This company was founded in 1948 and is based in Schaumburg, Illinois with an additional office in Columbus, Ohio.
American Agricultural Insurance Company, Inc. provides reinsurance services to all the Farm Bureau insurance companies. It reinsures personal lines, business lines, property, casualty, inland marine, and crop; and multiline short-tail casualty. The company also provides broker assumed treaty reinsurance services. It serves its customers in the United States and internationally.
American Agricultural Insurance Company (AAIC)
1501 E Woodfield Rd
Schaumburg, IL 60173
One Easton Oval
Columbus, OH 43219
American Agricultural Insurance Company (AAIC)
The purpose of this book is to introduce the reader to reinsurance and to
American Agricultural Insurance Company (AAIC). It explains the principles of
reinsurance and how it functions. Specific reference is made to reinsurance
contracts written by AAIC, but this book is not intended to alter the meaning of
any AAIC reinsurance agreements.
AAIC commenced business May 18, 1948, with capital and surplus of
approximately one million dollars sponsored by the Farm Bureau insurance
companies and the American Farm Bureau Federation. For fifty-one years, AAIC
existed primarily to reinsure Farm Bureau insurance companies. In 1999, AAIC
purchased Nationwide Mutual Insurance Companyʼs Office of Reinsurance in
Columbus, Ohio, and thereby acquired a substantial broker assumed book of
domestic and international reinsurance.
The AAIC Board of Directors is drawn from the Farm Bureau property-casualty
insurance companies. An Advisory Committee made up of Farm Bureau
property-casualty insurance company CEOs acts as an advisor to the AAIC
Board of Directors.
AAIC Mission Statement:
We exist to assist the Farm Bureau insurance companies achieve financial
stability and growth through a long-term partnership based on mutual integrity
AAIC Operating Principles:
Through our unique relationship with Farm Bureau insurance companies, we:
Retain maximum feasible risk within the Farm Bureau family.
Maintain internal expenses substantially below industry norms.
Offer Farm Bureau insurance companies opportunities to assume
reinsurance exposures through pool participation and direct placements.
Facilitate the gathering and distribution of information pertaining to Farm
Bureau insurance companies. Provide financial modeling, underwriting/claim reviews, seminars and workshops.
Facilitate the cooperative efforts of Farm Bureau insurance companies by
the use of advisory committees and coordinating: conferences, financial
assistance, research and development, volume purchase discounts,
company peer reviews, catastrophe claim assistance, technical
assistance, and personnel openings.
Through a professional reinsurance staff that is customer focused, we Service individual reinsurance needs in the best interest of the Farm Bureau insurance companies.
Provide innovative and flexible products and services that are uniformly available.
Use sound actuarial principles to price equitably and consistently based upon individual company experience and exposure. Set price for contracts to be self-supporting over time.
Provide prompt and long-term collectability of claims. Manage risk so as to mitigate adverse short-term operating results. Maintain strong business relationships with key worldwide reinsurance markets and access their expertise.
Continue long-term capital growth to meet ever-increasing capacity needs. Maintain a strong balance sheet through adequate reserves and high quality diversified investments.
Examples of specific AAIC services to Farm Bureau insurance companies are:
- Managing reinsurance pools that allow the companies to combine and share premiums and losses for given classes of business, such as property catastrophe, thereby trading the volatility of a single stateʼs or regionʼs experience for the more stable results of a national or international spread.
- Preparing the Solvency Analysis and Financial Evaluation (SAFE) tests for the AAIC Advisory Committee that give each Farm Bureau company an early warning of adverse financial trends.
- Coordinating and leading Company Peer Reviews (CPRs) when requested. A team of Farm Bureau insurance professionals reviews the operations of the host company for the purpose of exchanging ideas and suggesting improvements.
- Publishing an annual Operating and Financial Indicators booklet of operating results and other Farm Bureau insurance company statistical data.
- Publishing several newsletters and special interest legal research.
- Maintaining a website (www.aaic.com) with Farm Bureau insurance employee access to contracts, claims billings, property reinsurance submissions, presentations, AAIC and Farm Bureau insurance financials, Farm Bureau directories, etc.
- Coordinating catastrophe claims assistance when a company suffers catastrophic loss.
- Providing companies the opportunity to participate in group purchases of goods and services at discounted prices.
- Performing Claims and Underwriting Reviews.
- Facilitating conferences and other educational functions such as reinsurance
Product and Services of American Agricultural Insurance Company
- personal lines
- business lines
- multiline short-tail casualty.
- inland marine