If you have additional questions about the reorganization, you may find the answer to your question in a list of frequently asked questions we have compiled.
Why is South Carolina Farm Bureau Mutual Insurance Company considering merging with Farm Bureau Mutual Insurance Companies in Arkansas, Colorado and Louisiana?
Combining into one larger company allows for greater operating efficiency and enhances the company’s ability to offer competitive pricing and improved products and services. Additionally, by joining together with other Farm Bureau Insurance companies, this provides an opportunity to become even stronger than the company is today. The new structure provides access to increased capital and surplus which benefits South Carolina policyholders. All of the companies also share a common philosophy and commitment to the importance of the Farm Bureau relationship and the importance of offering outstanding customer service to member-policyholders. That commitment to our policyholders will not change.
What happens in the reorganization of South Carolina Farm Bureau Mutual Insurance Company?
A mutual holding company ("MHC") will be formed, and South Carolina Farm Bureau Mutual Insurance Company will merge into the MHC along with Farm Bureau Mutual Insurance companies in Arkansas, Colorado and Louisiana. Simultaneously, a stock company will be formed called Farm Bureau Property Insurance Company, which will be wholly owned by the MHC. Subsidiaries will be established in each state. South Carolina Farm Bureau Mutual Insurance Company will be reorganized as South Carolina Farm Bureau Insurance Company, a subsidiary of Farm Bureau Property Insurance Company. Policyholder contract rights will be transferred to South Carolina Farm Bureau Insurance Company and membership rights will be vested in the MHC.
Will anyone benefit financially from the reorganization?
No company employee or affiliated organization will see any financial gain resulting from the reorganization of the company.
Will there be an independent review of the reorganization to determine if it is in the best interest of policyholders?
An outside company, Macquarie Capital (USA) Inc, has provided a fairness opinion which will be submitted to the Department of Insurance for review. The fairness opinion was issued after a detailed review of the reorganization plan along with public and non-public financial and operating data. Macquarie’s opinion found that the transaction is fair, from a financial point of view, to the member-policyholders of South Carolina Farm Bureau Mutual Insurance Company. The reorganization cannot move forward without approval from the Department of Insurance. State law requires that the Department may not approve the transaction unless it is fair and equitable. As part of the Department’s review process, a public hearing will be held so that members of the public who wish to speak may be heard.
What’s my role in the reorganization as a policyholder?
Policyholders will be provided an opportunity to vote on the proposed reorganization. In the coming months, policyholders will receive detailed information about the reorganization by mail. Policyholders may vote by mail.
When will the reorganization be completed?
There are many steps that must be completed before the reorganization is finalized. Policyholders in each affected state must vote. Regulatory approval is also needed in each state.
What is the financial condition of the company?
The financial condition of South Carolina Farm Bureau Mutual Insurance Company remains strong. The company has a “Good” rating from A.M. Best. The decision to merge is simply a strategic decision to better position the company for long-term growth.
How will the merger affect me as policyholder?
South Carolina Farm Bureau Insurance agents who live and work across the state will continue to sell and service South Carolina policyholders. You will not be required to complete any new paperwork to continue your coverage. You will use the same South Carolina phone numbers, mailing addresses, and email addresses that are in place today. The name of the company will simply change from South Carolina Farm Bureau Mutual Insurance Company to South Carolina Farm Bureau Insurance Company. Overall, the change will be very transparent and seamless for policyholders.
Will my policy change?
The reorganization will not, in and of itself, in any way change the terms of your present policy or premiums. Your contract rights will remain with the reorganized South Carolina Farm Bureau Insurance Company.
Will employees lose their jobs?
There are no plans to eliminate jobs as a direct result of the decision to restructure the company. Just as was the case prior to the decision to reorganize, there is no guarantee that roles for individuals will not change over time.
Will the company relocate to another state?
South Carolina Farm Bureau Insurance will remain domiciled in South Carolina. The company’s State Office will remain in Cayce, just outside of Columbia.
How will this impact my local Farm Bureau office?
The reorganization will not have any impact on local Farm Bureau offices. Your membership with the local Farm Bureau office will continue unaffected by the insurance company changes.
Can I still pay my premiums at the local Farm Bureau office?
You will have the same convenient payment options available to you whether you choose to pay at the local Farm Bureau office, online through the company website (www.scfbins.com
), or by mail.
Where do I mail my premium payments?
You may continue to use the same mailing addresses that you use today.
Who can I talk to if I have additional questions?
If you have additional questions about the proposed reorganization, please email us at Growing@scfbins.com