Sometime in December 1946 when the annual meeting of the American Farm Bureau Federation took place, the delegates particularly the voting ones authorized the origination of a reinsurance company. In 1948, the American Agricultural Insurance Company started its operation and offered services and did business transactions with the people of Chicago. The AAIC was originally based in downtown Chicago and then moved to the northwestern suburb of Park Ridge Chicago in 1972. And finally, AAIC have settled to its final location in May 2004 in northwest suburban Schaumburg. This is also the current location of this company.
Initially, the American Agriculture Insurance Company was originally chartered ad as a stock company. Soon after, it was converted into a mutual fund sometime in 1954 and then once again reconverted as a stock company by the year 1968. The stock is managed and supervised by AFBF and Chicago’s Farm Bureau property or casualty insurance companies. In 2008, Janet Katz was declared as the 9th general manager.
American Agricultural Insurance Company Practices
In 1997, AAIC commisioned an independent firm to conduct a research and study. The firm conducted several interviews with the staff of American Agriculture Insurance Company, their clients and presidents of the Farm Bureau. Others who were also included were reinsurance competitors and some insurers that have the same operations as the Farm Bureau companies. The aim and purpose of doing such interviews was to determine the capability of AAIC as an insurer. Aside from that, this study also aimed to point out where AAIC could give better services and pinpoint new opportunities that can help in the growth of every customer.
AAIC reviewed its mission statement and its principles for its operations. Until those times, the company had mainly focused on providing reinsurance with just a small flexibility in terms of structure. While reinsurance has retained itself as the primary service offered by American Agriculture Insurance Company, the company’s statement has served as a signal to provide more willingness and the desire to enlarge or expand its company operation. Aside from that, AAIC was also tapped to provide more options with greater level of flexibility.
AAIC have had experience its first opportunity to expand some time in 1999. This is when the Nationwide Groups wanted to sell the assumed reinsurance business of their company. After this was approved by the Board, it was immediately initiated and finalized. In the spring of 1999, the Ohio office of AAIC started to write reinsurance business from companies aside from Farm Bureaus. This created good profits for the American Agricultural Insurance Company, good exposure to other businesses in the market and provided staff that befitted the Farm Bureau culture.