FRANKLIN, Tenn. - Farm Bureau Insurance of Tennessee, the trade name for Tennessee Farmers Insurance Companies, reported 2023 results and announced stock valuations to shareholders on Thursday, March 28, 2024, at the company’s Annual Meeting in Franklin, Tenn. During the meeting, the leadership team discussed the opportunities that were cultivated in 2023 despite financial and weather-related challenges.

Josh Webber, Property & Casualty Chief Operating Officer, reported a significant milestone in surpassing the 2 million mark for automobiles, homes, and small businesses covered by Farm Bureau Insurance. The company achieved a 42,000-unit growth in 2023, exceeding its 20,000-unit goal. Agents’ quote activity, along with rate changes throughout the industry, resulted in the third-highest unit growth in the past 18 years.

The company experienced its second-largest weather event in its 75-year history, resulting in over $210 million paid for 27,000 claims from the March 3rd straight-line windstorm. Agents and claims representatives were able to settle 90 percent of claims within 30 days of a customer filing.

Inflationary factors and weather-related pressures had a negative impact on the underwriting outcomes of the P&C company. The year 2023 was a challenging year for profitability due to frequent and severe weather-related losses that occurred throughout the year. As compared to the previous year, the company incurred an additional $264.6 million for weather-related losses, including both auto and property losses, resulting in an underwriting loss for the year. However, the P&C company remains a leader in the industry in operational efficiency, with an expense ratio of 24.3 percent. The company is taking necessary measures to regain profitability by implementing prudent underwriting practices and adequate rating.

Tennessee Farmers Life Insurance Company (TFLIC) reported a solid performance despite facing significant headwinds in the economic landscape. The company's Chief Operating Officer, David Bell, highlighted the impact of interest rate fluctuations on their operations. Despite these challenges, the company maintained a competitive balance in its interest-sensitive products, ensuring a quality investment portfolio while navigating the market's uncertainties.

Regarding the company's performance metrics, the productivity of agents remained high, and the company issued a total of $4.85 billion in face amount in 2023, with a total of $48 billion in force. TFLIC continues to be the number one life insurance company in the state and insures more lives than any other company in Tennessee. Although the total collected premium decreased by 6.5 percent, coming in at $246.7 million, the company's expense ratio met expectations at 25.5 percent. Persistency, or retention, remains a source of pride with 94.1 percent 13-24 month persistency. The company's net income came in at $38.9 million, and assets grew by 1.8 percent, now standing at $2.64 billion.

Moreover, both companies' commitment to financial strength and security was reflected in their A+ Superior rating by AM Best and recognition as Ward’s 50® Top P&C and Life Insurance Company.

Looking ahead to 2024, Chief Executive Officer Jeff Pannell emphasized that the company's two main goals are profitability and growth. Market projections suggest a potential decrease in interest rates this year could positively impact the P&C and Life companies. Currently, the P&C companies have a surplus-to-premium ratio of $1.81, which stands among the strongest in the industry and is admired by all Farm Bureau companies. TFIC's operational efficiency and surplus have enabled the company to weather various financial and weather-related challenges and position itself to return to profitability.

Stock prices announced
 
Based on the year’s outcomes, the stock price for Tennessee Farmers Life Insurance Company was announced at $59.59 per share. The company’s directors voted and offered to purchase up to 200,000 shares. Stockholder equity increased by 2.8 percent over the previous year.
 
Tennessee Farmers Assurance Company’s stock price was announced at $25.71 per share, representing a 3.2 percent increase in stockholder equity over the previous year. The directors voted and offered to purchase up to 200,000 shares.

 

About Farm Bureau Insurance of Tennessee 


Farm Bureau Insurance of Tennessee is the trade name of the Tennessee Farmers Insurance Companies, a single-state operation headquartered in Columbia, Tenn. Farm Bureau Insurance covers more homes and autos than any other insurance company in Tennessee and is the state's largest writer of individual life insurance. Its mutual company has been serving Tennesseans since 1948, and its life company has been covering lives since 1973. The companies are affiliated with the Tennessee Farm Bureau Federation, the nation's largest single-state Farm Bureau organization with more than 680,000 member families. Visit fbitn.com.