Regarding comments about state farm preparing for a sale. First, I'm no expert so keep that in mind.
I believe since SF is a mutual company, it would need 50% of the policy holders to approve. Also, I believe that the proceeds of the sale would go to the policy holders so management wouldn't greatly benefit. The only way I see a sale occuring would be if SF is near bankruptcy, and that isn't the case.
If anyone has better info, please comment.
For bombing All-State?
4 business jets, the others listed are drones
Anybody know why SF needs 7 jets/airplanes? Can't we cut some of that cost? Seems like this is a big waste of money. Got to be executive perks to have all that number of planes. http://registry.faa.gov/aircraftinquiry/Name_Results.aspx?Nametxt=STATE+FARM&sort_option=1&PageNo=1
It’d take a decade to get through the VMO, EVMO, and risk processes.
“This offer, while apparently good, is unacceptable because they didn’t sign a hold harmless.”
Fair point about SF not needing cash. The idea of a merger is an interesting one. Or maybe they really are just trying to clean up their expense ratios so they can remain competitive long term, which apparently requires nuking the employee base in the aftermath of CDE. Hard to say. All I know is that I wouldn't invest in State Farm even if it went public. I know too much about the upper management to have any faith in anything this company does.
You don’t typically demutualize unless to raise cash. Sf is awash in cash. So much so that even the Oracle of Omaha says sf hordes too much instead of deploying it.
The problem is the expense ratios.
A merger would explain the elimination or trimming back of duplicitous job roles if merging with another insurance company. We'll see how it goes.
Do some research into MHC conversions. There are all kinds of borderline unethical things that can happen under such a scenario.
Hard to believe rumors about the sale
A merger? That is possible...