Understanding Farmers Mutual Insurance Company of Nebraska

Farmers Mutual Insurance Company of Nebraska (FMIC) is a regional insurance provider that has been serving policyholders in Nebraska for over 125 years. As a mutual insurance company, FMIC is owned by its policyholders rather than shareholders. This structure allows the company to focus on providing quality insurance products and services, rather than maximizing profits. In this article, we’ll take a closer look at Farmers Mutual Insurance Company of Nebraska, including its history, leadership, financial strength, products, and community involvement.

A Long History Rooted in Nebraska

FMIC was first established in 1894 under the name Farmers Mutual Insurance Company of Nuckolls County. The company was founded by a group of local farmers who wanted to create an insurance provider that would serve the needs of rural Nebraskans. In those early days, FMIC only offered fire insurance policies to help protect barns, homes, equipment and livestock.

Over the decades, FMIC expanded across the state of Nebraska. By the late 1960s, the company had agents in nearly all 93 counties and changed its name to Farmers Mutual Insurance Company of Nebraska. While no longer just serving Nuckolls County, the company maintained its close connections to rural communities across Nebraska.

Today, FMIC continues to serve as a key insurer for Nebraska’s agricultural producers and rural residents. However, the company also provides insurance for urban customers across the state. After 125+ years, FMIC maintains its mission to provide broad, quality insurance coverage at the lowest possible cost.

Policyholder-Focused Leadership

As a mutual insurance company FMIC is overseen by a board of directors who are policyholders themselves. This helps ensure the leadership intimately understands the insurance needs of the company’s customer base.

The current president and CEO of Farmers Mutual is Robert C. Baker, who has extensive experience across the insurance industry. Notably, Baker worked his way up the ranks at FMIC over a 25+ year career before assuming the role of president and CEO in 2010.

The senior leadership team includes several other long-tenured employees, like Senior Vice President Michell Kellogg, who has been with the company for over 15 years. The executive team also includes Chief Financial Officer Deena Hamik and Vice President of Operations Jim O’Gara.

FMIC’s commitment to promoting from within and maintaining continuity in its leadership has helped the company retain its policyholder focus over its 125+ year history. The leadership team has guided the insurer through challenges like natural disasters while preserving its financial strength.

Maintaining Excellent Financial Ratings

As an insurance company, financial strength is critical to ensure FMIC can pay out claims even in tough circumstances. FMIC has maintained an excellent financial rating for decades, positioning the company to serve Nebraska policyholders for years to come.

FMIC has earned an A- (“Excellent”) rating from A.M. Best, an organization that evaluates the financial strength of insurers. This rating is based on balance sheet strength, operating performance, business profile and other factors. FMIC has maintained the excellent A- rating for over 20 years.

The company also has a Comdex financial strength rating of 92 out of 100 from Verisk Analytics. This places FMIC in the “Superior” category and indicates low credit risk. Only around 10% of insurers receive a Comdex score above 90.

These strong financial ratings reflect the company’s conservative investment strategy, reinsurance programs and effective expense management. While paying over $48 million in claims in 2021, FMIC maintained sufficient capital and liquidity. The mutual company structure also provides financial stability without the need to maximize shareholder dividends.

Offering a Range of Insurance Products

Originally offering just fire insurance today FMIC provides a comprehensive range of insurance products for both personal and commercial customers

• Auto Insurance: FMIC offers auto insurance policies that can bundle together liability, collision, comprehensive and other standard coverages. Customers can also add extras like rental reimbursement and towing.

• Home Insurance: Home insurance from FMIC provides protection for the structure, personal belongings and liability risks associated with homeownership. Customers can choose from different levels of coverage.

• Farm Insurance: FMIC offers specialized farm insurance to cover risks like crop damage, livestock mortality, equipment breakdown and liability. Farm coverage options address ag-specific needs.

• Life Insurance: FMIC provides term life, whole life and universal life insurance policies to protect loved ones. Customers can purchase coverage amounts to fit their budget.

• Business Insurance: From property and liability to workers’ compensation and commercial auto, FMIC serves small and mid-sized Nebraska businesses with customized coverage.

FMIC insurance agents have expertise across this wide range of insurance products. Local agents help customers identify the right insurance solutions for their needs and budget.

Close Connections to Rural Communities

While serving customers statewide, FMIC maintains close connections to Nebraska’s agricultural community. The company insures farms across the state and has a legacy of supporting rural towns.

For example, FMIC provides scholarships to students who live or work on farms and ranches. The company also sponsors leadership programs and other agricultural education initiatives. FMIC agents and employees volunteer at county fairs and other community events.

The company also has a history of promptly responding when disaster strikes rural areas. After wildfires, floods, tornadoes and hailstorms, FMIC dispatchers are on the scene quickly to help impacted policyholders. The company supports rebuild efforts across Nebraska’s small towns.

FMIC’s agricultural roots and continued focus on embodying rural values like integrity, stability and kindness have helped the insurer maintain close ties to farming communities for over a century. The company shares both the risks and rewards with Nebraska’s agricultural producers.

Looking to the Future

While FMIC honors its long history and mutual company structure, the insurer also leverages technology to better serve 21st century customers. Policyholders can now manage their policies, file claims and make payments online or via the FMIC mobile app.

FMIC also uses advanced data analytics tools to refine underwriting, manage risks and identify new product opportunities. However, the company balances technology with a continued focus on local relationships. Nebraska customers still have access to knowledgeable local agents.

As FMIC celebrates its 125th anniversary in 2019, the company is well positioned to continue serving Nebraska for the next 125 years and beyond. The insurer’s strong financial footing, long-tenured leadership, diverse product portfolio and connections to rural communities provide a solid foundation for the future.

While no one can fully predict the risks and insurance needs of tomorrow, policyholders can feel confident that Farmers Mutual Insurance Company of Nebraska has the stability and experience to evolve with them. The company has expertly adapted to meet the changing needs of Nebraskan families and businesses for generations. That commitment to serving policyholders will remain unchanging even as FMIC moves into the future.