Ed Rust Jr. addresses Illinois Wesleyan Associates

State Farm CEO Ed Rust Jr. Announces First Quarter Profit, Addresses Illinois Wesleyan Associates Luncheon

May 6, 2003

BLOOMINGTON, Ill -- Ed Rust Jr., chairman and CEO of State Farm, used the annual Illinois Wesleyan Associates Luncheon to announce that State Farm posted a profit in the first quarter of 2003 after two years of significant losses.

Rust, a 1972 Illinois Wesleyan graduate and a member of the University's Board of Trustees, was the principal speaker for the event that brings members of the Bloomington/Normal business community together to recognize their support of the University.

• Listen to Ed Rust Jr.'s speech (Real Audio required)

The Illinois Wesleyan Associates are business and professional leaders interested in the advancement and support of independent higher education. Founded in 1953, the Associates participate in a wide range of Illinois Wesleyan activities, and assist in funding scholarships for students from McLean County.

In addition to recounting several memories from his own student days at Illinois Wesleyan, Rust cited the importance to State Farm of a strong education system in Bloomington/Normal. "This is critical to any community's well-being, and it is imperative for State Farm," he said. "It obviously helps ensure that we'll have a quality source of future employees, but, equally important, it makes Bloomington/Normal a place to which current State Farm employees with children are willing to relocate."

State Farm Chairman and CEO Ed Rust Jr., right, talks with Illinois Wesleyan Acting President Janet McNew following the Illinois Wesleyan Associates luncheon.

He described the historic relationship between the University and State Farm, noting that many Illinois Wesleyan students have internships at State Farm and many others take jobs with the company. Illinois Wesleyan is the only undergraduate liberal arts college in the country that offers a major in risk management.

Rust also took advantage of the occasion to give a report on the current status of State Farm as well as to take educated guesses about the future of the company as it relates to the community. Despite the losses in 2001 and 2002, Rust said that State Farm remains one of the most financially strong companies in the insurance industry. He said that the profit trend is expected to continue "barring major catastrophes from Mother Nature or the financial markets."

State Farm currently has 14,096 employees in Bloomington/Normal, which is about 600 fewer than it had at the start of last year. Rust said the local community cannot expect the kind of local State Farm job growth that occurred in the 1990s and predicted the company's employment base in Bloomington/Normal and McLean County will remain relatively stable in coming years.

"It's a projection -- not a promise," he said. "It's a prediction based on many assumptions about some things that are within our control, but many that are not."

More than 570 Associates and guests attended the annual event in The Shirk Center.