Farm Bureau Mutual Insurance Company to Move Forward with Plans to Form Mutual Holding Company

Farm Bureau Mutual to Reorganize as a Stock Property and Casualty Insurance Company

WEST DES MOINES, Iowa--(BUSINESS WIRE)-- Along with Farm Bureau Mutual Insurance Company policyholders, the Iowa Insurance Commissioner has now approved plans under which the company will be reorganized into a mutual holding company structure.

The plan of reorganization, including the articles of incorporation and bylaws of the companies created as a result of the reorganization, were approved by Farm Bureau Mutual policyholders on October 30, and with the insurance department’s approval this week, the plan will take effect on

January 1, 2010.

The terms of existing policies will not be impacted by the reorganization, and related membership interests and rights under policyholders’ contract of insurance will remain unchanged.

Farm Bureau Mutual will form a mutual insurance holding company to be named Farm Bureau Mutual Holding Company (MHC), and Farm Bureau Mutual will be reorganized as a stock property and casualty insurance company named Farm Bureau Property & Casualty Insurance Company. Farm Bureau Mutual will also organize an intermediate holding company named Farm Bureau Multi-State Services, Inc. All Farm Bureau Property & Casualty Insurance Company shares will be owned by Farm Bureau Multi-State Services, Inc. All Farm Bureau Multi-State Services, Inc. shares will be owned by MHC.

“We are pleased to be able to move this plan forward,” said Bruce Trost, Executive Vice President of Operations. “The new organizational structure provides greater flexibility for our property-casualty operations, and it will allow us to be even more competitive in the marketplace. That’s a good thing for consumers in the markets we serve.”

About Farm Bureau Financial Services

Through an exclusive, multi-state agent force, the companies affiliated with the Farm Bureau Financial Services brand underwrite, market and distribute a broad range of financial services products, including property-casualty insurance products and services, life insurance, investments and annuities to individuals and small businesses within a marketing territory that includes 15 states. Farm Bureau Mutual Insurance Company was established in 1939 and has been rated A (Excellent) by A.M. Best for more than 65 years.

Farm Bureau Financial Services
Nancy Doll, 515-226-6215
ndoll@fbfs.com

Source: Farm Bureau Financial Services