Federated Insurance Company of Canada

From Wikipedia, the free encyclopedia

 This article does not cite any references or sources. (December 2007)
Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed.

The Federated Insurance Company in Canada is a property and casualty insurance provider located in Winnipeg, Manitoba, Canada. Federated has approximately 300 employees across Canada with approximately 150 in Winnipeg.


[edit] History

During the 1890's, the retail implement dealers in Minnesota formed an association, which proved to be very successful. In 1904, these dealers decided to try to reduce their insurance costs by organizing their own insurance company.

Initially, the Company was known as the Minnesota Implement Mutual Fire Insurance Company, and retained this name for many years. They would later become the Mutual Implement and Hardware Insurance Company, then Federated Mutual Implement and Hardware Insurance Company and, finally, as Federated Mutual Insurance Company.

On January 1, 1948, Federated Mutual entered the casualty insurance field, and was one of the first major insurance companies to write both fire and casualty insurance. In November 1949, accident and health coverage was added, with group accident and health insurance being written for various trade associations and employer groups. Federated Life Insurance Company was organized in January 1959.


[edit] Canadian History

  • In September 1920, Federated began operating in Canada.
  • By 1933 the sales force had increased from two to 17 representatives, and the annual premium income was approximately $1 million, primarily from hardware and implement business.
  • Early in 1944, Federated aggressively went after and obtained endorsements from farm equipment manufacturers and associations across the country. This paved the way for writing insurance for many farm equipment dealers during the next few years.
  • Expanded into the Casualty business in 1948. This brought a tremendous boost to the growth and development of the Canadian operation.
  • Federated entered the life insurance business in Canada effective January 1, 1964.
  • Growth continued as the company entered the group health insurance field. Group plans were sold until the provincial governments introduced socialized medicine. A supplemental health plan and dental plan was introduced in 1987.
  • On January 1, 1988 the Canadian division was converted to a wholly owned corporate subsidiary operation, Federated Holdings of Canada Ltd., which holds all the stock in the two operating subsidiaries: Federated Insurance Company of Canada and Federated Life Insurance Company of Canada.
  • On January 1, 1990 Federated Insurance Company of Canada and Federated Life Insurance Company of Canada became fully Canadian owned and operated subsidiaries of Fairfax Financial Holdings Ltd. of Toronto, Ontario, when Federated Insurance Holdings of Canada Ltd. was purchased from the Federated Mutual Insurance Companies.
  • Year 2000 saw Federated poised to undertake a series of major change initiatives in response to recognized external and internal drivers. Restructuring came about as result of a desire to improve proximity to and relationships with customers, and to generally, work under more efficient processes. Both, clients and Federated benefit from a team service approach to assessing and managing risk. Federated also sought to devote considerable resources to the enormous potential represented in various e-business opportunities.

In April 2003, Fairfax Financial Holdings formed Northbridge Financial Corporation to serve as the holding company for their Canadian insurance subsidiaries including, Federated Insurance, ICICI Lombard, Commonwealth Insurance, and Markel.

In May 2004, Federated Holdings of Canada Ltd. announced an agreement to sell Federated Life Insurance Company of Canada to Western Financial Group Inc.

In March 2005, the sale of Federated Life Insurance Company of Canada to Western Financial Group Inc. was completed.

Northbridge Financial Corporation is a financial services holding company which, through its operating subsidiaries, is engaged in property and casualty insurance in Canada and in selected US and international markets. Northbridge is a majority-owned subsidiary of Fairfax Financial Holdings Ltd.