invest prudently, with a portfolio primarily composed of high-quality bonds and stocks. Special emphasis is placed on managing investment risk.

So no matter what happens, our investment strategy stays on a steady course, and we can deliver on our promises – whether for claims we've planned for or unexpected catastrophes.

When Mother Nature delivers more severe weather than we estimate, we have an extra layer of financial protection for policyholders. It's called policyholder equity, and right now, we have more than $5 billion in equity ready, just in case.

We're committed to protecting our policyholders' money, so we can pay covered claims, no matter what comes your way. Or ours.


To be sure we're on track to keep our promises to our policyholders, we look at various financial measures such as:

  • Assets (What we own). This includes investments funded by the
    premiums customers pay, and things like property and equipment.
  • Liabilities (What we owe). This includes expected claims payments
    and other expenses we've incurred but have not yet paid.
  • Equity (Net worth). This is assets minus liabilities and represents
    funds set aside to cover unexpected events.
  • Find these measures and more in our Financials.