American Family moves up 22 spots on Fortune 500 list
During a challenging year for many, customer focus remained steadfast
Strong financial management, revenue growth and a commitment to customers contributed to a significant move up the Fortune 500 rankings.
American Family Insurance has moved up to 232 on the Fortune 500 list from 254 last year. Strong financial management, revenue growth and a focus on customers during a year marked by uncertainty and challenges contributed to this significant jump. Since 2016, the company has moved up 100 spots.
Fortune bases its rankings on total revenues, including earned premium, investment income, net realized capital gains and other income for the company’s fiscal year.
The ranking comes during a year when the American Family Insurance group provided more than $500 million in pandemic-related premium relief to customers because they were driving less and having fewer accidents. In April 2020, American Family was the first auto insurer to announce it would provide such relief, which continued into 2021.
“We did the right thing by offering premium relief to customers – and still had a strong year financially,” said Dan Kelly, chief financial officer. “We’re proud to have moved up the Fortune 500 list, and even prouder of how our thoughtful and balanced approach helped us take care of our customers and communities when they needed us most.”
The company’s customer loyalty and satisfaction measures were very strong in 2020, contributing to group revenue increasing to $13.1 billion in 2020 from $12.6 billion in 2019.
The Fortune 500 ranking reflects 2020 results across the American Family group of companies, and is bolstered by the first full year of premium from DePere, Wisconsin-based CONNECT, powered by American Family Insurance, which was acquired in October 2019.
In addition to the incremental premium from CONNECT, strong growth at American Family subsidiary Homesite, which sells property insurance online and through partners, contributed to the group’s 2020 revenue increase, as did growth at The General, a group company that sells direct non-standard auto insurance.
The Fortune 500 ranking requires the use of Generally Accepted Accounting Principles (GAAP). American Family first used GAAP in 1996, and first appeared on the Fortune 500 list at No. 403 in 1997.
The global pandemic affected this year’s overall rankings, with companies having a strong focus on technology, ecommerce and digital capabilities moving up or landing on the list for the first time, while many in the travel and tourism industry dropped in the rankings or fell off the list altogether.
This year’s Fortune 500 marks the 67th edition of the ranking of America’s largest companies. In total, Fortune 500 companies represent two-thirds of the U.S. economy with $13.8 trillion in revenue.
About the American Family Insurance group
Based in Madison, Wisconsin, American Family Insurance has been serving customers since 1927. We inspire, protect and restore dreams through our insurance products, exceptional service from our agency owners and employees, community investment and creative partnerships to address societal challenges. We act on our belief in diversity and inclusion by constantly evolving to meet customer needs and preferences. American Family Insurance group is the nation’s 13th-largest property/casualty insurance group, ranking No. 232 on the Fortune 500 list. The group sells American Family-brand products, primarily through exclusive agency owners in 19 states. The American Family Insurance group also includes CONNECT, powered by American Family Insurance, The General, Homesite and Main Street America. Across these companies the group has more than 13,500 employees nationwide.
FORTUNE 500 Methodology:
Companies are ranked by total revenues for their respective fiscal years. Included in the survey are companies that are incorporated in the U.S. and operate in the U.S. and file financial statements with a government agency. This includes private companies and cooperatives that file a 10-K or a comparable financial statement with a government agency, and mutual insurance companies that file with state regulators. It also includes companies that file with a government agency but are owned by private companies, domestic or foreign, that do not file such financial statements. Excluded are private companies not filing with a government agency; companies incorporated outside the U.S.; and U.S. companies consolidated by other companies, domestic or foreign, that file with a government agency. Also excluded are companies that failed to report full financial statements for at least three-quarters of the current fiscal year. Percent change calculations for revenue, net income, and earnings per share are based on data as originally reported. They are not restated for mergers, acquisitions, or accounting changes. The only changes to the prior years’ data are for significant restatement due to reporting errors that require a company to file an amended 10-K.