Longtime Greenfield business undergoes merger

The Greenfield square’s oldest business recently went through a merger as Adair County Mutual became part of Guardian Mutual Insurance of Dallas Center, effective Jan. 1.

Adair County Mutual Insurance Association, at 168 Public Square, Greenfield, is a policyholder-owned organization that has existed since 1888, providing home and farm property insurance coverage. Mutual insurance associations are unique because they began in small communities, most likely by groups of farmers, when major catastrophes occured.

The company’s history began when resourceful settlers banded together to protect each other in their own insurance groups. The midwest’s oldest and purest form of cooperative effort spread the losses of a few among many. Adair County Mutual Insurance Association of Greenfield was a leader in this effort. It was first named Farmers' Mutual Fire Insurance Association of Adair County, Iowa, and blossomed from there.

The recent merger was the result of massive losses that occured from the May 21 tornado in this area as well as multiple weather events within the last four years.

“The impact to our surplus was so great that it was the only wise decision for the policyholders,” said Marcia Kralik, who oversees the Greenfield office. “The company is also required to abide by state guidelines for the surplus impact.”

Jeff Weddle will manage the combined Mutuals.

In addition to the tornado here, multiple challenges have been experienced industry-wide in the last four years, which has led to a very hard insurance market. These challenges have included the frequency and severity of weather; an increase in construction and repair costs; an increase in inflation and an increase in social inflation where there is an increased inclination for people to pursue legal action against an insurance company. Reinsurance rates are also higher due to local and global events as insurance companies have to have insurance policies just like their policyholders do the same.

Merging with Guardian Mutual Insurance means policyholders are able to remain insured instead of facing loss of coverage that would come as the result of a dissolution.

“Many insurance carriers have left the market and/or left Iowa altogether and will no longer insure home or farm property here,” Kralik said.

Guardian Mutual Insurance was known as Dallas County Mutual Insurance until 2023. That year, Dallas County Mutual merged with Glidden Mutual Insurance of Glidden and Marion County Mutual of Knoxville. With Adair County Mutual joining the fold, its writing territory blossoms to 23 counties in southwest Iowa.

The Mutual will now be known as Guardian Mutual Insurance and Adair County Insurance Agency will remain here as a separate entity under the name of Adair County Insurance Agency. The Agency will continue to offer a variety of insurance product lines including home and farm property.

Policies underwritten by Adair County Mutual Insurance will remain as is until their expiration date of the policy in 2025, at which time, the carrier name will be changed to Guardian Mutual Insurance.

“It has been our privilege to have served this community and surrounding counties for this great amount of time. Although we are saddened by the turn of events, weather and losses cannot always be controlled, therefore we look forward to remaining in this office to continue to serve our local friends and neighbors,” Kralik said. ”The strength that we will obtain from this merger will allow our local service to continue for years to come. This merger will serve as a strong partnership in honoring the legacy of our Farm Mutual policyholders. ”