News and Events

Federated Reports Excellent Financial Standing

April 21, 2009

Annual Meeting Reveals Strong Results in 2008

The Federated Insurance Companies held its 105th Annual Meeting of Policyholders at their Home Office in Owatonna, Minnesota, on Tuesday, April 21, 2009. Al Annexstad, Chairman, presided at the meeting. A large contingent of policyholders and guests were in attendance.

During the President’s Report, presented by Jeff Fetters, President – CEO, it was stated that Federated is in exceptional financial condition. Despite facing many of the larger challenges plaguing the economy and the insurance industry, Federated emerged from 2008 clearly as one of the financially strongest insurers in America. In fact, Federated was one of only a few in its peer group to achieve a gain in surplus for the protection of policyholders while maintaining a conservative claims reserve posture. These two factors are the most important indicators of an insurer’s ability to meet its future obligations.

Fetters reflected upon Federated’s impressive track record during the past decade, giving much credit to the leadership and vision of Federated’s Chairman Al Annexstad and to the discipline and knowledge of Federated employees at all levels. During this time Federated’s assets have grown by two-thirds from $3 billion to $5 billion while the company’s surplus rose a billion dollars during the past ten years to over $1.8 billion. Today, more than 400 national, regional, and state associations and affinity groups exclusively recommend Federated to their business owner members, in large part because of Federated’s strong financial position that underscores its specialized insurance and risk management services.

Federated’s financial standing was evidenced during the past year when Federated received once again an A+ (Superior) rating from the A.M. Best Company, the insurance industry’s leading analyst. Best attributed Federated’s continued success to the strength of its management expertise, business plan, trade association endorsements, risk management expertise, superior capital position, high quality investments, unique national distribution system, and most importantly, the expanding culture of performance on the part of Federated employees across America. The latter was evidenced by Federated receiving the highest marks possible following a comprehensive audit of its operations and finances conducted recently by the Minnesota Department of Commerce.

Annexstad introduced Senior Marketing Representative Mike Rothones of Loveland, Colorado, who recently received the Chairman’s Career Award, Federated’s most prestigious recognition that a career marketing representative can receive. This award is given to an individual who embodies, in Annexstad’s words, the knowledge, energy, and passion that are required to sustain a marketing career at the highest level of achievement and trust with clients and colleagues.

Federated made special note that the company’s continuing success is due largely to the quality and dedication of Federated’s employees, past and present, and to its continuing bond to the Owatonna community. The company has approximately 2,700 employees countrywide, of` which 1,500 work in Owatonna, the latter representing about 7% of the Steele County workforce. Federated contributed over $80 million in local, state and federal taxes in 2008, while the company and its employees contributed nearly $2 million to charitable causes.

Four directors were re-elected to Federated’s Board of Directors: James H. Lipscomb III, Greenville, Mississippi; Jairus E. Meilahn, Owatonna, Minnesota; Roger W. Peugeot, Prairie Village, Kansas; and Stuart J. Seiler, Duluth, Minnesota for terms of three years, expiring at the Annual Meeting of the Policyholders to be held in April 2012.

Federated is a major provider of property and casualty, health, and life insurance to American businesses. Federated maintains principle underwriting offices in Owatonna, Atlanta, and Phoenix.