Extreme weather events such as hailstones are on the rise – and, for the past few years, farmers have been taking out increasing amounts of cover. Interest in hail cover jumped after a “pretty hectic” 2021 hail season when there was plenty of crop damage, Scott McQueen, chief operating officer of Palliser Insurance said.
“We see insurance being purchased much earlier than in years past,” he told The Western Producer at the time. 2024 saw nearly 11,000 hail damage claims according to the Canadian Crop Hail Association – with the huge Calgary hailstorm winning the dubious record of being the most catastrophic loss of the year – causing an estimated $3 billion in damage.
And into this complicated picture comes Farmers Mutual Hail Insurance Company of Iowa (FMH) which has just announced its acquisition of Palliser Insurance, a prominent crop insurance provider in Canada. This marks FMH’s first international acquisition and strengthens its presence in the North American agricultural insurance market.
Palliser Insurance, headquartered in Saskatoon, Saskatchewan, is a major player in crop hail insurance in Western Canada. With an extensive network of agents and adjusters, the company has established itself as a key player in the region. FMH, which previously held a 20% stake in Palliser, has worked closely with the company for decades, with FMH executives serving on its board of directors.
Shannon Rutledge, FMH’s president and CEO, highlighted the significance of the acquisition to the US company, stating, “I am excited about this partnership and the impact it will have as we continue to expand and diversify our footprint.”
Rutledge said that the strong partnership between the two companies made this a natural fit. FMH intends to support Palliser’s continued growth and expansion, ensuring it retains its focus on the Western Canadian agricultural sector.
Ken Doleman, president and CEO of Palliser Insurance, echoed similar sentiments regarding the acquisition. “FMH has been a valued business partner with Palliser since 2008.”
Founded in 1893, FMH has been providing insurance solutions for American farmers for over a century. The company remains a Rutledge family-led enterprise.
Palliser Insurance has a similarly rich heritage, with its founding families serving the Western Canadian agricultural sector for over a century. The company is recognized for its highly trained adjusters and dedication to delivering simplified risk solutions tailored to farmers’ needs.
Farmers Mutual Hail Insurance Company of Iowa (FMH) is led by president and chief executive officer Shannon Rutledge, who assumed the role on December 31, 2021. Prior to becoming CEO, Shannon served as executive vice president and chief operating officer, overseeing the Crop Insurance Division since 2015. He has been with FMH for over 27 years, holding various positions across all company divisions.
The company's leadership team includes:
Darin Roggenburg: executive vice president and chief financial officer
Patrick Faga: executive vice president and chief marketing officer
Ron Kuethe: executive vice president and chief risk officer
Aaron Rutledge: executive vice president and chief operating officer
Brent Walker: executive vice president and chief brokerage officer
The board of directors is chaired by Ron Rutledge, who retired as president and CEO in December 2021 but continues to serve as chairman.
In Canada, crop insurance is provided through a combination of government programs and private insurers. The primary government-administered programs include:
Agriculture Financial Services Corporation (AFSC): Operating in Alberta, AFSC offers crop insurance to farmers within the province.
Manitoba Agricultural Services Corporation (MASC): This organization provides crop insurance services to producers in Manitoba.
Saskatchewan Crop Insurance Corporation (SCIC): Serving Saskatchewan, SCIC delivers crop insurance solutions to local farmers.
In addition to government programs, several private insurers play a significant role in Canada's crop insurance landscape. Notable companies include:
The Co-operators: A Canadian-owned multi-line insurer offering farm insurance products, including coverage for crops.
Intact Insurance: Provides insurance solutions tailored to agricultural operations of various types and sizes, encompassing crop coverage.
Rain and Hail Insurance Service Ltd.: A member of the Canadian Crop Hail Association, offering specialized crop hail insurance to producers.
