Milford chronicle., 1955-02-04
Farm Bureau
Insurance Co. S Are
Going Nationwide


in more ways than one.
Via a closed-circuit telecast view
ed today in q eastern cities by
some $4,000 employees, agents,
families, and friends Of the COM
panies, top officials announced that
the three frms intend to-
l1) Change the company name,
effective September /, 1855, to Ma
tiOnWide Insurance, and
90 Begin planning Immediately
for a program Of national expan-
sion
The Farm Bureau Mutual Auto
mobile Insurance Company thus
win be known as the Nationwide
Mutual Insurance Company: Farm
Bureau Mutual Fire Insurance
Company becomes Nationwide Mu-
tuai Fire Insurance Company; and
Farm Bureau Life becomes Nation
wide Life Insurance Company.
The companies now operate in
only 13 eastern states and the Dis
trict Of Columbia. Even so, the
auto company is the fourth largest
insurer Of cars in the nation.
Murray D. Lincoln, president, set
the keynote of the program in his
opening remarks when he said the
time had come for the companies
TO take q ''neW look" at themselves.
National expansion, he said, pre-
sented a tremendous challenge to
everyone connected with the COM
panies.
I'VE can effectively meet this
challenge" he asserted, "Only If
we continue to find out what peO-
ple's needs are-and then help
people meet those needs through
our companies.
During the telecast, Executive
Vice President Bowman DOss de-
tailed some Of the reasons behind
the decision to expand.
The companies rapid growth, he
said, argued for expansion. He
pointed out that In the last %
years, policies I'M force had risen
from $4,000 to 2,900,000In the same
period, assets jumped from $685.
600 to about $210000,000.
The companies" he said, "havC
developed unique methods Of Op-
GRAFTON which have been highly
successful and should work equal
" as well in other parts Of thu
country"
He pointed cut also that the com
Danies would be able to retaiI
much Of the present in-fOrce bust
ness now being lost when policy
holders move outside the cOmpa
nies' present operating territory.
Once the decision to expand ha,
been made, a new name becamt
mandatory. Mr.. DOss said. Their
are already Farm Bureau insurance
companies in 20 states outside tn
companies territory. Insurance de
naFtment and post Office regula
tions prohibit the use OF highl
similar names. Hence, if the com
panies we're to go truly "natiOn
wide, a new name was necessary
Howard Hutchinson, vice presi
dent in charge Of Insurance opera
tiOns, said the order Of expansiO
into other states had been deter
mined by studies conducted by th
firms market research departmen
and the A. c. Nielsen Company, 3
Chicago.
"We have decided to expand o
state by state basis, rather tina
all at once, he said "We'll begi
with those states where our higt
est market potential exists"
At the top of the list, Mr. Hutch
insOn named Illinois, Indiana, low
MissuOri, Massachusetts, and Cal
fornia.
Expansion would start, he sai
as soon as possible after SeptembS
1st when the change Of trademar
and name became legal.
Mr.. Hutchinson said the techn
calities involved in changing ii
company were enormously con
plicated.'
He said the companies must 81
amended articles Of incorporate
in every state amend company
censes and re-license all it's agents
and prepare new. policies. In al
he said, there we're about 400 sci
arate items requiring changes.
The change-OVer, he announce
Is already under way.
g. w Leftwich, vice pfesiden
actuarial, said the search for
new name was started about tv
years ago. Some 500 p0ssibiiiti
were considered. The original Ii
was reduced % about dozl
which were tested and eYaluate
The final choice was approved
the board Of directors.
Harry Culbreth. vice presiden
public relations, said the cOmpani
would start soon on an extensi'
advertising and promotional car
paign, designed to establish d
new name and trademark in Il
public mind. He said neWspape
would be used primarily in Il
campaign, supplemented with
heavy schedule Of televisiOn al
radio commercials.
During the telecast, Mr.. LincO
confirmed that an annOunceme
made last month concerning Il
streamlining Of the cOmpani,
management structure was a Dr
lude to the announcements ma
today
AT that time Mr.. Lincoln h
said that complete responsible
for the direction OF the compani
and subsidiaries was being turn
over to Mr. DOss, and that 9th
executive changes. resulting in
realignment Of departmental j
sp0nsibilities, we're pending
We've gOt to have an organic
ti0nal structure that will let
move more quickly and more effS
lively Ia responding to peOpl
needs, he said today
The changes we plan viii pla
more authority and responsible
closer to the point where Operati