Federated Mutual Insurance Company
Encyclopedia
Federated Mutual Insurance Company ("Federated") 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 several service offices located throughout the country. Federated has an A. M. Best rating of "A+ (Superior)."
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.
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 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 several service offices located throughout the country. Federated has an A. M. Best rating of "A+ (Superior)."
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").
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.
News and Events
- At the Annual Meeting of the Policyholders held on April 19, 2011, Federated Insurance Companies reported that the Owatonna-based company ended 2010 in its strongest financial position in the company’s 107-year history.
- On December 9, 2010 Federated Insurance Companies acquired the renewal rights of American Hardware Mutual Insurance Company in selected states, the first such move in the company’s 100-plus year history.
- In July, 2010 Federated Mutual Insurance Company and Federated Life Insurance Company were named to the 2010 Ward’s 50® groups of top performing insurance companies. Federated is one of only two organizations that has had affiliated companies named to both the property-casualty and life-health Ward’s 50 group of companies every year since 2001.
- In December, 2009, The Horatio Alger Association of Distinguished Americans has announced that Albert T. Annexstad, chairman of the Owatonna-based Federated Insurance Companies, will be among the 11 recipients of the 2010 Horatio Alger Award.
- On January 1, 2009, Jeffrey Fetters, the former president and chief operating officer of Owatonna-based Federated Insurance Companies, became the company’s new chief executive officer, succeeding then current CEO Al Annexstad.
Product Range
List of products offered by Federated Mutual Insurance Company:- 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 - HealthHealth insuranceHealth insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
insurance
Markets
List of markets in which Federated Mutual Insurance Company operates:- Auto dealers and auto parts wholesalers
- Building contractors (materials, hardware, electrical, plumbing-heating-cooling)
- Equipment dealers (agricultural, lawn and garden, construction)
- Funeral directors
- Jewelry retailers
- Machine and tooling shops
- Petroleum marketers and convenience stores
- Printers
- Tire dealers