On November 17, 2016, CFM Insurance, Inc., held a special joint meeting at the home office for policyholders of Farmers Mutual Insurance Company of Grundy County and CFM to approve the Plan of Merger presented by the Board of Directors for both companies. A unanimous vote successfully finalized the affiliation between the two companies over the last two years. Pending formal approval by Director John Huff with the Missouri Department of Insurance, all FMIC of Grundy County polices will transfer over to CFM, effective January 1, 2017.
Both CFM and FMIC of Grundy County have deep roots in the insurance industry. FMIC of Grundy County has been in operation since 1895 and CFM has insured Missouri families and businesses since 1869, with $20 million in written premium and over 21,000 policyholders. With this merger, the united companies will become one of the strongest and oldest mutual legacies in the state of Missouri, bringing numerous advantages for policyholders, including:
- Rate stability - Insurance costs have reflected a consistent pressure to increase as a result of weather-related losses. This affiliation will help stabilize rates with a larger area of exposure outside of Grundy and the surrounding counties, to the entire State of Missouri.
- Reduced reinsurance costs - With a larger spread of risk and greater purchasing power, reinsurance costs will likely reduce and/or stabilize with future policy renewals. Reinsurance costs are a base factor to the premium rates paid by all policyholders.
- More abundant resources - As a larger mutual company, the needed expertise and resources to deal with the Missouri Department of Insurance regulations and examination process will be plentiful.
- Policy strength - Our main purpose is to furnish strong insurance at a reasonable cost. This merger will further this cause while allowing for the continuation of friendly,dependable, and local service.
A joint statement from CFM President/CEO, Jacob Black and FMIC of Grundy County Secretary/Treasurer, Gary Black, reflects a positive outlook regarding this merger:
“This business relationship over the years has led to a great partnership that shares very similar beliefs and a strong history of over 120 years, thanks to such loyal policyholders. Like so many things we have seen evolve in our communities, the time had come to 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.”
For more information on this announcement, contact Jacob Black directly at 660.463.2223, ext. 1111.