IN INNOVATED HOLDING’S CORE STATES
During the short time since CFM’s acquisition of CNI on February 27, 2019, CNI has taken the following steps in the core states to improve the financial condition of the company:
To provide an additional revenue stream in Missouri, CFM has been able to launch a personal auto product to complement its preferred homeowners and farm products, utilizing CNI’s auto insurance infrastructure. CFM has well-respected name recognition in the state of Missouri and a strong group of common agents with CNI to support and promote both companies moving forward.
Oklahoma is a stronghold of the CNI book, producing consistent profits and stable retention. CNI’s book of business in Oklahoma is mostly standard business as opposed to the non-standard business of the other states. These factors have led us to release a package policy offering of home, auto, and umbrella. This release was approved by the Oklahoma DOI and is currently being promoted to our top 25 agencies in the state. By Q4 2021, our new quoting system will be ready to launch and will help us gain efficiencies with ease of business.
Continuing the release of our new quoting system and the package policy, Arkansas will be the next state of focus starting Q1 2022. CNI has over 100 Arkansas agents and a solid book of business, with the largest agency at $250,000. Arkansas has proven to be more profitable than the other core states and currently has over 3,000 active policies.
The Tennessee book of business has been cleansed with the same care as was taken in Missouri. Agencies with a high loss ratio and/or low volume were the focus and terminated. The remaining 35 agencies will be the focus of our marketing efforts beginning Q3 2021 with the roll-out of our new quoting system and the package policy.
Geographically, Illinois is easily managed from a Missouri home office while allowing our border agencies to nurture business across state lines. We are fortunate to have the support of Forreston Mutual that has serviced policyholders in Illinois since 1877. Forreston will offer guidance and provide an insight into the insurance climate of the state. The current DOI for the state has a productive and advanced vision that will greatly help move CNI forward in this state.
A Mutual Mindset
Looking ahead, CNI will shift to offering preferred personal auto, umbrella, homeowners, and farm insurance products. The auto products will provide several liability limit profile options, including higher limits that will be attractive to property owners.
The Company will use CFM’s proven marketing strategy to focus on the core states named above by in-person visits, up-to-date marketing materials, and the mutual mindset of working to make our independent agents successful. The star of CFM’s strong brand messaging – which singlehandedly affects all marketing efforts – is community. Built by Missouri’s many rural, interwoven communities, CFM has always made it their sole mission to religiously give back to each place its policyholders call home. This heartfelt mission molded an entirely new brand for CFM after its 150th year came to a close and morphed seamlessly into a similar marketing strategy for the revamped CNI brand.