 | The History of American Ag | | | In December 1946, during American Farm Bureau Federation’s annual meeting, the voting delegates authorized the formation of a reinsurance company. Seventeen months later, in May 1948, American Agricultural Insurance Company opened its doors for business. Originally located in downtown Chicago, the company moved to the Chicago northwest suburb of Park Ridge in September 1972. In May 2004 the company moved to its current location in northwest suburban Schaumburg.
American Ag was initially chartered as a stock company, converted to a mutual in 1954 and then reconverted into its current form as a stock company in 1968. The stock is held by AFBF and the state Farm Bureau property/casualty insurance companies. Janet S. Katz was named the company’s ninth general manager in 2008.
In the summer of 1997, American Ag commissioned an independent consulting firm to conduct a study entitled “Vision 2000”. The firm conducted interviews with the staff of all American Ag’s Farm Bureau clients, some Farm Bureau presidents, a few reinsurance competitors, and several primary insurers with operations similar to Farm Bureau companies. The objective was to evaluate how American Ag was doing as a reinsurer and provider of other services, but more importantly to pinpoint areas where American Ag could provide better services and identify new opportunities for growth. The results of the study have subsequently shaped the direction of the company.
The company began by reexamining its mission statement and operating principles. Until that time, the company’s focus had been mainly reinsurance programs with little flexibility in structure. The resultant new mission statement says, “We exist to assist the Farm Bureau insurance companies achieve financial stability and growth through a long-term partnership based on mutual integrity and trust”. While reinsurance remains the company’s primary service, this statement signaled a willingness and desire to expand operations and offer more program options with greater flexibility.
The first opportunity for expansion came in January 1999, when the company learned of Nationwide Group’s desire to sell their assumed reinsurance business. With the Board’s approval, this opportunity was pursued, and in the spring of 1999 the Columbus, Ohio office of American Ag began writing reinsurance business from companies other than Farm Bureaus. It has proven a valuable addition with good profits, additional exposure to other markets, and a staff that fit perfectly into the Farm Bureau culture. |