American Family Insurance has moved up to 254 on the Fortune 500 list from 306 last year, ranking it as a Fortune 300 company for the first time. Strong financial management, revenue growth and strategic acquisitions contributed to this significant jump. Since 2015, the company has moved up 104 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.
This ranking reflects growth across the American Family enterprise, bolstered by the October 2018 merger with Jacksonville, Florida-based Main Street America and the acquisition of De Pere, Wisconsin-based Ameriprise Auto & Home, now called CONNECT, powered by American Family Insurance, which closed in October 2019.
Group revenue increased to $12.6 billion in 2019 from $10.3 billion in 2018.
“Strong organic premium growth, plus our recent mergers and acquisitions, supported our first-time ranking as a Fortune 300 company,” said Dan Kelly, chief financial officer. “Our financial strength as a national enterprise is more important than ever as we take care of even more customers and support our employees and agency owners at this uncertain time for many.”
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.
This year’s Fortune 500 marks the 66th edition of the ranking of America’s largest companies. In total, Fortune 500 companies represent two-thirds of the U.S. economy with $14.2 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. 254 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 American Family Connect Property and Casualty Insurance Company, the proposed new legal name of Ameriprise Auto & Home, 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.