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2017 Annual Report

Message from the President

In 1877, Ulysses S. Grant was finishing his presidency, Thomas Edison had just invented the phonograph, and the current Indiana Statehouse was just an idea. It was also the year that a group of farmers from Montgomery and Fountain counties founded the company that would become Indiana Farmers Insurance. In 2017, we celebrated our 140th year. Our longevity and success are fostered by our core values and our mission to serve our members. However, we cannot afford to be complacent and rest on past accomplishments.

Benjamin Franklin quoteEvery company wants to move ahead; to be bigger, stronger, and most of all, to serve customers better. Indiana Farmers Insurance is no different. The path we will forge depends on what we do right now.

We begin from a position of strength, which is defined by continued growth, sound financial principles, and adding to your security fund. In 2017, our revenue from insurance policies grew more than 6 percent to $225.8M. We had the privilege of serving members who chose to purchase or renew 161,454 policies, and we paid more than $129 million for losses and loss expenses to members and on their behalf. Our financial performance was solid as surplus increased to an all-time high of more than $210.3 million. All of this means we are well positioned to be your financial safety net.

Our path will take us to new marketplaces. Leveraging our strong financial position, we are making plans to expand our footprint to Illinois and will be open for business there in 2019. We are evaluating other markets in the Midwest and setting in motion a strategy that will propel the company into its next 140 years.

Throughout our history we have counted and relied on independent insurance agents to guide our members to the insurance solutions that best meet their needs. Today more than 2,200 associates from 227 agencies work to serve our common clients each day. We are proud to serve alongside this group which named Indiana Farmers Insurance the 2017 Insurance Company of the Year.

From a customer perspective, insurance companies probably look an awful lot alike. Most companies do the same things in much the same way as they have for decades. Indiana Farmers Insurance has broken away from the herd, and we believe we have positioned the company to be delightfully different.

More than two years ago we began asking members about their insurance experience so that we could better understand and react to their needs. In 2017, we began work on a new digital interface so that members could access their insurance accounts anytime from any device. We are enhancing coverages afforded by our policies so that our products keep pace with the way members live, work, and farm. We are developing better pricing tools so that members pay no more for insurance than what is necessary. We are investing in our people, our culture, and our workspace so that those who serve have the best possible means to do so. We are doing all this so that we can be better than the rest; so that we can be the smart insurance choice for you.

We continue to move forward, mindful of where we have been and deliberate about where we are going.


Kim Smith





President | CEO


2017 Financial Highlights
 
Assets  
Cash and short term investments $   46,810,060
U.S. Government Bonds 1,515,225
Other bonds 272,960,161
Stocks (at market) 32,504,045
Real Estate (net) 160,265
Reinsurance on recoverable on paid losses 1,116,667
Premium in course of collection 3,543,529
Premium installments not yet due 57,503,273
Other admitted assets 17,162,268
Total Assets $ 433,275,493
   
Liabilities and Surplus  
Reserve for claims, etc. $   91,212,880
Reserve for unearned premium 110,387,296
Reserve for expenses, taxes, etc. 20,555,035
All other liabilities 814,981
Total Liabilities $ 222,970,192
   
Policyholder Security Fund $ 210,305,301
   
Total Liabilities & Policyholder Security Fund $ 433,275,493
   
Total Losses & Loss Expenses Incurred $ 129,407,074
   
Direct Premium Written $ 225,800,638


Total Assets and Policyholder Security Fund
 



Officers

Kim O. Smith

President and Chief Executive Officer

Jennifer D. Pressley
Senior Vice President, Chief Financial Officer, Treasurer

Glenn A. Toren
Senior Vice President, Chief Operating Officer

J. Barton Anderson III
Vice President, Chief Vision Officer

W. Ryan Campbell
Vice President, Chief Information Officer

Buren E. Jones
General Counsel, Secretary

Kevin M. Kelly
Vice President - Sales & Strategic Initiatives

Rick A. Marden
Vice President - Underwriting

Cynthia D. Mehrtens
Vice President - Claims

Chad M. Beehler
Assistant Vice President

K. Scott Hartzell
Assistant Vice President

Scott D. MacWilliam
Assistant Vice President

Scott W. Miller
Assistant Vice President

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Board of Directors

Judith G. Palmer
Board Chair

Mark A. Bates
Board Vice Chair

Jeffrey G. Belskus
Board Member

D. William Biddle
Board Member

Kedwin D. Graber
Board Member

David N. Griffiths
Board Member

David M. McIntosh
Board Member

Diann E. McKee
Board Member

Kelly D. Pfledderer
Board Member

Kim O. Smith
Board Member

Daniel E. Stone
Board Member

James D. Strietelmeier
Board Member

Click here for a printable version of our Annual Report.
 

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