our promise. · our policyholder equity. our prediction for 2006 proved true, but for an entirely...
TRANSCRIPT
AmericAn FAmily insurAnce • 2006 AnnuAl report
Delivering on our promise.
Our promise.
We believe an insurance company is only as good as its ability and commitment to keep its word. At American Family Insurance, our employees and agents listen and respond to your needs. When the unexpected occurs, American Family acts quickly and responsibly to restore those aspects of your life that were disrupted and protected by your insurance policy. By taking an active role in the communities we serve and treating you with dignity and respect, we strive to continually renew the trust you place with us. That’s our promise to you as an American Family customer.
AmericAn FAmily insurAnce • 2006 AnnuAl report
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American Family Chairman and CEO David Anderson (left) and President and COO Jack Salzwedel.
A letter to our policyowners
AmericAn FAmily insurAnce • 2006 AnnuAl report
Perhaps the one sure thing we can say about the insurance business is there are no sure things. After all, isn’t that why you have insurance in the first place?
A year ago in this spot, we concluded our note with the prediction that “2006 should be another good year.” That expectation followed a very successful 2005, one in which we paid $3.4 billion in claims and added $623 million to our policyholder equity.
Our prediction for 2006 proved true, but for an entirely different reason: It was a good year – no, it was an extraordinary year – for us to deliver on our promise of protection and service.
The road you traveled in 2006 was chock-full of bumps, potholes and storms, and we responded by helping our customers recover with claim payments of $4.3 billion. Payments for storm claims alone surpassed $1.1 billion, easily setting a company record.
Most of that storm damage came from wind, hail and tornadoes that inflicted significant damage with little warning. While climatologists struggle to figure out the implications of recent weather patterns, we fully understand we have to be ready to come through for our customers no matter what Mother Nature throws our way.
That’s where our financial strength and equally strong commitment to service kick in. American Family is a mutual insurance company owned by our policyholders. Unlike stock insurance companies that have outside pressure to report positive financial results every quarter, we can take a more long-term view when it comes to planning and making decisions. We can invest our profits to improve our products and services, and to maintain a strong financial position that protects our policyholders from unexpected catastrophes and other losses, like those that occurred in 2006.
We backed our promise last year with more than dollars. Our expert employees and agents mobilized in response to 40 company-declared catastrophes, in addition to day-to-day claims from our homeowners, auto, commercial, farm/ranch, life and health insurance lines. We also moved forward on technology and process enhancements, focusing on service-delivery methods that our customers value most.
It’s a good year, indeed, when we can help customers like Ann and David Volkers (page 15), and the family of the late John Stanton in Phoenix (page 19) recover from the unexpected.
We understand you have many insurance companies from which to choose. That’s why American Family agents and employees are dedicated to providing top value in our products and services, along with the financial backing and security of a strong, stable company.
Our success is measured by our ability to help you manage life’s uncertainties. We’re looking forward to another good year in 2007, and we truly appreciate your trust in American Family Insurance.
3
David R. AndersonChairman and Chief Executive Officer
Jack C. SalzwedelPresident and Chief Operating Officer
Respond.
AmericAn FAmily insurAnce • 2006 AnnuAl report
The unexpected happens, and you
don’t quite know where to turn.
You didn’t ask for a tree limb to
come crashing through your roof,
or for that driver to run a stop sign
and plow into your vehicle, or for
your spouse to pass away suddenly.
Bad things happened to good
people in 2006, and American
Family helped our customers pick
up the pieces.
5
18Separate locations where American Family brought in its satellite-equipped mobile claim offices to help serve customers following catastrophic events. These vehicles are equipped with technology and generators that allow adjusters to handle claims even when the area is without power.
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Friends and family of Corey Clark of Topeka, Kan., have always said he’s the type of guy you can depend on if you are in need of a hand – or some heavy lifting.
“My brother-in-law, Johnny, called and needed help moving a
tanning bed from his house over to his wife’s hair salon,” recalls
Corey. Corey drove to his brother-in-law’s house, loaded the tanning
bed in Johnny’s truck and set off to the salon.
“The cell phone rang and it was Johnny’s wife, Angie,” says Corey.
“My sport utility vehicle was parked on the street across from their
driveway and Angie had just backed her car into it. I thought to
myself, ‘Boy, they’re going to owe me a favor for this one.’”
At the time of the accident, Corey’s SUV was insured with a different
insurance company. Angie’s car was insured with American Family.
“The service I received from my claim adjusters, Melissa Smith
and Matt Bush, was really impressive,” says Corey. “They were fast,
responsive and very helpful.” Within a matter of days, Corey called
American Family agent Peter Bellucci to check out the possibility of
becoming a customer.
“I’m glad I did it. Peter’s assistant, Kyle Wheeler, looked at my
situation and made some recommendations. Now I have more
complete coverage at a lower rate,” says Corey. “Quick response
time and people looking out for me – that’s why I switched to
American Family.”
It all started with a plea for a tanning bed mover. “I’m happy with
how things turned out,” says Corey. “I’ve told Johnny and Angie to
forget about the favor.”
Left to right (standing), agent assistant Kyle Wheeler, claim adjuster Matt Bush, American Family agent Peter Bellucci, policyholders Angie Walker and Corey Clark (seated) and claim adjuster Melissa Smith (far right).
14American Family’s ranking among all U.S. property-casualty insurance groups based on net premium volume from the sale and renewal of insurance policies.
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Ever since she was a young child growing up in Shanghai, China, Dan Shi understood the importance of learning, even if it required personal sacrifice to do it. Her parents, both college-educated engineers who worked in the oil fields of China, sent their daughter to live with her grandparents so she could obtain a better education.
Shi went on to graduate with a degree in philosophy from Fudan University in Shanghai. Following a move to the United States, she earned a master’s degree in educational psychology from the University of Wisconsin-Milwaukee.
“I decided to take a break after completing my master’s,” says Shi. “I had experience as a university teacher, but I wanted to explore my options and try to determine what I wanted to do with the rest of my life.”
That exploration led her down a different path, to become an agent for American Family Insurance.
“Insurance was a new and appealing industry for me,” says Shi. “There was so much to learn, and I continue to learn today. I also enjoy sharing that knowledge and providing a positive experience for my customers.”
Fluent in English and Chinese, Shi concluded two languages still weren’t enough and is now learning a third language to better serve her many Polish-American customers in Milwaukee.
“My assistant speaks Polish, but I know it’s important for me to form relationships with my Polish-speaking customers, too,” says Shi. “I remember how frustrating a communications barrier can be, so I don’t want that to happen, especially when my customers are looking to me for help.”
“Learning a foreign language is a long and demanding task, but it’s also a great pleasure and offers me a way to stand out from the competition,” says Shi. “I’m focused on my goal, not only for myself, but for my customers as well.”
Policyholder Hanna Smyk, American Family agent Dan Shi and Hanna’s granddaughter, Natalia (main and inset photos).
Restore.
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Restore. At American Family Insurance,
we take great pride in our
dedicated agents and employees,
customer-focused work processes
and strong financial position.
All are elements of a proven
formula to help you get back
on track following a disaster or
accident. It’s what you should
expect from your insurance
company, and it’s what we deliver.
1,347Number of American Family agents recognized in 2006 as Distinguished Insurance Agents by J.D. Power and Associates. These agents have demonstrated the highest level of commitment to outstanding customer service.
Left to right, American Family agent John Gross, policyholders Gene and Caroline Sajol, Romuldo and Adelaida Auxtero and American Family agent Keith Furlong.
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For the Auxtero and Sajol families, the tree-lined streets in their quiet St. Louis neighborhood provided an ideal setting to settle down and raise their children.
Next-door neighbors and friends for many years, the two families share memories of celebrating birthdays, holidays and summer barbecues. They also share the shade from a large oak tree that stands near the roadway in front of their homes.
Last August, the mighty oak provided another shared experience when a fierce thunderstorm snapped one of its massive branches, causing it to crash on top – and into – the Auxtero and Sajol homes. Both homes are insured with American Family.
“I was on my way to pick up my wife from work,” says Gene Sajol. “My daughter called and wanted us to get home right away. Nobody was hurt, but she was with her little boy, and he was terrified. I could hear him crying in the background.”
The neighbors contacted their respective agents – John Gross for the Sajols and Keith Furlong for the Auxteros – to start the claim process. The storm had made both homes temporarily uninhabitable in need of major roof, porch and interior repairs.
American Family responded, promptly inspecting and paying for the storm damage, plus the families’ additional hotel and food expenses while their homes were being repaired.
“Our agents and the people who handled our claims treated us with patience and respect,” says Gene. “They knew what we were going through and what it would take to get our homes back to the way they were before the storm.”
Romuldo Auxtero echoes Gene’s sentiments. “American Family kept in touch with us to help us understand the process and what would happen next.”
Both the Sajols and Auxteros returned to their repaired homes in early November, fully recovered after the surprise visit from their neighboring oak tree.
1,101,562,634Dollars to be paid by American Family to help our customers rebuild and recover from severe storms in 2006.
Left to right, policyholders Ann and David Volkers, American Family agent Scott Lawrence and claim adjuster Matt Steinfeldt.
AmericAn FAmily insurAnce • 2006 AnnuAl report
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Just north of Stratford, Iowa, it seemed like any other Saturday for Ann and David Volkers. Ann had just returned home from shopping, while David was putting the final touches on another full afternoon of yard work.
The couple moved inside when they noticed bad weather was approaching. “I was thinking we could get hit by hail, so I went to move my truck into the garage,” says David. “As I started walking down the driveway, that’s when I saw the tornado coming.”
David began to sprint toward the house. Turning his head to look back one last time, he saw a neighbor’s garage explode from the swirling winds. “I got inside the house, grabbed Ann’s hand and we ran down-stairs,” recalls David. “Not a second later, we heard glass shattering.”
Once the storm passed, Ann and David walked up the stairs to discover their dream home – built just a year earlier – in shambles. Portions of the roof and garage were gone. The windows had imploded, embedding shards of glass into drywall, hardwood flooring and furniture.
“You have such a feeling of hopelessness,” says David. “Looking around at everything we had worked for all our lives, our first thought was, ‘Do we have enough insurance?’”
Scott Lawrence, the couple’s American Family agent, knew he needed to do more than just assure his customers they had enough coverage.Early the following morning, Scott joined David to start the recovery process, nailing sheets of plastic over the home’s broken windows to protect what was left inside.
Over the next several months, Scott and claim adjuster Matt Steinfeldt worked closely with Ann and David as the home’s major renovation took shape.
“I just tried to put myself in their shoes, and reassure them we had the people and resources to help,” says Matt.
“American Family was excellent, working with us to line up everything. I guess you could say American Family is there to get your life back to normal,” says David. “That’s our experience.”
Renew.
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Renew. They say time and friends help heal
all wounds. Every year, American
Family helps hundreds of thousands
of people like you turn the corner
from the unexpected and get back
to the business of living. Along the
way, you’ve widened your circle of
acquaintances, and perhaps your
community has grown a bit
stronger from the experience.
483,244Families, individuals and businesses who have relied on American Family for insurance protection or financial services for 20 years or more.
Family of the late John Stanton, including his wife Heather and daughter Savannah, with agent assistant Todd DeLeonardis (middle sitting), life claim adjuster Cheryl Knight (second from right) and American Family agent Janene Ferraris (far right).
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A plaque in the Sonora Skies Funeral Home in Mesa, Ariz., carries special meaning for its new owners, but not for the reason most people might expect. It reads: “Our family serving your family at life’s most sensitive moment.”
The funeral home is owned by the family of John Stanton, who died last May from an undiagnosed heart defect. A beloved husband, father, son and brother, John was only 22 years old.
Having worked in the funeral home profession for years, John’s family had provided compassion and understanding to hundreds of others in their situation. Only this time they were the ones looking for help and comfort, especially for John’s wife, Heather, and two-year-old daughter, Savannah.
American Family Insurance was one of the comfort providers, following through on the life insurance policy John had purchased to help protect his young family. Agent Janene Ferraris, her assistant Todd DeLeonardis and life claim adjuster Cheryl Knight responded to help the Stantons.
“They were incredible to work with,” says Ken Stanton, John’s father. “Cheryl was the consummate professional, always courteous and aware that there is a family behind the claim number. Janene and Todd provided emotional support that we’ll always remember.”
In early 2006, John and several family members started a business to provide transportation services to funeral homes throughout Arizona. His plan was to split his time between the business and mortuary school, and then join his father to open their own funeral home. John’s death did not change everything – Ken Stanton said his son wouldn’t want that to happen. Ken purchased the Sonora Skies Funeral Home and the family kept the transportation business, where Heather has stepped in as a full partner.
The proceeds from John’s life insurance policy have allowed Heather time to collect her thoughts and plan for the short- and long-term needs of her daughter. “I have Savannah,” says Heather. “She has his eyes, and when I look at them I see John. I couldn’t ask for anything more.”
60Patient beds and cribs in the state-of-the-art American Family Children’s Hospital, scheduled to open in 2007 on the University of Wisconsin-Madison campus. American Family provided an initial gift of $10 million toward construction, while an additional $5 million was raised from employee and agent contributions along with corporate matching funds.
Left to right, Union Christian Church members David Rector and Linda Smith, Pastor Mark Grayless, claim adjuster Vickie Herring and American Family agent Kevin Michael. (Inset photo courtesy of the Tribune-Star.)
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The choir and youth group members at Union Christian Church in Terre Haute, Ind., climbed into their cars and started their short trips home. Like most Thursday evenings at the 150-year-old congregation, it had been filled with hours of joyful noise. But now all was quiet … at least for a few moments.
Less than 10 minutes later, a freakish winter tornado ripped into the church. While the pulpit stayed put and all of the stained glass windows escaped without a crack, the winds sheared off a giant chunk of the sanctuary’s roof, crashing it down on an adjacent highway.
Church members call their timely exit “divine intervention.” The building was not as fortunate. In addition to the missing roof, the five massive beams holding up the cathedral ceiling were damaged beyond repair and an outside wall had moved three inches. The sanctuary needed to be rebuilt.
Union Christian Pastor Mark Grayless comforted his congregation. “The building’s gone, but our church is still here,” he told them.
The building was insured with American Family and agent Kevin Michael, who teamed with claim adjuster Vickie Herring and a construc-tion company to literally put a new roof over the congregation’s head.
With a few modifications, such as a truss system to replace the load-bearing beams and wider aisles to improve wheelchair accessibility, the sanctuary was rebuilt to its former self as much as possible. Even the stained glass windows were preserved and transferred to the new structure. “American Family helped us restore what nature had torn apart,” says Pastor Mark. “We were hoping to have the new sanctuary ready by Christmas, but we were back in the building a month earlier. We had our first service on November 20.”
Kevin, also a Union Christian member, says, “The pastor was right – even when the roof was gone the church was always here. But it’s sure nice to be back home.”
$1,187,000Contributions to local United Way chapters made by American Family and our employees throughout the 18 states the company serves.
American Family agent Eric Lindsay leads a class at the North Lawndale branch of Neighborhood Housing Services. (Inset photo of North Lawndale neighborhood courtesy of Mark Pokempner/NHS of Chicago.)
AmericAn FAmily insurAnce • 2006 AnnuAl report
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The North Lawndale neighborhood in Chicago was the place to be, a blend of manufacturing businesses and greystone homes where a spectrum of people worked and lived. Then in the 1960s came the turmoil: Manufacturers and their jobs left, violence increased and the once proud housing stock deteriorated.
Four decades later, that same neighborhood is experiencing a turn-around, due in part to the North Lawndale branch of Neighborhood Housing Services (NHS) of Chicago, support from companies like American Family Insurance and volunteers like American Family agent Eric Lindsay.
American Family is a longtime contributor to NHS, a nonprofit organization that helps renew communities from the ground up, offering education and financial resources to qualified families so they can purchase, improve and sustain their homes. NHS achieves its mission by partnering with lending institutions, insurance companies, foundations and others to help families understand and carry out their responsibilities as homeowners.
Eric, a former social worker, teaches night classes at the North Lawndale NHS branch as part of a first-time homebuyers program. Students in the program learn about insurance, home-financing options and home safety to qualify for low-interest loans offered through NHS and other community development programs.
“Most of the people enrolled already have started saving for a down payment,” says Eric. “Our goal is to provide information and resources to help them close the deal.”
Eric sees things getting better in North Lawndale every day. Not only does he live in the neighborhood with his wife and children, he’s also moved his office there.
“We’re making progress,” says Eric. “Going back a decade, there wasn’t a block that didn’t have at least one vacant lot, and most of the housing units were rentals.
“Today, more lots are developed, and we’re seeing a steady increase in first-time home ownership. We’re becoming a community again.”
Financials.
AmericAn FAmily insurAnce • 2006 AnnuAl report
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You don’t have to be an accountant
to glean a story from the financial
reports. The columns of numbers
tell the story of a financially strong,
well-managed company that has
been in business since 1927.
Even in a year beset by a record
level of storm losses, American
Family continues to build resources
so that we can protect you from
the unexpected.
Financials.
American Family Insurance Group
Consolidated HigHligHts
2006 2005 2004 2003 2002
Assets (in thousands) $15,477,009 $14,636,642 $13,641,212 $12,238,586 $11,005,679
Equity (in thousands) $4,889,281 $4,837,014 $4,213,709 $3,612,189 $3,139,923
Revenue (in thousands) $6,789,396 $6,831,824 $6,606,786 $6,064,463 $5,307,134
Life insurance in force $75.9 billion $71.0 billion $67.6 billion $64.5 billion $61.3 billion
Field force 3,975 3,952 3,875 3,765 3,838
Employees 8,237 8,135 8,238 8,240 7,748
The American Family Insurance Group consists of the following nine companies with more than $15.4 billion in total assets:
• American Family Mutual Insurance Company (AFMIC)• American Standard Insurance Company of Wisconsin (ASIC)• American Family Life Insurance Company (AFLIC)• American Family Financial Services, Inc. (AFFS)• American Family Brokerage, Inc.• American Family Insurance Company (AFIC)• American Standard Insurance Company of Ohio (ASICO)• AmFam, Inc.• American Family Securities, LLC
06
05
04
03
02
5 1W 15 WW
ASSETS
$ in billions
year
06
05
04
03
02
1 W W 4 5
equity
$ in billions
06
05
04
03
02
W 4 W W
revenue
$ in billions
year
06
05
04
03
02
WW 4W WW WW
life insurance in force
$ in billions
year
year
AmericAn FAmily insurAnce • 2006 AnnuAl report
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American Family Insurance Group
Consolidated BalanCe sHeetsGAAP basis As of Dec. 31, 2006 (in thousands)
assets 2006 2005
Bonds $9,150,018 $9,197,861Stocks 2,113,635 1,833,172Real estate 280,417 259,900Mortgages 280,461 207,747Other invested assets 206,596 164,507Cash and cash equivalents 193,886 140,701Finance receivables 156,070 180,384Premiums receivable 1,047,742 990,443Investment income receivable 121,573 121,097Deferred acquisition costs 904,425 884,186Policy loans 202,928 194,414Reinsurance recoverable 178,369 81,750Income tax recoverable 95,139 0Furniture and equipment 59,192 44,560Computer equipment 98,120 92,208 Deferred tax asset 92,961 45,053Other assets 115,738 83,848Separate account assets 179,739 114,811
Total Assets $15,477,009 $14,636,642
liaBilities
P/C loss and loss-adjustment reserves $3,535,231 $3,150,082Life reserves and deposit contracts 3,142,900 3,018,464Unearned premium reserves 2,176,635 2,157,570Short-term notes payable 139,973 165,229 Loss drafts payable 257,107 227,098Dividends payable 22,536 21,990Income taxes payable 0 27,223Agent-termination benefits 530,614 396,396Expenses payable 405,960 328,416Other liabilities 197,033 192,349Separate account liabilities 179,739 114,811
Total Liabilities 10,587,728 9,799,628
equity
Accumulated other comprehensive income 522,196 494,371Retained earnings 4,367,085 4,342,643
Total Equity 4,889,281 4,837,014
Total Liabilities and Equity $15,477,009 $14,636,642
American Family Insurance Group
Consolidated stateMents oF inCoMe and equityGAAP basis For the years ended Dec. 31 (in thousands)
Revenues 2006 2005
P/C premiums earned $5,888,041 $5,967,244AFLIC premiums earned 310,130 297,346AFFS finance charges earned 12,074 11,390Net investment income 533,781 511,776Other revenues 45,370 44,068
Total Revenues 6,789,396 6,831,824
losses and expenses
P/C losses incurred 4,291,324 3,432,832P/C expenses incurred 2,279,952 2,070,115Life insurance benefits incurred 260,171 257,046Interest expense 7,712 5,099Other expenses 152,364 177,614
Total Losses and Expenses 6,991,523 5,942,706
Gain from Operations (202,127) 889,118Realized capital gains 103,719 43,446
Income Before Taxes (98,408) 932,564Tax expense (benefit) (122,855) 261,101
Net Income $24,447 $671,463
stateMent oF equity 2006 2005
Beginning equity balance $4,837,014 $4,213,709Net income 24,447 671,463Change in unrealized gains Bonds (18,012) (128,947) Stocks 196,578 39,755 Other invested assets 18,335 8,066 Tax impact of unrealized gains (69,979) 32,632 Other changes in equity, net of tax (270) 366
Other comprehensive income (loss) 126,652 (48,158)
Adjustment to initially apply FASB 158, net of tax (98,832) 0
Change in Equity 52,267 623,305
Ending Equity $4,889,281 $4,837,014
AmericAn FAmily insurAnce • 2006 AnnuAl report
29
pReMiuMs wRitten
American Family Mutual Insurance Company $ 5,336,368* 86%
American Standard Insurance Company of Wisconsin $568,605** 9%
American Family Life Insurance Company $310,130 5%
aMeRiCan FaMily liFe insuRanCe CoMpany
Total insurance in force $75.9 billionNew business issued $11.6 billion
aMeRiCan FaMily FinanCial seRviCes, inC.
Finance loans receivable $156 million
American Family Insurance Group
pReMiuMs wRittenFor the year ended Dec. 31, 2006
American Family Mutual Insurance Company
American Standard Insurance Company of Wisconsin
American Family Life Insurance Company
*Before reinsurance assumed from ASIC and ASICO. Includes AFIC**Includes ASICO
86%
9% 5%
(amounts in thousands)
assets
Bonds $271,682Cash and cash equivalents 31,789Investment income receivable 3,982Reinsurance recoverable 526,151Other assets 29,816
Total Assets $863,420
liaBilities
Loss-adjustment expense reserves $349,216Unearned premium reserves 151,580Loss drafts payable 57,919Income taxes payable 63Deferred-tax liability 3,055Expenses payable 32,696Other liabilities 25,394
Total Liabilities 619,923
equity
Stock and paid-in capital 6,000Accumulated other comprehensive income 4,908Retained earnings 232,589
Total Equity 243,497
Total Liabilities and Equity $863,420
assets
Bonds $6,063,780Stocks, unaffiliated 2,018,532Stocks, affiliated 1,154,115Real estate 280,417Other invested assets 200,677Cash and cash equivalents 96,279Premiums receivable 1,023,002Investment income receivable 85,774Income tax recoverable 94,861Reinsurance recoverable 94,533Deferred acquisition costs 360,589Furniture and equipment 59,192Computer equipment 98,120Deferred tax asset 84,720Other assets 282,192
Total Assets $11,996,783
liaBilities
Property and Casualty loss reserves $2,780,865Loss-adjustment expense reserves 754,366Unearned premium reserves 2,176,635Loss drafts payable 176,443Dividends payable 2,488Agent-termination benefits 530,614Expenses payable 453,325Other liabilities 232,766
Total Liabilities 7,107,502
equity
Accumulated other comprehensive income 519,978Retained earnings 4,369,303
Total Equity 4,889,281
Total Liabilities and Equity $11,996,783
American Family Mutual Insurance Company
BalanCe sHeetGAAP basis As of Dec. 31, 2006 (in thousands)
American Standard Insurance Company of Wisconsin
BalanCe sHeetGAAP basis As of Dec. 31, 2006 (in thousands)
AmericAn FAmily insurAnce • 2006 AnnuAl report
31
assets
Finance receivables $156,070Cash and cash equivalents 1,524Leased assets 1,137Deferred acquisition costs 495Deferred tax asset 422Income taxes recoverable 364Other assets 203
Total Assets $160,215
liaBilities
Notes payable $139,973Deferred tax liability 1,136Other liabilities 417
Total Liabilities 141,526
equity
Stock and paid-in capital 9,000Retained earnings 9,689
Total Equity 18,689
Total Liabilities and Equity $160,215
American Family Life Insurance Company
BalanCe sHeetGAAP basis As of Dec. 31, 2006 (in thousands)
American Family Financial Services, Inc.
BalanCe sHeetGAAP basis As of Dec. 31, 2006 (in thousands)
assets
Bonds $2,800,396Stocks, unaffiliated 95,103Mortgages 280,461Cash and cash equivalents 43,801Policy loans 202,928Investment income receivable 31,680Deferred acquisition costs 543,341Deferred tax asset 10,616Reinsurance recoverable 83,836Other assets 17,888Separate account assets 179,739
Total Assets $4,289,789
liaBilities
Life reserves and deposit contracts $3,142,900Claims payable 14,337Dividends payable 21,768Expenses payable 39,233 Income taxes payable 5,024Other liabilities 13,735Separate account liabilities 179,739
Total Liabilities 3,416,736
equity
Stock and paid-in capital 3,500Accumulated other comprehensive income 13,789Retained earnings 855,764
Total Equity 873,053
Total Liabilities and Equity $4,289,789
David R. AndersonChairman and Chief Executive Officer
Jack C. SalzwedelPresident and Chief Operating Officer
Daniel R. SchultzChief Financial Officer; Treasurer
James F. EldridgeChief Legal Officer; Secretary
Vicki L. ChvalaExecutive Vice President
Bradley J. GleasonExecutive Vice President
Alan E. MeyerExecutive Vice President
Darnell MooreExecutive Vice President
David R. Anderson (Chair) Chairman and Chief Executive OfficerAmerican Family Insurance Group
Craig C. CulverPresident and OwnerCulver Franchising Systems, Inc.
Leslie Ann HowardPresident and Chief Executive OfficerUnited Way of Dane County
Ted D. Kellner, CFAChairman and Chief Executive OfficerFiduciary Management, Inc.
Thomas J. MohsChairman of the BoardPlacon Corporation
Walter M. OliverSenior Vice PresidentHuman Resources and AdministrationGeneral Dynamics Corporation
Barbara A. ParishPresidentWis-Pak, Inc.
Harvey R. PierceRetired Chairman and Chief Executive OfficerAmerican Family Insurance Group
Eliot G. ProtschSenior Executive Vice President and Chief Financial OfficerAlliant Energy Corporation
Richard R. RenkChairman of the BoardWm. F. Renk & Sons
Jack C. SalzwedelPresident and Chief Operating OfficerAmerican Family Insurance Group
Dr. Jerry Sue ThorntonPresidentCuyahoga Community College
Dr. John D. WileyChancellorUniversity of Wisconsin-Madison
Thomas J. ZimbrickChief Executive OfficerZimbrick, Inc.
Mark V. AfableVice PresidentClaims
Donald D. AlfermannSenior Vice President, Sales Mountain Region
Gerry W. BenusaVice PresidentMarketing
R.D. BoschulteVice PresidentAmerican Family Financial Services, Inc.
M. Jeffrey BoscoVice President Life, Variable Products & Health
Byrne W. ChapmanVice PresidentInformation Services
Michael R. DuranVice President, SalesMountain Region
Richard A. FetherstonVice President Public Relations
Carolyn S. GilbVice President, SalesNorthwest Region
Kari E. GraseeVice PresidentController
Thomas S. KingVice President Investments
Annette S. KnapsteinVice PresidentOffice Administration
Richard L. LaVeerVice President, SalesValley Region
Christopher R. ListauVice President, SalesMidland Region
Dennis J. LoperVice PresidentP&C Loss Reserving
Steve G. MaxwellVice PresidentHuman Resources
Jerry G. RekowskiVice PresidentCommercial-Farm/Ranch
Mary L. SchmoegerVice PresidentEducation
Scott J. SeymourVice PresidentGovernment Affairs and Compliance
Paulette L. SiebersVice President Broker/Dealer
Christopher S. SpencerVice PresidentLegal
Richard M. SteffenVice President, SalesGreat Lakes Region
William B. WestrateVice PresidentActuarial
Joseph J. ZwettlerVice PresidentPersonal Lines
2007 oFFiCeRs
BoaRd oF diReCtoRs
AmericAn FAmily insurAnce • 2006 AnnuAl report
33
Some products are not available in every state. To learn more about any of these products orservices, contact an American Family agent or visit our Web site at amfam.com.
aMeRiCan FaMily pRoduCts
These 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.
Personal LinesAuto
BoatownersCondominiums
Custom Value HomeownersHomeowners
Mobile homeownersMotorcycle
Personal liability umbrellaRenters
Snowmobile
Commercial-Farm/RanchBusiness auto
Businessowners policyBusiness key policy
Commercial general liabilityCommercial propertyCommercial umbrella
CrimeNon Profit Directors and Officers Liability
Farm/RanchFarm/Ranch umbrella
Inland marineWorkers compensation
HealthIndividual major medical plans,including an HSA qualified High
Deductible Health Plan*Medicare supplement plansShort-term medical plan**
These products are underwritten by American Family Life Insurance Company.
These products are offered by American Family Financial Services, Inc.
LifeFixed annuities
Term lifeUniversal life
Variable products***Whole life
Life insurance policies that can be used for:• Business needs
• Estate preservation
Financial ServicesCommercial real estate loans
Home equity loans and lines of creditUsed fleet vehicle sales
Vehicle loans
*The High Deductible Health Plan is available in all our operating states except Idaho, Nevada, Utah and Washington**The short-term medical plan is available in all our operating states except Idaho and Washington***Securities offered by American Family Securities, LLC
Our Operating Territory
We’re proud to offer our products in
Arizona, Colorado, Idaho, Illinois,
Indiana, Iowa, Kansas, Minnesota,
Missouri, Nebraska, Nevada, North Dakota,
Ohio, Oregon, South Dakota, Utah,
Washington and Wisconsin.
Our national headquarters is in Madison,
Wis. We also have regional offices in
Columbus, Ohio; Denver; Eden Prairie,
Minn.; Madison; and St. Joseph, Mo.
American Family Mutual Insurance Company and its Subsidiaries6000 American Parkway • Madison, WI 53783-0001
(608) 249-2111 • amfam.com
PR-05642 Rev. 12/06
Visit amfam.com to view the electronic version of
American Family’s annual report.
Select Our Company from the top navigation bar. Then, choose About Us
and Annual Report.