Two Missouri-based mutual insurers, CFM Insurance, Inc. and
Farmers Mutual Insurance Co. (FMIC) of Grundy County, have approved a plan for a merger presented by both companies’ boards via a unanimous vote.
Upon approval by the Missouri Department of Insurance’s director, John Huff, all insurance policies issued by FMIC will be transferred to CFM, effective January 1, 2017.
Both insurance companies have been in the business for over a century. FMIC was established in 1895, while CFM has been in business since 1869. Currently, CFM has US$20 million in written premiums and over 21,000 policyholders. With the merger, the resulting entity will be one of the most experienced mutual insurers in the state of Missouri. It aims to bring stronger coverage, more stable rates, and reduced reinsurance costs to its clients.
CFM president and CEO Jacob Black and FMIC of Grundy County secretary and treasurer Gary Black issued a joint statement announcing the merger.
“This business relationship over the years has led to a valuable partnership that shares very similar beliefs and a strong history of over 120 years, thanks to such loyal policyholders,” the statement reads. “Like so many things we have seen evolve in our communities, the time had come for FMIC of Grundy County to become part of something bigger. Though big changes are taking place behind the scenes for the company, policyholders won’t see much change other than a new logo on their bills and more payment and coverage options. We are excited for the future and the benefits our policyholders will experience moving forward.”
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