JEFFERSON CITY, Mo – A recovery is underway in Missouri's mutual insurance landscape as 380 companies, many with over a century of service, report a significant turnaround in support for farmers and rural communities. In 2024, these mutuals addressed the needs of Missouri’s agricultural sector by managing over 205,000 policies representing more than $61 billion in gross in-force coverage.
The Missouri Department of Commerce and Insurance (DCI) recently announced a considerable reduction in net losses from $17.7 million in 2023 to just $4.8 million in 2024.
"Getting the mutuals to this point took some out-of-the-box thinking and collaboration with the industry to pull it off," said Company Regulation Division Director John Rehagen. "Although the first half of 2025 is shaping up to be challenging for many property and casualty insurers in Missouri, including the Mutual Pool, this initiative appears to have mitigated the volatility of operating results for each member while dramatically reducing their reinsurance costs."
One of the formidable challenges these mutuals face is the rising cost and diminishing availability of reinsurance coverage. In response, the DCI approved the Missouri Mutual Insurers Captive, a collaborative reinsurance pool, which began operations in late 2023. Many participating mutuals were previously reliant on a Wisconsin reinsurance provider, now undergoing liquidation. Without this innovative solution, numerous mutuals would have likely faced mergers or closures due to the scarcity of available reinsurance.
The reported results for the pool in 2024 tell a compelling story: every single member was profitable. Collectively, these mutuals generated a net profit of $4.8 million on $51.8 million in direct premiums, achieving a commendable profit margin of 9.2%, notably surpassing the overall industry’s average margin of -1.4%. The pool's membership has also expanded in 2025, growing from 18 to 21 mutual members, representing nearly one-third of the 65 licensed mutuals in the state.
"I am pleased to see the pool's results, in light of this year’s severe weather events, and believe it will play an important role in preserving this vital market segment that serves Missouri's farmers and rural communities in the future," remarked DCI Director Angela Nelson. "My conversations with Missouri's mutual insurance companies have been encouraging, and I look forward to our continued partnership to ensure their ongoing success."
DCI is charged with protecting Missouri consumers through the oversight of the insurance industry, banks, credit unions, utilities, and various professional licensees operating in the state. For more information about the department, please visit our website at dci.mo.gov.