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After an underwriting loss of $7B on auto policies in 2016, insurance giant State Farm will close 11 facilities in the U.S. and displace more than 4,000 employees, some of whom will relocate to Dallas, Atlanta and Phoenix, the Indianapolis Business Journal reports.
Parsippany, New Jersey, and Petaluma, California, facilities will close in 2018. Kalamazoo, Michigan; Irvine, California; and Tulsa, Oklahoma, will close in 2019. Medley, Florida, Indianapolis, Indiana, Downers Grove, Illinois, and West Lafayette, Indiana, will close in 2020. Bakersfield, California, and Frederick, Maryland, will close in 2021.
The 288K SF Tulsa office and 106K SF Kalamazoo office are behind a large CMBS loan securitized in 2014.
The Bloomington, Illinois-based company announced the consolidation on Thursday.
A State Farm spokesperson said the company is exiting leased facilities. State Farm profits dropped to $400M in 2016 from $6.2B in 2015. The company has nearly 70,000 employees. State Farm’s 2M SF regional hub in Richardson, Texas, houses about 8,000 employees.
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