2019 Annual Report

Yesterday, Today, and Tomorrow

Annual reports are about yesterday. They are about last year’s ambitions, goals, and results. Just a few months removed from 2019, our world has changed dramatically and last year now seems like a long time ago. People of all nations are engaged in a fight against a global pandemic and we find ourselves facing uncertainty – not knowing what tomorrow will bring. As unsettling as that may feel, our business is and has always been about uncertainty; it has always been about tomorrow.

In 2019, as we have done for 142 years, we continued to build upon our solid history and position of strength, defined by growth, sound financial principles, and adding to our policyholder security fund. Our insurance premium revenue and policyholder security fund reached record levels in 2019. Premium revenue grew more than 4.4 percent to $251.9M. Surplus increased to an all-time high of more than $232.6 million. We had the privilege of serving members who chose to purchase or renew 164,985 policies, and we paid more than $167.6 million for losses and loss expenses to members and on their behalf. All of this means we are extremely well positioned for whatever tomorrow may bring.

This past year also marked a significant milestone in the company’s history. For the first time, Indiana Farmers Insurance expanded its business into another state as we welcomed our first Illinois members in January. As a result of the hard work of our associates and a group of new agent partners, we surpassed all our goals for Illinois. We also expanded workers comp coverage to Kentucky for Indiana and Illinois domiciled businesses and began eyeing opportunities in other states.

Our business is about much more than the balance sheet. It is about a community of homeowners, farmers, and business owners banded together to share risks. It is about our family of associates and agents that serve the members of that community. It is about the spirit of neighbor helping neighbor and it is with that spirit we forge ahead.

So today, as we stand on the threshold of tomorrow, we do so as we have always done. We do so prepared and we do so together.

Kim Smith signature

President | CEO

2019 Annual Report Policyholder Security Fund chart

Officers

Kim O. Smith

President and Chief Executive Officer

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

Buren E. Jones
General Counsel, Secretary

J. Barton Anderson III
Vice President, Chief Vision Officer

David A. Bordenkecher
Vice President - Claims

W. Ryan Campbell
Vice President, Chief Information Officer

Kevin M. Kelly
Vice President - Sales & Strategic Initiatives

Rick A. Marden
Vice President - Underwriting

Chad M. Beehler
Vice President - Risk and R&D

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

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