For years, I have felt the necessity of a mutual insurance against hail by farmers. During the growing season, every black cloud which appeared on the horizon has caused a feeling of uneasiness, and we have felt how the waving and ripening grain might have been mowed down by this terrible destroyer. Last March 1893, the farmers themselves came together and organized The Farmers Mutual Hail Insurance Association. The members are jubilant and believe they have at last got something that meets their wants."
Our History
Founded 1893: FMH Becomes a Mutual Association
Following the company's inception, W. A. secures 250 members through the solicitation of handwritten letters and printed materials. His wife, Jessie, handwrites 2,650 policies in three months’ time. W. A. ceases his occupation as a farmer and travels the countryside in pursuit of new policyholders. It is around this time that the family moves to Early, Iowa. FMH sets up office in the Early State Bank.
The Company Grows - and Moves
W. A. and Scott Rutledge commence the publishing of "Western Farmers' Institute," a monthly journal to communicate mutual insurance matters. FMH moves offices from Early, Iowa, to Des Moines, Iowa. Scott Rutledge rode around the countryside to meet with policyholders individually.
W.A. Rutledge Organizes NAMIC
W. A. calls a meeting of insurance executives to address the need for a National Trade Association. Thus, the National Association of Mutual Insurance Companies (NAMIC) is established, though at first it's known as the 'National Association of Cooperative Mutual Insurance Companies,' with W.D. Forbes at the helm as President and W. A. Rutledge at his side as Secretary.
FMH Experiences First Major Deficit
Crop failure and low commodity prices coupled with high hail loss, leaves the company in a $25,000 deficit. The Board members borrow against their personal credit to pay indemnities. This results in policyholder loyalty and confidence in the company's sustainability.
Board of Directors
- 1902 - FMH Board of Directors Becomes a Rutledge Majority
Following an attempted takeover of the Board in 1902 coupled with high loss ratio years, W. A. places family members on the Board to strengthen the company's leadership and ensure its survival. FMH maintains a Rutledge family majority Board from this point forward, experiencing long-term stability and strength.
- 1905 - "Value Per Acre" Claim Payments Are Implemented
The Board allows insurance to be written on a fixed value given to a crop, rather than then-common method of paying a claim on the market price per harvested bushel of the crop. This new method, the brainchild of W. A. and J. C. Baker, proves easier and more straightforward during a claim payment than the previous methods of determining yields and market prices. In the new manner of payment, the loss is determined on the percent of the crop lost. As a result, the concept of Value Per Acre is written into the Articles of Incorporation in 1913. This method of adjusting hail losses continues today.
- 1922
FMH Extends Crop Hail Business Into Nebraska
FMH continues to expand its writing area, moving into Nebraska. The expansion ultimately proves successful, and paved the way for FMH to begin growing its writing area even further.
- 1923
FMH Takes Control of Farmers Mutual Hail Insurance Company of Rockport, MO
The division is managed by Paul Rutledge, W. A.'s son. Over 60 years later, during the 1980s, the company is absorbed into The Columbia Group.
- 1932
FMH Extends Crop Hail
Business Into WisconsinAs the company expands its business in the Midwest, it also begins offering other kinds of insurance. In WI, FMH offers coverage for the first time for specialty crops.
- 1936
FMH Begins Writing Fire Insurance on Town Dwellings
FMH continues to show its dedication to expanding its product line.
- 1941
Farmers Mutual Hail Insurance Association of Iowa becomes Farmers Mutual Hail Insurance Company of Iowa
- 1950
Writing of Multiple Lines of Insurance is Approved by the State of Iowa.
- 1960
FMH creates test fields to educate adjusters.
1970
FMH installs its first electronic computer.1970's - FMH Implements Agreement of Settlements Based on a Percentage of Loss
Prior to this change, adjusters had been responsible for calculating loss payment dollar figures in the field, a tedious and lengthy process. In an effort to streamline adjuster’s workload, FMH implements a new system which allows adjusters to reach an agreement with the insured on the percent of crop that is damaged due to hail, then sent to the Home Office to calculate the actual claim figure based on the policy holder’s insurance agreement.
1993 - FMH Celebrates 100-Year Anniversary
The year-long centennial celebration included special edition pink pencils, a commissioned book about the history of the company, and even an employee choir singing at the 100th annual meeting. The business also reached its first year of $2 billion in-force by the end of the production season in the year leading up to the 100th anniversary.
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- FMH Offers Federal Crop Insurance
FMH starts offering Multi-peril Crop Insurance, a program through USDA’s Risk Management Agency (RMA). This allows FMH to be more competitive and provide expanded crop insurance options for farmers. - New Headquarters
FMH moves into new headquarters in West Des Moines and Farmers Union Co-operative also moves office operations from Omaha, Nebraska, to FMH's new headquarters later in the year. - FMH Property and Casualty Division
On April 1, 2011 Central Iowa Mutual Insurance Association merged into FMH, creating the FMH Property and Casualty Division located in Story City, Iowa.
FMH ACQUIRES
John Deere Insurance Company
On April 1, 2015, Farmers Mutual Hail acquired John Deere Insurance Company, allowing FMH to expand its superior service and expertise to a national market, and bring in new policy and claims reporting opportunities with Precision Ag technology.
2018
FMH Celebrates 125th Anniversary
Since forming in 1893, FMH has remained committed to providing America’s farmers with comprehensive risk management solutions. Current operations include private and federal crop insurance, reinsurance products and services, as well as farm and ranch insurance. The company serves a national writing area of 41 states.
FMH partners with Climate FieldView™
to launch a first-of-its-kind reporting connection for seamless crop insurance reporting with precision data.
FMH launches the Brokerage Division to expand ag product offerings
Through this new division, FMH creates Ag Brokerage Solutions, an ag-focused wholesale brokerage; Pledge Insurance Advisors, a retail agency to support P&C opportunities for crop agencies; and Pledge Insurance Network, an aggregator built to support independent rural agencies.
FMH Acquires Global Ag Insurance
to expand the company’s national spread of risk, creating more stability when weather events impact regions.
FMH Acquires Palliser Insurance
a Canadian crop hail insurance company, in which FMH had been a partner company to for decades.