As a policyholder of Farmers Union Mutual Insurance Company (FUMIC), you are a voting member, playing an important role in electing our leaders and determining our future. Over the past three years, your board of directors has explored avenues to shore up FUMICs future by looking for growth opportunities that align with our commitment to excellent customer service, our financial strength, our local community presence all while retaining the construct of a member-owned mutual.
Being a mutual allows us to focus on long-term benefits to our members and our communities. Thats why, after much deliberation, your board of directors has unanimously voted to take the steps to reorganize FUMIC into a mutual insurance holding company system by adopting a Plan of Reorganization and Mutual Holding Company Formation (the Plan). Under the Plan, we will create a mutual insurance holding company to be called Agraria Group, Inc., which will be governed by its members – you. Agraria Group will own the stock of a newly formed intermediate stock holding company, called Farmers Union Holding Company, which will own all the stock of FUMIC. FUMIC will continue its existence as a stock insurer and will be renamed Agraria Insurance Company.
When the reorganization takes effect in April 2020, the members of FUMIC will automatically become members of Agraria Group, and all of the insurance policies issued by FUMIC will remain in force and unchanged. There will be no change to any members insurance policy because of the reorganization, and the membership interests in Agraria Group will be substantially the same as the membership interests currently held in FUMIC. That means we will retain the member-owned, one-member-one-vote philosophy.
In order for the Plan to become effective, the North Dakota Century Code Chapter 26.1-12.1 requires the approval of the North Dakota Insurance Commissioner. The Commissioner will hold a public hearing on June 25, 2019 pursuant to the notice provided here [linked] to determine whether to approve the plan. If the Commissioner approves the Plan, the Members must then vote on approving the Plan as well. Look for more information in the coming weeks on these steps.