Federated Insurance Shares Impressive Financial Results and Dedicates Quarter Century Club Tribute to Long-term Employees during 112th Annual Policyholder Meeting
Federated Insurance Companies held its 112th Annual Meeting of Policyholders on Tuesday, April 19, 2016, at the Company’s Home Office in Owatonna, Minnesota. Federated Insurance Chairman, President and CEO Jeff Fetters presided over the meeting, which was open to policyholders and invited guests.
During the President’s report, Fetters presented the organization’s record-setting year-end financial results. Despite 2015 being characterized by low investment returns and uncertainty within the group health industry, Federated Insurance strengthened its financial position. Fetters credits the company’s success to disciplined underwriting, conservative reserving practices, prudent investment strategies, direct marketing approach, reinsurance operations, efficiency gains, and strengthened sense of purpose among Federated’s workforce. Year-end results include:
- Record-setting total premium, total assets, total invested assets, policyholder surplus, property and casualty, premium, group health premium, new group health account sales, and life and disability income premium
- Consolidated assets reached $6.6 billion
- Property and casualty premium grew eight percent
- Federated’s policyholders’ surplus, which directly reflects the Company’s ability to pay claims, grew to $2.86 billion
- Federated’s combined ratio, which directly reflects underwriting success, was 92.6 percent
- Federated was rated A+ (Superior) by insurance industry analyst A.M. Best® Company due to its superior risk adjusted capitalization, historically solid operating profitability, niche market profile, and endorsements from state, regional, and national trade associations
- Federated donated more than $1.2 million to local charitable causes
- The Federated Challenge® raised more than $2.5 million for Minnesota’s Big Brothers Big Sisters® agencies
Following the review of operational results, Fetters unveiled the company’s new Quarter Century Club Tribute, which is located at the A.T. Annexstad Building in Owatonna. This multi-piece display spans the length of a wall and is engraved with the names of every employee who has achieved 25 years of company service. Fetters explained, “Federated Insurance is rich with people who dedicate their careers to helping American businesses succeed. We owe much of our proud history and bright future to these committed professionals who bring our mission to life with vision, integrity, and purpose for 25 years or more. This wall honors their commitment to the organization.”
Retiring Director Jay Gress II and his wife Dale were recognized during the meeting, and presented with a resolution honoring their faithful Board service. “Since 2001, Jay has been a thoughtful voice for the petroleum industry on the Federated Insurance Board of Directors. We are thankful for his insight and passion,” Fetters said. “Jay and Dale will be greatly missed.”
Meeting proceedings also included Board of Directors elections. Dave Frame, owner of Bob Frame Plumbing and Heating, Inc. in South Bend, Indiana, was elected to a two-year term. Directors Paul Dröher and Lester Killebrew were re-elected to three-year terms.
Federated’s 2016 Chairman’s Career Award recipient is Senior Marketing Representative Paul Wilke of Milwaukee, Wisconsin. Wilke, along with his wife Barb, was recognized during the meeting for his career-long achievements as a marketing representative. The Chairman’s Career Award is the highest recognition a marketing representative can receive. It is presented to individuals who have recorded outstanding marketing careers of superior policyholder service for 25 years or more, sustained high performance levels, and gained the trust of their clients and colleagues. Wilke’s name will be inscribed on a plaque of all Chairman’s Career Award recipients, which hangs in Federated’s Home Office.
Founded in 1904, Federated is a national insurance and risk management organization that serves the property, casualty, health, and life insurance needs of clients in select industries. The Company maintains principal underwriting offices in Owatonna and Phoenix.