To provide flexibility for the company's property-casualty operations
Farm Bureau Mutual Insurance will move forward to be reorganized into a mutual holding company structure. The Iowa Insurance Commissioner has approved the plan. The plan of reorganization were approved by Farm Bureau Mutual policyholders on October 30, and with the insurance department’s approval this week, the plan will take effect on January 1, 2010.
According to Farm Bureau Mutual, it will form a mutual insurance holding company to be named Farm Bureau Mutual Holding Company (MHC), and Farm Bureau Mutual will be reorganized as a stock property and casualty insurance company named Farm Bureau Property & Casualty Insurance Company.
The company will also organize an intermediate holding company named Farm Bureau Multi-State Services. In addition, all Farm Bureau Property & Casualty Insurance Company shares will be owned by Farm Bureau Multi-State Services and all Farm Bureau Multi-State Services shares will be owned by MHC.
Bruce Trost, executive vice president of Operations at Farm Bureau Mutual Insurance Company, said: “We are pleased to be able to move this plan forward. The new organizational structure provides greater flexibility for our property-casualty operations, and it will allow us to be even more competitive in the marketplace. That’s a good thing for consumers in the markets we serve.”
Farm Bureau Mutual Insurance Company is affiliated with the Farm Bureau Financial Services and they underwrite, market and distribute financial services products, including property-casualty insurance products and services, life insurance, investments and annuities to individuals and small businesses.