FINANCIAL STATURE, GROWTH, STABILITY
In Innovated Holdings 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 has demonstrated its strength as a stronghold for the CNI book, delivering consistent profits and stable retentions. To capitalize on this success, CNI launched a package policy offering home, auto, and umbrella. Oklahoma served as the flagship market for CNI's new quoting system launch in Q4 2021, enabling greater efficiency and a more streamlined experience for agents and customers alike.
In our ongoing efforts to expand the reach of our new quoting system and package policy, we identified Arkansas as the next state of focus for Q1 2022. With over 100 agents in Arkansas and a strong book of business, including the largest agency at over $250,000, CNI is well-positioned to succeed in this market. Furthermore, Arkansas has proven to be more profitable than our other core states, with over 3,000 active policies currently in place.
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 reviewed 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.
Innovated Holdings is excited to expand our presence in the state of Indiana through our partnership with Oakwood Mutual. As we continue to grow our agency force together, we will leverage our combined resources and expertise to deliver innovative insurance solutions and exceptional customer service to policyholders across the state. Our shared commitment to excellence and dedication to building long-term relationships with our customers makes us a natural fit. We look forward to a successful partnership in Indiana and beyond.
Adopting a Mutual Mindset
CNI will be transitioning towards offering preferred personal auto, umbrella, homeowners, and farm insurance products. The auto products will provide a range of liability limit profile options, including higher limits to meet the needs of property owners. Using CFM's successful marketing strategy, CNI will focus on core states through in-person visits, up-to-date marketing materials, and working with independent agents to achieve success. CFM's community-focused brand messaging has been the cornerstone of its marketing efforts centered on giving back to each policyholder's local area. This messaging has played a significant role in shaping CFM's brand for over 150 years and will continue to be a vital part of CNI's marketing strategy going forward.