The State Farm Mutual board of directors has selected President Jon Farney as the company’s next Chief Executive Officer. Farney will succeed retiring CEO Michael Tipsord on June 1.

Farney joined State Farm in 1993 and has served in a variety of executive leadership roles including assistant vice president–securities products, assistant vice president–planning & analysis, vice president–financial operations and operations vice president – underwriting. He was named senior vice president, treasurer and chief financial officer in January 2016.

Farney also succeeded Tipsord as president of State Farm Mutual Automobile Insurance Company on January 1, 2024.

“Jon and I have worked together for many years. I’ve seen how much he cares about State Farm, how much he cares about the people at State Farm, how he solves problems, and how focused he is on taking care of our customers,” said Tipsord at a meeting of State Farm leaders Thursday, according to a media statement. He also noted Farney’s key role in the company strategy in the last several years.

Farney, noting that he will be privileged to lead State Farm’s team of more than 19,000 independent contractor agents and 65,000 employees, stated, “We’ll push ourselves to continually improve so we’re positioned to help even more people manage the risks of everyday life, recover from the unexpected and realize their dreams.”

Addressing other company leaders, Farney stressed that “the company’s long-held focus on the customer will carry forward, with an eye toward further enhancing digital capabilities and leveraging the unique talents of agents and employees throughout the country,” according to State Farm.

Tipsord took the helm of the company in 2015. Since that time, State Farm has grown from more than 83 million policies to serving more than 94 million policies and accounts, the company statement said. In addition the net worth of the organization stood at nearly $135 billion at yearend 2022, up from roughly $83 billion in 2015.

Like other personal lines insurers, State Farm suffered significant underwriting losses in the last two years. For 2023, underwriting losses climbed to $14 billion, a record for the 102-year old company.

State Farm remains the nation’s leading Auto and Home insurer, the statement noted.

Tipsord began his State Farm career in 1988. Before becoming CEO and president in 2015, he served as vice chairman and chief financial officer in 2004, and as chief operating officer in 2011.

He was elected chairman of the board of State Farm Mutual Automobile Insurance Company in June 2016, and he will continue to serve as chairman when Farney becomes CEO later this year.

Source: State Farm