Mutual Re has announced that the Mutual Assurance Society of Virginia (MASOV) will join its ownership group, effective Jan. 1.
The Chicago-based reinsurance underwriting association said the addition follows its plan to adjust its ownership structure and sustain its collaboration with mutual insurers.
Mutual Re, which writes business for small-to-mid-sized mutual insurance companies through intermediaries, was founded in 1921 to provide reinsurance capacity and distribute risk among insurers across the United States. The association maintains more than $6 billion in capital available to clients and operates with joint liability among its assuming companies.
Beginning Jan. 1, ownership of Mutual Re will include MASOV, Farm Bureau Mutual Insurance Company of Michigan, Kentucky Farm Bureau Mutual Insurance Company, and Motorists Mutual Insurance Company, part of Encova Mutual Insurance Group.
Mutual Re reported that the group holds a combined policyholder surplus of more than $5 billion among its four assuming companies.
“We are excited to announce the addition of Mutual Assurance Society of Virginia to our group of existing owners,” said John Meyers, president and CEO of Mutual Re. “They have a very strong balance sheet and long history of serving their policyholders. Mutual Assurance Society of Virginia is an A rated insurer who brings a strong commitment to the mutual industry.”
“This partnership represents an important and exciting step for us,” said Theresa Lewis, secretary-treasurer of MASOV. “By joining Mutual Re, we’re able to deploy our capital efficiently, diversify our risk, and participate in a respected reinsurance platform that supports the stability and success of mutual insurers nationwide.”
MASOV, founded in 1794, operates as a mutual assessment property and casualty insurer for Virginia homeowners. It issues perpetual homeowners policies that remain in force as long as membership conditions are met, subject to cancellation provisions. The board sets premiums and may levy annual assessments up to 200 % of the policy premium. MASOV writes fire and allied lines, homeowners, inland marine, and personal umbrella liability insurance, and inspects each property before binding coverage.
The organization also contributes to community programs through the Mutual Assurance Society of Virginia Fund, which directs about 70 % of its annual giving to United Way organizations across the state.
Mutual Re, formerly known as the Mutual Reinsurance Bureau, adopted its current name in 2018.
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