Farmers Mutual Insurance Company, Manchester MN

Picture of Building












Farmers Mutual History

Farmers Mutual Insurance Company was formed on the 7th of December, 1876, at a meeting held in the Middle (Central) Church of the Freeborn Congregation.

Our First 100 Years

The first annual meeting held in Albert Lea the 2nd day of January 1877. Ole Peterson Slette, the company president, acted as chairman and Iver A. Rodsater as secretary. The following report from the president and secretary was read: To the honored members of Farmers Mutual Insurance Company, Freeborn County, Minnesota. It can seem superflouos for us now to present a so-called annual report when the company has been incorporated for less than a month, but so that every member of the company, for today , as well as the future, will know, and have the knowledge of this company's history from the very first beginning on, we thought it would be fitting at the first annual meeting to record and preserve the minutes."

These first minutes of the Farmers Mutual Insurance Company were recorded over 100 years ago on our nations centennial year. The minutes, however, were written in Norwegian and continued to be until 1900. Gunlek O. Wasmoen of Albert Lea was kind enough to translate all the Norwegian minutes to english.

The company started out insuring property in Manchester, Bancroft, Riceland, Hayward, Albert Lea, Bath, Hartland, Carlston and Freeborn Townships. Ten years later it was doing business in 17 townships.

Apperently business had its up and downs even in the 1800's. In 1881, there was some complaint about the cost of the annual report. "Intelligent people have really no reason to complain, but unreasonable people will, under every circumstance complain over expenses with the report." In 1882, the following is quoted:"This company, a mutual, responsible organization keep together in a brotherly understanding, man to man way, has been built on state laws, and the principle of simply being a helping organization. As such, it should be looked upon and aided and promoted. People that don't feel the urge to help the members who suffer loss or damage, will not feel at home in our company." In 1885, they seemed to have a problem regarding the collection of assessments as quoted: "There ought to be a certain rule for sending money to the treasurer that he or the secretary not be responsible for any loss by mail. Postage stamps should be sent as little as possible as we cannot use to many stamps. If they are kept to long, they become sticky and useless.

In 1887 the Board of Directors estimated that insurance coverage with this company was costing policyholders about one-third of what it would cost insuring with other companies. In 1888, they bought a safe for the records and cash and started publishing the annual report in the county papers.

Settling losses became a problem to, as members of the board felt deep sympathy for anyone who suffered damages as shown in this quotation from 1889: "It hurts us when we have to deny claims against the company, when many of those damaged are in needy circumstance. But, if this company is to exist, it is our duty as management to maintain law and order in the company, to the best of our ability." In 1892, the board found out that they had to stand behind the action of one of the agents they appointed and they resolved that, "We will propose to the meeting (annual) that they elect good directors and agents as the company seems too responsible for their actions on behalf of the company."

State conventions are taken for granted today, but this company paid $10.50 for expenses to send the secretary to attend the State Insurance Meeting in Mankato back in 1896. In 1918, the company sent H.C. Nelson and G.O. Myran as delegates to the State Convention to decide on helping the township mutuals in the northern part of the state. Forest fires had totally destroyed almost all the property insured by several mutual companies and they were unable to pay their losses. Most of the mutual companies in the state came to their aid. At the annual meeting on January 16, 1919, it was voted unanimously to assess each policyholder 75 cents per $1,000 insurance, the proceeds of which to go to the companies doing business in the fire-swept districts in northern Minnesota who were unable to pay their losses.

This company, today, carries a very adequate reinsurance program. Back in 1923, a committee was sent to a State Association Meeting in St. Paul to draft a plan for reinsurance. Apparently, the company did not carry reinsurance until after the year 1934, however.

Election of directors was held each year. A committee nominated one man from each township and the nine men with the most votes were elected. This system was used until 1932 when it was decided directors should hold office for a term of three years.

Also, in 1932, the board decided to assess annually. Up until then, they could only assess when their funds were down to $500. Therefore, the company assets have been acquired since 1932. The corporate existence of the company was originally granted for a 30 year period. When it expired in 1906, it was renewed for another 30 years. In 1936, the corporate existance was made perpetual.

The company office was in the home of the secretary from the time it was organized until 1972. This usually meant a time for a cup of coffee and a piece of cake for the poliyholders, agents and directors who came to the office. As the company grew, greater space was required for office furnishings and for adequate facilities for customers. The office had been in the home of Gunder O. Myran's farm from 1899 to 1951. When Gunder Myran died in 1935, his son, Richard, had to step in and do the work, and was elected secretary to succeed him. Richard Myran lived on the same farm until 1951 when he built a house on the northwest corner of the farm. Therefore, the office was moved just down the road. When Richard Myran passed away in 1962, his son-in-law, Duane Troe, had been hired to be his assistant. Duane was to start working for the company on April 1, 1962, and Richard Myran died on March 27, 1962. The office remained in his home, as Duane and his wife purchased it from Mrs. Myran. In 1967, the Troes finished off the basement of their home to make more room for office facilities, but as the company was getting larger and more help was required, the board of directors decided to build a new office building. This building, built by Wayne Construction of Geneva, Minnesota, is located on the Southwest corner of the original Gunder O. Myran farm, on Highway 13 in Manchester. The company moved in on April 21, 1972. An open house was held for the public on July 15, 1972, with over 600 people attending.

Contributing to the company's rapid growth these last years was the beginning of the Package Policy started in 1962 along with broader coverages including blanket personal property. The Company expanded its territory of business to Faribault, Waseca, Steele, Dodge and Mower Counties in 1963. Then in 1967, it was decided that the Farmers Mutual Fire Insurance Company of Bath would merge with our company.

The "Bath Company" as it was commonly called, had been organized February 1, 1878, much the same as this one. H. P. Jensen was he first president and Nels P. Peterson the first secretary. It brought into this company $12,233,432 insurance in force and was legally merged with this company July 1, 1967. The members of the Board of Directors of the Farmers Mutual Fire Insurance Company of Bath at the time of the merger were: Herman D. Jensen, president, Soren Sorenson, Vice-President, Christ J. Wayne, secretary, Robert Hanson, treasurer, Ernest Anderson, A.W. Hanson, Enoch Peterson, William Wacholz, and Ray Thompson.

Over the last few years, the Farmers Mutual Insurance Company has been involved in serving the pubil interests of its policyholders. There have been fire prevention meetings with FFA chapters, sponsorships of Know Your Government Seminars for 4-H members, sponsorships of dairy princess candidates, participation in the 4-H livestock auction. An inspection program of all insured property was started in 1966 and continues to date.

In 2007 the company again expanded its territory of business to include Blue Earth, Le Sueuer, Rice, Goodhue, Olmsted, Fillmore, Houston, Winona, Wabasha, Dakota and Scott Counties and to Cities of the Second Class within its writing territory.

These are what we consider to be the highlights of the history of Farmers Mutual.