Fetters: ‘We love Owatonna’

If there’s one message that rang out at last week’s annual policyholders meeting at Federated Insurance in Owatonna, it’s the multiple ways of what makes Federated so successful.

Chairman Jeff Fetters took advantage of the time given for his annual report to highlight many reasons why Federated is such a dominating force not only in the insurance industry, but also the local community.

“We love Owatonna,” Fetters said several times during his speech with the same message prominently displayed on a large projection screen behind him. “We absolutely love Owatonna. It’s a perfect place to have our corporate offices.”

In reviewing what makes Federated so successful, Fetters pointed out how the local company has invested $22 million into the new Owatonna High School as well as another $6 million in downtown development.

“We want the best school system,” Fetters said. “We want the best for our employees and children,” he added.

Federated also gives back to the community through the Federated Challenge, a fundraiser held every summer for Big Brothers Big Sisters (BBBS). Since 2005, the Federated Challenge has raised $48 million for youth mentoring with $3.8 million coming during last year’s record year.

“We are very proud of this endeavor,” Fetters said.

Besides the fundraising effort, Federated employees are the top source of mentors for BBBS of Southern Minnesota. In 2022, Federated was named to the National Corporate Mentoring Honor Roll.

Workers at Federated raised $301,864 plus a $103,300 corporate gift for United Way.

Employees who participated in Federated’s 2022 employee gift matching program donated nearly $100,000 to 200 charitable causes across the nation.

“We believe wholeheartedly in the importance of serving the needs of others for the betterment of our community,” Fetters said. “Federated is growing and prospering. We’re committed to sharing our success with Owatonna and all the communities where our employees live and work through meaningful charitable donations and corporate citizenship.”

Federated is guided by four major cornerstones, including equity, integrity, teamwork and respect, according to Fetters. Among the company’s core principles are people, culture, financial strength and value marketing.

He shared how proud he is of Federated’s board of directors and executive team. “We surround ourselves with outstanding people,” said Fetters. “I’m exceptionally proud of their leadership.”

A commitment to its mission and unmatched service helped Federate achieve one of the best years in its 119-year history. The company posted record-setting total assets of $11.2 billion, invested assets of $9.9 billion, policy surplus of $4.6 billion, total property and casualty and life premium of $2.52 billion, property and casualty net premium of $2.15 billion and total property and casualty accounts of 44,059.

Fetters shared how the company has grown over the past 10 years. Federated has more than doubled its assets from $5.5 billion in 2012 to $11.2 billion last year. He noted how it took 100 years to reach $5.5 billion and now they’ve added another $5.5 billion in just 10 years.

Another remarkable achievement is the growth of policyholder surplus going from $2.4 billion in 2012 to $4.6 billion last year.

“It’s the strongest financial position of our 119-year history,” said Fetters, adding the company has “come a long, long way the last 10 years.”

Currently, Federated employs 2,786 people. Fetters credited the current employees for creating the successful company it has become.

“I am exceptionally proud of our highly talented and dedicated employees,” Fetters said. “As organizations faced challenges ranging from tornados to crash-related litigation to retaining essential employees, Federated employees were there to provide counsel, support and the invaluable risk management tools and services our clients needed to remain successful.”

Re-elected to three-year terms on the Board of Directors were Fetters, Camelia Clarke, James Giesler and Sarah Person. Jason Courter, COO of Honda Auto Center in Bellevue, Wash., was elected to the board for his first one-year term.

Retiring Director David Adcox and his wife, Connie, were recognized during the meeting and presented with a resolution honoring their faithful board service. “Since 2013, David has been a devoted voice for the Fuel Marketer and Distributor industry on the Federated Insurance Board of Directors,” Fetters said. “David and Connie will always be treasured friends and greatly missed,” he added.

Federated’s 2022 Chairman’s Career Award went to Kevin Kramer of Minneapolis. He is a senior marketing representative. The award is the highest recognition given to marketers. It is given to individuals who have outstanding marketing careers of superior policyholder service for 25 years or more, sustained high-performance levels and gained the trust of their clients and colleagues.

The company was founded in 1904 by the Minnesota Implement Dealers Association as a benefit to its members. “Our purpose in 1904 was to provide risk management support and insurance protection to safety-minded businesses,” Fetters said. “Our mission remains the same today, and as a mutual company, we devote our full attention to the best interests of our clients and employees.”

Fetters thanked everyone for helping Federated overcome obstacles.

“Our best years are in front of us,” he said.