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Belly of the Beast: Farmers Insurance Corporate Organization

Farmers is a reciprocal insurance company. If you work or deal with Farmers Insurance, reading this document is a must. This high level description of Farmers Group states, "A fact that strongly indicates that FGI controls the Exchanges is the excessive fees charged by FGI. For example, as part of Farmers Form A Filing with the California Department of Insurance, FGI reported that its management fees from the exchanges exceeded actual management expenses by $660,726,000 in 1996, $598,062,000 in 1995, $545,392,000 in 1994 and $546,728,000 in 1993. For 1999, the figure was $758,700,000. These amounts are more than twice as much as it cost FGI to provide the Farmers Exchange or any of the companies of Farmers…I mean a lot of people don’t understand that, and it’s a good defensive position for a major corporation to be in, but I mean, the truth of what occurs is it all goes back to Farmers Group, Inc. There isn’t anything out there in those exchanges and in the varying companies that is not controlled by Farmers Group, Incorporated. … Money and everything else, policy, everything ties right back to management services." Belly of the Beast: Farmers Corporate Organization Presented April 2003

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