Federated Insurance Company of Canada
Encyclopedia
Federated Insurance Company of Canada ("Federated Insurance") is a direct writer of property
and casualty
insurance products headquartered in Winnipeg, Manitoba, Canada. The Company has approximately 370 employees in nine offices across Canada, with approximately 150 in Winnipeg. Federated Insurance has an A. M. Best rating of "A (Excellent)."
Initially, the Company was known as the Minnesota Implement Mutual Fire Insurance Company, and retained this name for many years. They would later become the Mutual Implement and Hardware Insurance Company, then Federated Mutual Implement and Hardware Insurance Company and, finally, Federated Mutual Insurance Company
("Federated Mutual").
On January 1, 1948, Federated Mutual entered the casualty insurance field, and was one of the first major insurance companies to write both fire and casualty insurance. In November 1949, accident and health coverage was added, with group accident and health insurance being written for various trade associations and employer groups. Federated Life Insurance Company ("Federated Life") was organized in January 1959.
Northbridge Financial Corporation is a financial services holding company that, through its operating subsidiaries, is engaged in property and casualty insurance in Canada and in selected US and international markets. Northbridge is a wholly owned subsidiary of Fairfax Financial Holdings Ltd.
Property insurance
Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance or boiler insurance. Property is insured in two main...
and casualty
Casualty insurance
Casualty insurance, often equated to liability insurance, is used to describe an area of insurance not directly concerned with life insurance, health insurance, or property insurance. It is mainly used to describe the liability coverage of an individual or organization's for negligent acts or...
insurance products headquartered in Winnipeg, Manitoba, Canada. The Company has approximately 370 employees in nine offices across Canada, with approximately 150 in Winnipeg. Federated Insurance has an A. M. Best rating of "A (Excellent)."
History
During the 1890's, the retail implement dealers in Minnesota formed an association, which proved to be very successful. In 1904, these dealers decided to try to reduce their insurance costs by organizing their own insurance company.Initially, the Company was known as the Minnesota Implement Mutual Fire Insurance Company, and retained this name for many years. They would later become the Mutual Implement and Hardware Insurance Company, then Federated Mutual Implement and Hardware Insurance Company and, finally, Federated Mutual Insurance Company
Federated Mutual Insurance Company
Federated Mutual Insurance Company is a direct writer of property and casualty insurance products headquartered in Owatonna, Minnesota. The Company has approximately 2600 employees and operates in 48 states and the District of Columbia, with regional a regional office in Phoenix, Arizona, and...
("Federated Mutual").
On January 1, 1948, Federated Mutual entered the casualty insurance field, and was one of the first major insurance companies to write both fire and casualty insurance. In November 1949, accident and health coverage was added, with group accident and health insurance being written for various trade associations and employer groups. Federated Life Insurance Company ("Federated Life") was organized in January 1959.
Canadian History
- In September 1920, Federated Mutual began operating in Canada.
- By 1933 the sales force had increased from two to 17 representatives, and the annual premium income was approximately $1 million, primarily from hardware and implement business.
- Early in 1944, Federated Mutual aggressively went after and obtained endorsements from farm equipment manufacturers and associations across the country. This paved the way for writing insurance for many farm equipment dealers during the next few years.
- Expanded into the Casualty business in 1948. This brought a tremendous boost to the growth and development of the Canadian operation.
- Federated Mutual entered the life insurance business in Canada effective January 1, 1964.
- Growth continued as the company entered the group health insurance field. Group plans were sold until the provincial governments introduced socialized medicineSocialized medicineSocialized medicine is a term used to describe a system for providing medical and hospital care for all at a nominal cost by means of government regulation of health services and subsidies derived from taxation. It is used primarily and usually pejoratively in United States political debates...
. A supplemental health plan and dental plan was introduced in 1987.
- In November 1987, the Canadian division was converted to a wholly owned corporate subsidiary operation, Federated Holdings of Canada Ltd., which holds all the stock in the two operating subsidiaries: Federated Insurance Company of Canada and Federated Life Insurance Company of Canada.
- On January 1, 1990 Federated Insurance and Federated Life became fully Canadian owned and operated subsidiaries of Fairfax Financial Holdings Ltd. of Toronto, Ontario, when Federated Insurance Holdings of Canada Ltd. was purchased from Federated Mutual.
- In 1998, Contact+ Insurance Network Ltd. was incorporated as a wholly owned subsidiary of Federated Insurance.
- The year 2000 saw Federated Insurance poised to undertake a series of major change initiatives in response to recognized external and internal drivers. Restructuring came about as result of a desire to improve proximity to and relationships with customers, and to generally, work under more efficient processes. Federated also sought to devote considerable resources to the enormous potential represented in various e-business opportunities.
- In April 2003, Fairfax Financial HoldingsFairfax Financial HoldingsFairfax Financial Holdings Limited is a financial holding company based in Toronto, Ontario, which is engaged in property, casualty, and life insurance and reinsurance, investment management, and insurance claims management...
formed Northbridge Financial Corporation to serve as the holding company for their Canadian insurance subsidiaries including, Federated Insurance, Lombard Canada Ltd, Commonwealth Insurance Company, and Markel Insurance Company of Canada.
- In May 2004, Federated Holdings of Canada Ltd. announced an agreement to sell Federated Life to Western Financial Group Inc.
- Effective February 28, 2005, the sale of Federated Life to Western Financial Group Inc. was complete.
Northbridge Financial Corporation is a financial services holding company that, through its operating subsidiaries, is engaged in property and casualty insurance in Canada and in selected US and international markets. Northbridge is a wholly owned subsidiary of Fairfax Financial Holdings Ltd.
Product Range
List of products offered by Federated Insurance Company of Canada:- Commercial Property and Casualty insurance
- LifeLife insuranceLife insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
, disabilityDisability insuranceDisability Insurance, often called DI or disability income insurance, is a form of insurance that insures the beneficiary's earned income against the risk that a disability will make working uncomfortable , painful , or impossible...
, and critical illnessCritical illness insuranceCritical illness insurance or critical illness cover is an insurance product, where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy....
insurance - HomeHome insuranceHome insurance, also commonly called hazard insurance or homeowner's insurance , is the type of property insurance that covers private homes...
and autoVehicle insuranceVehicle insurance is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom...
insurance
Markets
List of markets in which Federated Insurance Company of Canada operates:- Equipment Dealers
- Home-BuildersHome constructionHome construction is the process of constructing a home. Beginning with simple pre-historic shelters, home construction techniques have evolved to produce the vast multitude of living accommodations available today. Different levels of wealth and power have warranted various sizes, luxuries, and...
- Trade Contractors
- Electrical ContractorsElectrical contractorAn electrical contractor is a business person or firm that performs specialized construction work related to the design, installation, and maintenance of electrical systems—a $130 billion industry in the United States....
- Mechanical Contractors
- PrintersPrinter (publisher)In publishing, printers are both companies providing printing services and individuals who directly operate printing presses. With the invention of the moveable type printing press by Johannes Gutenberg around 1450, printing—and printers—proliferated throughout Europe.Today, printers are found...
- Tire Dealers
- RV Dealers
- Motorcycle and Powersports Dealers
- Petroleum Dealers
- Automotive Dealers
- Repair GaragesAutomobile repair shopAn automobile repair shop is a place where automobiles are repaired by auto mechanics and electricians.- Types :The automotive garage can be divided in so many category....