Mississippi Insurance Department
Report of Examination
of
SOUTHERN FARM BUREAU CASUALTY
INSURANCE COMPANY
as of
Decemb
er 31, 2020
TABLE OF CONTENTS
Examiner Affidavit ..................................................................................................................... 1
Salutation .................................................................................................................................... 2
Scope of Examination ................................................................................................................. 3
Comments and Recommendations of Previous Examination ..................................................... 3
History of the Company .............................................................................................................. 3
Corporate Records ...................................................................................................................... 5
Management and Control ............................................................................................................ 5
Stockholders ................................................................................................................... 5
Board of Directors .......................................................................................................... 5
Committees ..................................................................................................................... 7
Officers ........................................................................................................................... 8
Conflict of Interest .......................................................................................................... 9
Holding Company Structure ....................................................................................................... 9
Organizational Chart....................................................................................................... 9
Affiliated and Related Party Transactions .................................................................... 12
Fidelity Bond and Other Insurance ........................................................................................... 14
Pensions, Stock Ownership and Insurance Plans ...................................................................... 14
Territory and Plan of Operation ................................................................................................ 14
Growth of Company ................................................................................................................. 15
Mortality and Loss Experience ................................................................................................. 16
Reinsurance ............................................................................................................................... 16
Accounts and Records............................................................................................................... 19
Statutory Deposits ..................................................................................................................... 19
Financial Statements ................................................................................................................. 20
Introduction .................................................................................................................. 20
Statement of Admitted Assets, Liabilities, Surplus and Other Funds - Statutory ........ 21
Statement of Income - Statutory ................................................................................... 22
Reconciliation of Capital and Surplus - Statutory ........................................................ 23
Reconciliation of Examination Adjustments to Surplus .............................................. 24
Market Conduct Activities ........................................................................................................ 25
Commitments and Contingent Liabilities ................................................................................. 25
Subsequent Events .................................................................................................................... 25
Comments and Recommendations ............................................................................................ 26
Acknowledgment ...................................................................................................................... 27
EXAMINER'S
AFFIDAVIT
AS
TO
STANDARDS
AND
PROCEDURES USED
IN
AN
EXAMINATION
State
of
Miss
i
ss
ippi,
Co
unty
of
Madison,
R.
Dal
e Miller, being
duly
sworn
, stat
es
as
fo
ll
ows:
I. I h
ave
authority to repr
ese
nt
the Mississippi Insurance D
epartment
in the
exa
mination
of
So
uthern
Farm
Bureau
Casua
lty Insuran
ce
Company
as
of
December
31,
2020.
2.
The
Mississippi Insuran
ce
Department
is
accredited
und
er
the
Nat
ional
Assoc
i
atio
n
of
I
nsurance
Co
mmi
ss
ioners Financial R
eg
ulation
Standards
and
Accreditation.
3. I h
ave
reviewed
the
exa
min
at
i
on
wo
rk
papers
and
exam
in
at
i
on
r
eport
,
and
the
exa
mina
ti
on
of
So
uthern
Farm
Bureau
Casua
l
ty
[nsurance
Co
mpany
was
performed
in a
manner
co
nsi
stent
with the sta
ndard
s
and
procedur
es
required by the
National
Association
of
Insurance
Co
mmissioners
and
the
Mississippi In
sura
nc
e Department.
The
affiant
says
nothing further.
f2ilzbJti.J!L
My
commission
exp
ir
es
();}obP,r-
/0
1
;J.0:)3/ [date]
I
So
uthern
Farm
Bur
eau
Cas
ualty Insuran
ce
Co
mpany
MID
Exa
min
at
ion
as
of
December
31,
2020
day
of
Page
I
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 2
June 15, 2022
Honorable Mike Chaney
Commissioner of Insurance
Mississippi Insurance Department
1001 Woolfolk Building
501 North West Street
Jackson, Mississippi 39201
Dear Commissioner Chaney:
Pursuant to your instructions and authorization and in compliance with statutory provisions, an
examination has been conducted, as of December 31, 2020, of the affairs and financial condition of:
SOUTHERN FARM BUREAU CASUALTY INSURANCE COMPANY
1800 East County Line Road
Ridgeland, Mississippi 39157
License #
NAIC Group #
NAIC #
FEETS #
7700932
0483
18325
18325-MS-2020-1
This examination was commenced in accordance with Miss. Code Ann. §83-5-201 et seq. and was
performed in Ridgeland, Mississippi, at the statutory home office of the Company. The report of
examination is herewith submitted.
MIKE CHANEY
Commissioner of Insurance
State Fire Marshal
MARK HAIRE
Deputy Commissioner of
Insurance
MAILING ADDRESS
Post Office Box 79
Jackson, MS 39205-0079
TELEPHONE: (601) 359-3569
MISSISSIPPI INSURANCE DEPARTMENT
501 N. WEST STREET, SUITE 1001
WOOLFOLK BUILDING
JACKSON, MISSISSIPPI 39201
www.mid.ms.gov
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 3
SCOPE OF EXAMINATION
We have performed our full-scope financial examination of Southern Farm Bureau Casualty
Insurance Company (“SFBCIC” or “Company”). The last examination covered the period of
January 1, 2011 through December 31, 2015. This examination covers the period of January 1,
2016 through December 31, 2020. This examination was coordinated with Mississippi as the lead
state and Arkansas, Florida, and Louisiana as participating states.
We conducted our examination in accordance with the National Association of Insurance
Commissioners (“NAIC”) Financial Condition Examiners Handbook (“Handbook”). The
Handbook requires that we plan and perform the examination to evaluate the financial condition,
assess corporate governance, identify current and prospective risks of the Company and evaluate
system controls and procedures used to mitigate those risks. An examination also includes
identifying and evaluating significant risks that could cause an insurer’s surplus to be materially
misstated both currently and prospectively.
All accounts and activities of the Company were considered in accordance with the risk-focused
examination process. This may include assessing significant estimates made by management and
evaluating management’s compliance with Statutory Accounting Principles. The examination does
not attest to the fair presentation of the financial statements included herein. If, during the course
of the examination an adjustment is identified, the impact of such adjustment will be documented
separately following the Company’s financial statements.
This examination report includes significant findings of fact, as mentioned in the Miss. Code Ann.
§83-5-201 and general information about the insurer and its financial condition. There may be
other items identified during the examination that, due to their nature (e.g., subjective conclusions,
proprietary information, etc.), are not included within the examination report but separately
communicated to other regulators and/or the Company.
COMMENTS AND RECOMMENDATIONS OF PREVIOUS
EXAMINATION
There were no comments and/or recommendations made by the Mississippi Insurance Department
(“MID”) examination team in the previous examination report, which covered the period from
January 1, 2011 through December 31, 2015.
HISTORY OF THE COMPANY
In 1947, the Farm Bureau Federations located in the states of Arkansas, Florida, Mississippi and
Texas organized individual investment corporations for the purpose of organizing the Company.
On September 25, 1947, the Company was formed under the laws of the State of Mississippi as a
as a property and casualty insurance company, with business commencing on September 30, 1947.
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 4
Subsequently, the Louisiana, South Carolina and Colorado Farm Bureau Federations acquired
equal shares of the Company’s capital stock and Florida sold its interest back to the Company.
Through December 31, 2008, the outstanding shares of SFBCIC were owned by the Farm Bureau
Federations in the states of Arkansas, Colorado, Louisiana, Mississippi, South Carolina and Texas.
Each entity held 666.6 shares or 16.67% of the 4,000 authorized shares of SFBCIC. The Texas
parties withdrew from SFBCIC as of December 31, 2008, and surrendered its 666.6 shares of stock
in exchange for shares of SFBCIC’s wholly owned subsidiary operating in the State of Texas
formed for purposes of the withdrawal. Because of the withdrawal of the Texas parties, SFBCIC
and its remaining shareholders desired to amend the Articles of Association, the Bylaws and the
Amended Membership Treaty under which it had operated. On December 14, 2009, the Treaty
was terminated and a new organization structure for the Company was created (the “original
reorganization”). Subsequent to the original reorganization, there were 10,428,000 shares of $1
par value common stock authorized and 1,082,842 issued. Of the issued shares, 2,640 shares were
voting shares and 1,080,202 were non-voting shares which were owned by the following
shareholders:
• Arkansas Casualty Investment Corporation,
• Colorado Farm Bureau Investment Company,
• FFBF Investment Corporation,
• Louisiana Farm Bureau Investment Corporation,
• Mississippi Farm Bureau Holding Corporation and
• South Carolina Farm Bureau Investment LLC
(collectively referred to as the “Investment Companies”). The Investment Companies were
majority owned by their respective Farm Bureau Federation/Organization (“Farm Bureau
Organization”).
Effective February 3, 2015, SFBCIC’s ownership structure underwent another change whereby a
new holding company, named Southern Casualty Holding Company (“SCHC”), was inserted
between SFBCIC and its previous shareholders as part of a reorganization. The 2015
reorganization was done for regulatory purposes and did not impact the financial condition, e.g.,
the capital and surplus of SFBCIC remained the same immediately before and after the
reorganization. In connection with the 2015 reorganization, the previous shareholder agreements
between SFBCIC, the Farm Bureau Organizations and the Investment Companies were terminated
and new shareholder agreements between SCHC, the Farm Bureau Organizations and the
Investment Companies were entered into with substantially the same terms as the original
shareholders agreement.
Subsequent to the 2015 reorganization, SFBCIC had 1,082,842 issued and outstanding shares of
one class of common stock, all of which was owned exclusively by SCHC. The Investment
Companies owned the following number of SCHC shares, which was the exact same number each
investment company owned of existing shares in SFBCIC prior to the 2015 reorganization.
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 5
Shares
Outstanding
Investment Companies
Arkansas
Colorado
Florida
Louisiana
Mississippi
South
Carolina
Total
Class A
220
220
220
220
220
220
1,320
Class B
371,315
1,316
--
322,333
229,324
157,234
1,081,522
Total
371,535
1,536
220
322,553
229,544
157,454
1,082,842
Class C shares were automatically converted to Class B shares at the end of the reorganization
transition period in December 2019. At December 31, 2020, there were 1,081,522 Class B shares
and no Class C Shares outstanding.
CORPO
RATE RECORDS
The Articles of Incorporation, Bylaws and amendments thereto were reviewed and duly applied in
other sections of this report where appropriate. Minutes of the meetings of the Stockholders, Board
of Directors (“Board”) and various committees, as recorded during the period covered by this
examination, were reviewed and appeared to be complete and in order with regard to actions
brought up at the meetings for deliberation and appropriate action, which included the approval
and support of the Company’s transactions and events, as well as the review of the audit and
examination report.
MANAGE
MENT AND CONTROL
Stockholders
As of December 31, 2020, the Company had 10,428,000 shares of $1 par value common stock
authorized with 1,082,842 shares issued and outstanding. All issued and outstanding shares were
voting shares. SCHC owned 100% of the shares issued and outstanding. The Company paid the
following amounts as dividends to stockholders during the examination period.
2016
$52,800
2017
$52,800
2018
$52,800
2019
$52,800
2020
$52,800
Board of Directors
The Articles of Incorporation and Bylaws vest the management and control of the Company’s
business affairs with the Board. The members of the duly elected Board, along with their place of
residence, year elected/appointed, and principal occupation, at December 31, 2020, were as
follows:
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 6
Name and Residence
Year
Elected/Appointed
Principal Occupation
Ronald Roy Anderson
Chairman of the Board
Ethel, LA
1985
Farmer and President of
Louisiana Farm Bureau
Federation
John Lawrence Hoblick, Sr.
Vice Chairman of the Board
DeLeon Springs, FL
2000
Farmer and President of Florida
Farm Bureau Federation
Richard Bryan Fontenot
Ville Platte, LA
2016
Farmer
Harry Legare Ott, Jr.
Orangeburg, SC
2016
Farmer and President of South
Carolina Farm Bureau
Carlyle Wallace Currier
Molina, CO
2011
Rancher
Thomas Michael Freeze
Keo, AR
2014-2018: 2020
Fish Farmer
Rodney Roscoe Land
Mayo, FL
2020
Farmer
George Newton Bryant
Easley, SC
2016
Farmer
Danny Russell Wright
Waldron, AR
2018
Poultry Farmer
Louis Joseph Breaux, IV
Kiln, MS
2019
Farm Manager
Richard Edward Hillman, II
Carlisle, AR
2009
Farmer and President of
Arkansas Farm Bureau
Federation
Steve Allen Johnson
Wauchula, FL
2015
Citrus Grower/Cattle Rancher
Theodore Hastings Kendall IV
Bolton, MS
2011
Farm Manager
Constance Jean Hass
Trinidad, CO
2020
Rancher
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 7
David Michael McCormick
Union Church, MS
2015
Farmer and President of
Mississippi Farm Bureau
Federation
Michael Gerard Melancon
Breaux Bridge, LA
2015
Sugar Cane Farmer
Donald James Shawcroft
Alamosa, CO
2010
Farmer and President of
Colorado Farm Bureau
William Keistler Coleman
Blair, SC
2016
Farmer
Committees
During the period covered by this examination, the following Board appointed committees were
utilized by the Company to carry out certain specified duties: Audit Committee, Compensation
Committee, Executive Committee and Investment Committee.
Audit Committee:
The Audit Committee had six members, all of whom were outside directors, which met the
requirements set forth by the Model Audit Rule. The Audit Committee’s responsibilities included
reviewing the audit report prepared by the outside accounting firm and making recommendations
to the Board regarding the audit report and the selection of an outside accounting firm. The Audit
Committee was also responsible for overseeing the Company’s compliance with the Annual
Financial Reporting Model Regulation and for making sure management established,
implemented, and monitored the system of internal controls over financial reporting.
Compensation Committee:
The Compensation Committee was comprised of the Presidents from each of the Farm Bureau
Federations. The Chairman of the Board was also the Chairman of the Compensation Committee.
The Compensation Committee duties included reviewing and making recommendations to the
Board with respect to compensation and to perform such other duties as appropriate for the
committee or as delegated by the Board.
Executive Committee:
The Executive Committee consisted of the Presidents from each of the Farm Bureau Federations
who serve on the Board. The Chairman of the Board was also the Chairman of the Executive
Committee. The Executive Committee had the power to exercise, conduct and control the business
of the Company between meetings of the Board. The Executive Committee had the sole and
exclusive power and authority to declare additional dividends.
Investment Committee:
The Investment Committee was comprised of Board and non-Board members; however, one
member of the committee must be the Chairman of the Board. The committee delegated to the
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 8
Investment Department the authority to transact the routine day-to-day investment duties
including, but not limited to, the sale, purchase, and transfer of stocks, bonds, securities, and other
investments, both real and personal. The Investment Committee reported to the Board regarding
the condition of the funds, securities and investments of the Company.
The following members served on the committees mentioned above at December 31, 2020.
Audit
Compensation
John Lawrence Hoblick, Sr., Chairman
Ronald Roy Anderson, Chairman
Ronald Roy Anderson
John Lawrence Hoblick, Sr.
David Michael McCormick
David Michael McCormick
Richard Edward Hillman
Rich Edward Hillman
Donald James Shawcroft
Donald James Shawcroft
Harry Legare Ott, Jr.
Harry Legare Ott, Jr.
Executive
Investment
Ronald Roy Anderson, Chairman
Ronald Roy Anderson, Chairman
John Lawrence Hoblick, Sr.
John Lawrence Hoblick, Sr.
David Michael McCormick
Robert Duff Wallace
Rich Edward Hillman
Max Turner Courtney
Donald James Shawcroft
Thomas Herndon Arthur
Harry Legare Ott, Jr.
Officers
The senior officers of the Company as of December 31, 2020 were:
Name of Officer
Number of
Years with
Company
Title
Robert Duff Wallace
36
President and Chief Executive Officer
Max Turner Courtney
29
Senior Vice President – Chief Financial Officer
Richard Ross Sims
30
Senior Vice President – Chief Operating
Officer
Lydia Catherine Warren
35
Senior Vice President – Legal and Secretary
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 9
Jerry Joseph Keating, Jr.
35
Senior Vice President – State Manager (MS)
Blaine Vernon Briggs
34
Senior Vice President – State Manager (LA)
Steven Clay Murray
39
Senior Vice President (Florida)
Kevin Eugene McKenzie
33
Senior Vice President – State Manager
(Arkansas)
William O’Neil Courtney
35
Senior Vice President – State Manager (South
Carolina)
Duane Burton Hardy
32
Senior Vice President – Claims
Laura Sorey Watkins
34
Senior Vice President – Human Resources
Conflict of Interest
The Company had formal procedures whereby disclosures were made to the Board of any material
interest or affiliation on the part of any officer or director that was, or would likely be, a conflict
with their official duties.
HOLDING COMPANY STRUCTURE
During the time period covered by this examination, the Company reported as a member of an
insurance company holding system as defined by Miss. Code Ann. §83-6-1. For each year of the
examination period, Holding Company Registration Statements were filed with the MID in
accordance with Miss. Code Ann. §83-6-5 and §83-6-9.
Organizational Chart
The organizational chart below displays the identities of the members of the holding company
structure that included the Company, and is followed by a brief description of the Company’s other
subsidiaries and interests.
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 10
SCHC was reported as the ultimate controlling person in the Holding Company Registration
Statement filed with the MID as of December 31, 2020. SCHC was formed in 2015 for the sole
purpose of holding all of the voting stock of the Company, the lead insurer in the group.
Below is a description of the Company’s wholly owned subsidiaries at December 31, 2020:
Arkansas Farm Bureau Casualty Insurance Company (“AFBCIC”) was incorporated on
February 6, 2004, under the laws of the State of Arkansas and its principal business purpose was
providing casualty insurance in the State of Arkansas.
Colorado Farm Bureau Insurance Company (“CFBIC”) was demutualized and converted to a
stock company effective July 1, 2019 thereby becoming a wholly owned subsidiary of SFBCIC.
Its principal business was providing property and casualty insurance coverage in the State of
Colorado.
Florida Farm Bureau Casualty Insurance Company (“FFBCIC’) was incorporated in Florida
on April 16, 1974, under the laws of the State of Florida. Its principal business, in association with
its wholly owned subsidiary, Florida Farm Bureau General Insurance Company (“FFBGIC”), was
providing property and casualty insurance coverage (principally automobile, property and general
liability) in the State of Florida. FFBCIC was also the parent of Florida Farm Bureau Agency, Inc.,
a noninsurance brokerage operation that provided an outlet for placing business for customers in
Florida which its parent did not wish to write.
Louisiana Farm Bureau Casualty Insurance Company (“LFBCIC”) was incorporated on
February 16, 1981, under the laws of the State of Louisiana, and its principal business was
providing casualty insurance coverage (principally automobile) in the State of Louisiana.
Southern Farm Bureau Casualty Insurance Company
Florida
Farm Bureau
Ins. Agency
Florida
Farm Bureau
General Ins. Co.
21817
Colorado Farm
Bureau Insurance
Company 13641
Louisiana
Farm Bureau
Casualty Ins. Co.
40924
Florida
Farm Bureau
Casualty Ins. Co.
31216
Mississippi
Farm Bureau
Casualty Ins. Co.
27669
Arkansas
Farm Bureau
Casualty Ins.
Rural Insurance
Agency
100% interest
Southern Casualty Holding Company
South Carolina
Farm Bureau
Insurance Company
14114
Grants Ferry Parkway LLC
49% Membership interest
Highland Colony Land
Company, LLC 33%
Membership interest
Venture Properties
50% Partnership
interest
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 11
Mississippi Farm Bureau Casualty Insurance Company (“MFBCIC”) was incorporated on
May 19, 1986, under the laws of the State of Mississippi, and its principal business was providing
property and casualty insurance coverage (principally automobile and homeowner) in the State of
Mississippi. Also, the Company was an authorized surplus lines writer in various other states.
South Carolina Farm Bureau Insurance Company (“SCFBIC”) was incorporated on February
11, 2011, under the laws of the State of South Carolina to provide casualty insurance, primarily
private passenger automobile. Effective April 1, 2014, SFBCIC purchased 100% of the company’s
outstanding common stock from South Carolina Farm Bureau Mutual Insurance Company.
SCFBIC began writing business during 2015.
Below is a description of the Company’s wholly owned subsidiaries that were dissolved during
the exam period:
Southern Farm Bureau Brokerage Company (“SFBBC”), in 1994, a noninsurance company
was organized and incorporated in the state of Mississippi as a wholly owned subsidiary of
SFBCIC. SFBBC was a noninsurance company formed primarily for conducting certain
investment and reinsurance brokerage activities for the Southern Farm Bureau group. In 2020,
SFBCIC’s management reviewed the group’s operations and organizational structure, and
concluded that operational efficiencies and expense reductions could be achieved if SFBBC
transferred its operations to SFBCIC. SFBBC’s Board approved the dissolution of the entity on
October 9, 2020. On November 30, 2020, SFBBC ceased operations and transferred all assets and
liabilities to SFBCIC, its parent and sole shareholder.
As a result of the dissolution of its former subsidiary, SFBBC, SFBCIC directly owns the
following:
• 100% of all the issued and outstanding voting securities of Rural Insurance Agency
• 33% of the membership interest of Highland Colony Land Company, LLC
• 49% of the membership interest of Grants Ferry Parkway, LLC
• 50% of the partnership interest of Venture Properties
Southern Farm Bureau Property Insurance Company (“SFBPIC”) was formed in August 1994
as a wholly owned subsidiary of SFBCIC to write property and casualty reinsurance for certain
associated Farm Bureau mutual companies in Arkansas, Mississippi, Louisiana, and South
Carolina. SFBPIC ceased assumption of new business after 2005 and entered into a “dormant”
state while managing run-off of outstanding claims related to the 2005 tropical storms and
hurricanes. Effectively all outstanding claims that were assumed by SFBPIC were settled in 2011.
As a way to eliminate operating costs, SFBCIC management sought permission from the MID to
dissolve SFBPIC in 2019. On October 4, 2019, the MID approved the Articles of Dissolution,
which terminated all operations and transferred all assets and liabilities to its parent, SFBCIC.
SFBCIC realized a loss of $21.1 million in investment income from the dissolution.
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 12
Affiliated and Related Party Transactions
The Company’s transactions with its related parties were reviewed and the following items were
deemed notable for purposes of this report.
The Company, along with its subsidiaries and affiliates, filed a consolidated federal income tax
return. The method of allocation among the companies was made primarily on a separate return
basis with current credit for any net operating losses or other items utilized in the consolidated
return. Intercompany tax balances were settled annually in the subsequent year.
Surplus debentures of related companies were purchased by SFBCIC to strengthen the issuer’s
financial position. These investments are carried at cost and reported as other invested assets.
Repayment of the surplus debentures (including interest) and certificates was permitted when and
if the issuing company met certain surplus requirements and required approval of the domiciliary
Insurance Department of the issuing company. Below are the surplus debentures with related
parties held as of December 31, 2020:
• On April 19, 2006, MFBCIC issued a $25,000,000 surplus note to SFBCIC with an interest
rate equal to the interest payable on twenty year U.S. Treasury Bonds as of the date of the
note. The interest rate was adjusted every second anniversary date and at December 31,
2020, the stated interest rate was 3.27%. The note was for a twenty year term with interest
due annually. The principal balance owed was $25,000,000 at December 31, 2020.
• On December 22, 2005, Louisiana Farm Bureau Mutual Insurance Company (“LA
Mutual”) issued a $15,000,000 surplus note to SFBCIC with an interest rate of 4.70% per
annum. The note is for a twenty year term with interest due annually. LA Mutual retired
$1,000,000 of the principal balance during 2015 reducing the carrying value to
$14,000,000. During the exam period, an additional $10,000,000 in principal payments
were received by the Company leaving an outstanding principal balance of $4,000,000 at
December 31, 2020.
• On March 29, 2013, South Carolina Farm Bureau Mutual Insurance Company (“SC
Mutual”) issued a $12,500,000 subordinated surplus note to SFBCIC with an interest rate
of 6.00% per annum. The note was for a twenty year term with interest due annually.
During the exam period, SC Mutual retired $2,500,000 of the principal balance leaving an
outstanding principal balance of $10,000,000 at December 31, 2020.
As result of the dissolution of its former subsidiary, SFBBC, the following notes were assigned to
SFBCIC in connection with the transfer of various levels of ownership in the following entities:
• Rural Insurance Agency note with an unpaid principal balance of $1,800,000 at December
31, 2020.
• Brandon Land, LLC note with an unpaid principal balance of $3,126,819 at December 31,
2020.
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 13
• Grants Ferry Parkway LLC note with an unpaid principal balance of $822,750 at December
31, 2020.
• Shiloh Land, LLC note with an unpaid principal balance of $2,826,052 at December 31,
2020.
On May 4, 2020, MFBCIC entered into a $10,000,000 line of credit and promissory note with
SFBCIC with an interest rate of 3.75%. The note has a maturity date of May 31, 2021. At
December 31, 2020, there were no amounts outstanding on the note.
As part of the 2009 original reorganization which was approved by the MID, SFBCIC issued notes
to certain shareholders in 2009. Each note bore interest at 8.00% based upon a 365-day year, with
interest and principal paid annually on December 1st of each year. The notes were paid in full
during 2019.
During 2019, as part of the demutualization and re-domestication of CFBIC to become a wholly
owned subsidiary of SFBCIC, the Company received an extraordinary dividend whereby nearly
all assets and liabilities were transferred. The extraordinary dividend received by the Company
had an approximate fair value and carrying value of $41,000,000 and $32,000,000, respectively.
The Company had joint expense allocation agreements with MFBCIC, its wholly owned
subsidiary, and the mutual companies in the states of Arkansas, Louisiana, and South Carolina.
Joint expenses allocated under this agreement were those expenses which were for the mutual
benefit of the companies. All joint overhead expenses were allocated pursuant to the formula
prescribed in one of the following four categories: loss adjustment expense, information system
expense, other routine/reoccurring joint expenses and other expenses. Under the terms of the
agreements, the joint expenses were paid by SFBCIC and subsequently reimbursed by MFBCIC
and the mutual companies. The total amount of joint expenses reimbursed to the Company for
2020 was $33,685,793.
The Company had expense allocation agreements with MFBCIC and FFBCIC in which certain
home office expenses were allocated to the subsidiaries each month. This allocation was performed
because of the support functions that the Company performed in the areas of legal, accounting,
claims, underwriting, information services, etc., for the subsidiaries. Under the terms of the
agreements, the expenses are paid by SFBCIC and subsequently reimbursed by the subsidiaries.
The total amount of expenses reimbursed to the Company for 2020 was $6,308,777.
The Company had licensing agreements with the various Farm Bureau Federations in the states of
Arkansas, Colorado, Louisiana, Mississippi, and South Carolina to use the “Farm Bureau” name
and logo in connection with selling, placing and underwriting of property and casualty insurance
products and services in the various states. In return, the Company paid royalty fees ranging from
0.95% to 1.07% per year on adjusted direct premiums written, less premiums collected from
residual market pool policyholders and dividends declared by the licensees. Payments made by the
Company under this arrangement for 2020 were $11,036,440. In addition, the Company
maintained sponsorship agreements with these same Farm Bureau Federations to make single
annual payments for SFBCIC’s recognition as a corporate sponsor of certain Farm Bureau events
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 14
such as conventions, meetings, and fundraisers. Payments made by the Company under this
arrangement for 2020 were $625,915.
The Company had service and cost sharing agreements with the various Farm Bureau Federations
or their subsidiaries in the states of Arkansas, Colorado, Mississippi, Louisiana, and South
Carolina by which the Farm Bureau Federations or their subsidiaries agreed to provide services or
furnish facilities to the Company based on the terms of the agreements. Services and costs shared
varied state by state. Payments made by the Company under this arrangement for 2020 were
$4,260,721.
The Company had agreements with other Farm Bureau companies and related mutual insurance
companies that provided for the rental of office facilities, equipment, automobiles, data processing
as well as the allocation of certain operating and underwriting expenses. Management believed
that such agreements were beneficial to SFBCIC in providing operating efficiency and prompt
service to policyholders.
Additionally, the Company had reinsurance agreements in place with various subsidiaries and
affiliates. These agreements are discussed further within the Reinsurance section of this report.
FIDELITY BOND AND OTHER INSURANCE
The Company was insured under various insurance policies to protect its interests. In particular,
the Company maintained directors and officers coverage, professional liability coverage,
electronic and computer crime coverage, and fidelity coverage. The Company had a financial
institution bond with a $5,000,000 single loss limit of liability and a fiduciary liability policy with
a $10,000,000 single loss limit of liability which exceeded the NAIC’s suggested minimum
amount for fidelity coverage.
PENSIONS, STOCK OWNERSHIP AND INSURANCE PLANS
The Company provided a noncontributory defined benefit retirement plan, a 401(k) plan, a flexible
spending plan, as well as various insurance coverages, which included group term life, medical
and dental, accidental death, long-term disability and worker’s compensation. Provisions were
made within the financial statements for obligations in regard to the benefits and welfare programs
provided.
TERRITORY AND PLAN OF OPERATION
As of December 31, 2020, the Company was authorized to transact the following lines of business
in the State of Mississippi:
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 15
Accident & Health
Home/Farm Owners
Automobile Physical Damage/Liability
Inland Marine
Boiler and Machinery
Ocean Marine
Casualty/Liability
Plate Glass
Fidelity
Surety
Fire/Allied Lines
The Company was a multi-line regional property and casualty insurance company and operated
through decentralized operations in the following six states: Arkansas, Colorado, Florida,
Louisiana, Mississippi and South Carolina. The Company specialized in personal lines, primarily
casualty insurance coverages with an emphasis on private passenger auto and farm general liability
coverages.
The Company issued automobile business in the states of Arkansas, Louisiana and South Carolina
with a small portion of assigned risk policies directly written in Mississippi. Further, the Company
assumed automobile business from Farm Bureau mutual companies in the States of Colorado,
Louisiana and South Carolina in addition to their wholly owned subsidiaries, LFBCIC, MFBCIC
and SCFBIC. The Company also assumed property business from CFBIC.
GRO
WTH OF COMPANY
2020 2019 2018 2017 2016
Total admitted assets 2,472,114,695$ 2,484,472,672$ 2,365,724,018$ 2,269,349,649$ 2,161,621,215$
Total liabilities 1,015,124,355$ 1,031,149,153$ 970,361,682$ 931,483,402$ 874,185,224$
Surplus as regards policyholders 1,456,990,340$ 1,453,323,519$ 1,395,362,336$ 1,337,866,247$ 1,287,435,991$
Net cash from operations 81,102,254$ 118,443,214$ 98,302,739$ 28,354,554$ (13,337,519)$
Total adjusted capital 1,456,990,340$ 1,453,323,519$ 1,395,362,336$ 1,337,866,247$ 1,287,435,991$
Authorized control level risk-based capital 143,545,184$ 107,888,291$ 98,811,657$ 94,665,625$ 84,577,356$
Direct premiums written 296,195,673$ 308,027,468$ 304,280,527$ 280,945,078$ 249,005,753$
Premiums assumed 758,057,263$ 762,253,756$ 744,803,122$ 718,363,278$ 658,483,427$
Premiums ceded 47,770,522$ 36,812,185$ 35,111,866$ 38,055,042$ 37,510,301$
Net premiums written 1,006,482,414$ 1,033,469,039$ 1,013,971,783$ 961,253,314$ 869,978,879$
Net underwriting gain (loss) 7,759,757$ 17,359,709$ (970,676)$ (33,842,088)$ (111,296,879)$
Net investment gain 67,588,699$ 23,827,734$ 42,838,418$ 45,151,185$ 39,848,432$
Net income (loss) 72,533,836$ 32,277,639$ 43,256,458$ 79,552,919$ (50,322,367)$
Return on equity 5.0% 2.2% 3.1% 5.9% -3.9%
Net loss ratio 79.5% 79.3% 81.3% 83.8% 92.2%
Expense ratio 20.0% 19.0% 18.5% 19.3% 20.5%
Investment yield 1.8% 1.9% 1.8% 1.8% 1.9%
Liquidity ratio 39.6% 56.8% 61.8% 62.5% 61.0%
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 16
MORTALITY AND LOSS EXPERIENCE
The MID contracted with Merlinos & Associates, Inc. to review the actuarial analysis supporting
the Company’s carried loss and loss adjustment expense reserves. Based on the examination
actuarial evaluation, the Company’s estimates for gross and net unpaid loss and loss adjustment
expenses appeared to be reasonably stated in all material respects.
REINSURANCE
The Company had various reinsurance agreements with their wholly owned subsidiaries as well
as other related and non-related entities.
Assumed:
At December 31, 2020, SFBCIC assumed 100% of the following lines of business from its
affiliated and related entities:
• All premiums and exposures for automobile, farm liability, flood, and other general
liability business written by MFBCIC through a multi-line agreement.
• All business written by SCFBIC through a multi-line agreement.
• All business written by CFBIC through a multi-line agreement.
• Automobile business written by LA Mutual.
• Automobile and other liability lines of business written by LFBCIC and SC Mutual.
• Farm liability and farm package policies, including endorsed limited farm pollution and
equipment breakdown coverage written by SC Mutual and Farm Bureau Mutual Insurance
Company of Arkansas, Inc. (“AR Mutual”).
• Umbrella business written by MFBCIC, AR Mutual, LA Mutual, and SC Mutual net of
facultative and other inuring reinsurance.
• Flood business written by LFBCIC and SC Mutual.
• Flood business written by FFBGIC that is retroceded by FFBCIC to the Company.
Additionally, for homeowner and other property lines business, the Company assumed the ultimate
net loss for Section II Liability in excess of $750,000 written by AR Mutual, LA Mutual, and SC
Mutual. Section II Liability (also referred to as excess casualty) was the portion of the general
liability coverage provided in a package policy that also offers property insurance.
The Company also assumed business from American Agricultural Insurance Company (“AAIC”)
for various lines of business as well as mandatory assumptions from various states mandatory
pools. In addition, the Company entered into Multiline Aggregate Excess of Loss and Expense
Ratio Retrocessional Agreement with AAIC through which the Company assumed a portion of the
loss and defense and cost containment expenses of the exposures carried by AR Mutual, LA
Mutual, and SC Mutual.
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 17
At the examination date, the principle companies with which business was assumed and the
respective premium amounts assumed for year ended 2020 were as follows:
Ceding Company
Assumed
Premiums
Florida Farm Bureau Casualty Insurance Company
$ 6,082,000
Louisiana Farm Bureau Casualty Insurance Company
$ 249,391,000
Mississippi Farm Bureau Casualty Insurance Company
$ 247,951,000
South Carolina Farm Bureau Insurance Company
$ 121,125,000
Colorado Farm Bureau Insurance Company
$ 73,916,000
Farm Bureau Mutual Insurance Company of Arkansas
$ 9,358,000
Louisiana Farm Bureau Mutual Insurance Company
$ 24,335,000
South Carolina Farm Bureau Mutual Insurance Company
$ 8,629,000
American Agricultural Insurance Company
$ 17,256,000
Ceded:
The Company limited the maximum net loss that can arise from large risks or risks in concentrated
areas of exposure by reinsuring (ceding) certain levels of risk with other insurers or reinsurers,
either on an automatic basis, under general reinsurance contracts known as “treaties,” or by
negotiation for substantial individual risks. The Company maintained various forms of reinsurance
on essentially all lines. Ceded reinsurance was treated as the risk and liability of the assuming
companies.
The liabilities for losses and loss adjustment expenses at December 31, 2020 were reduced for
reinsurance ceded of approximately $14,583,000. These amounts would represent a liability of the
Company if the reinsurers were unable to meet their obligation for existing unpaid losses ceded
under reinsurance agreements.
At the examination date, the principle reinsurers and respective premium amounts ceded for year
ended 2020 and total amounts recoverable at December 31, 2020, were as follows:
Assuming Company
Ceded
Premiums
Recoverable
Partner Re US
$ 180,000
$ -
Renaissance Reinsurance U.S. Inc.
$ 240,000
$ -
Transatlantic Reinsurance Company
$ 180,000
$ -
American Agricultural Insurance Company
$ 23,041,000
$ 11,763,000
National Flood Insurance Program
$ 23,876,000
$ 15,714,000
Factory Mutual Insurance Co.
$ 253,000
$ 280,000
For the Company’s umbrella exposures that were either written directly by SFBCIC or written by
a related or associated Farm Bureau entity and 100% ceded to SFBCIC, the Company had the
following reinsurance agreements in place at December 31, 2020:
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 18
• An umbrella excess of loss agreement with a $1,000,000 retention for umbrella policies
with limits of $1,000,000 to $5,000,000.
• A facultative reinsurance agreement for umbrella policies with limits of $5,000,000 to
$15,000,000 and a retention of $5,000,000 and $10,000,000 which was subject to the
umbrella excess of loss reinsurance agreement previously discussed.
• An umbrella quota share reinsurance agreement regarding Colorado exposures that applied
to umbrella policies with limits of $1,000,000 up to $5,000,000 with SFBCIC retaining
10% of the first $1,000,000.
For the Company’s primary casualty lines of business (automobile liability, general liability and
farm environmental liability) that are either written directly by SFBCIC or written by a related
Farm Bureau entity and ceded to SFBCIC, the Company had a liability excess of loss reinsurance
agreement in place with a $1,000,000 retention for each loss event at December 31, 2020. The
2020 reinsurance structure had five layers, with aggregate limits applying only to layers 4-5.
Layer
Retention
Per Occurrence Limit
1
$ 1,000,000
$ 2,500,000
2
$ 3,500,000
$ 5,000,000
3
$ 8,500,000
$ 5,000,000
4
$ 13,500,000
$ 7,500,000
5
$ 21,000,000
$ 9,000,000
All layers
$ 29,000,000
During 2020, all of the direct and assumed flood exposure was ceded 100% to the National Flood
Insurance Program.
Additionally, the Company, along with its wholly owned subsidiaries, had property and auto
catastrophe excess of loss reinsurance agreements with an initial company retention of $10 million
and total coverage of $1.05 billion in place at December 31, 2020.
Layer
Retention
Per Occurrence Limit
*Underlying
$ 10,000,000
$ 40,000,000
1
$ 50,000,000
$ 50,000,000
2
$ 100,000,000
$ 200,000,000
3
$ 300,000,000
$ 400,000,000
**Next Layer
$ 700,000,000
$ 200,000,000
Over Other Protections
$ 900,000,000
$ 150,000,000
*The underlying layer includes a $10 million aggregate annual deductible.
**This layer includes a top and drop of $50 million.
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 19
ACCOUNTS AND RECORDS
The Company utilized a computerized accounting system on which general ledger information
was maintained. Detailed general ledger information was traced to the trial balance and the
December 31, 2020 annual statement, without material exception. The Company was audited
annually by an independent CPA firm.
The primary data center was housed at an outside location with the backup storage center located
at the Home Office. The Company continues to have the mainframe in operation for some legacy
systems but those systems are continually being transferred from the mainframe to the distributed
network. The Company was responsible for physical security, computer operations including,
backups and disaster recovery over the mainframe and distributed network servers, as well as the
applications which resided on them.
STATUTORY DEPOSITS
The Company’s statutory deposits with the State of Mississippi complied with Miss. Code Ann.
§83-19-31(2). The following chart displays the Company’s deposits at December 31, 2020.
State Par Carrying Fair
Description Deposited Value Value Value
State Bond Mississippi 2,000,000$ 2,284,656$ 2,519,940$
T
otal Held in Mississippi 2,000,000 2,284,656 2,519,940
State Bond Arkansas 175,000 185,506 206,623
State Bond South Carolina 200,000 203,159 208,018
Total Held in all Other States 375,000 388,665 414,641
Total of all States 2,375,000$ 2,673,321$ 2,934,581$
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 20
SOUTHERN FARM BUREAU CASUALTY INSURANCE COMPANY
FINANCIAL STATEMENTS
EXAMINATION AS OF DECEMBER 31, 2020
Introduction
The following financial statements reflect the same amounts reported by the Company and consist
of a Statement of Admitted Assets, Liabilities, Surplus and Other Funds - Statutory at December
31, 2020, a Statement of Income - Statutory for year ended December 31, 2020, a Reconciliation
of Capital and Surplus - Statutory for examination period ended December 31, 2020, and a
Reconciliation of Examination Changes to Surplus - Statutory at December 31, 2020.
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 21
Statement of Admitted Assets, Liabilities, Surplus and Other Funds – Statutory
December 31, 2020
Admitted Assets
Bonds 1,286,467,688$
Common stocks 797,902,361
Mortgage loans 2,792,304
Pro
perties occupied by the company 16,540,523
Properties held for sale 266,327
Cash, cash equivalents and short-term investments 46,709,980
Other invested assets 66,236,808
Investment income due and accrued 12,983,656
Uncollected premiums and agents' balances in the course of collection
1,272,215
Deferred premiums, agents' balances and installments booked but deferred
and not yet due
166,291,690
Funds held by or deposited with reinsured companies 5,557,637
Current federal and foreign income tax recoverable and interest thereon 13,629,055
Net deferred tax asset 40,303,764
E
lectr
onic data processing equipment and software 3,618,587
Receivable from parent, subsidiaries and affiliates 1,797,055
Other receivables 9,745,045
Total admitted assets 2,472,114,695$
Liabilities, Surplus and Other Funds
Losses 375,137,781$
Loss adjustment expenses 70,606,176
Commissions payable, contingent commissions and other similar charges 10,208,818
Other expenses 5,380,760
Taxes, licenses and fees 1,798,492
Unearned premiums 305,934,396
Advance premium
8,870,494
Ceded reinsurance premiums payable 2,499,000
Amounts withheld or retained by company for accounts of others
44,859,464
Payable to parent, subsidiaries and affiliates 4,515,516
Derivatives 746,981
Payable for securities 8,821,642
A
ccrued
benefit cost 85,714,765
Liability for benefits 74,219,665
Other payables 15,810,405
Total liabilities 1,015,124,355
Common capital stock 1,082,842
Gross paid in and contributed surplus 620,491
Unassigned funds (surplus) 1,455,287,007
Surplus as regards policyholders 1,456,990,340
Total liabilities and surplus as regards policyholders 2,472,114,695$
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 22
Statement of Income – Statutory
For the Examination Period Ended December 31, 2020
Underwriting Income
Premiums earned 1,017,368,481$
De
ductions:
Losses incurred 693,260,746
Loss adjustment expenses incurred 115,064,914
Other underwriting expenses incurred 201,283,064
Total underwriting deductions 1,009,608,724
Net underwriting gain (loss) 7,759,757
Investment Income
Net investment income earned 40,731,641
Net realized capital gains (losses) less capital gains tax 26,857,058
Net investment gain 67,588,699
Other Income
Net loss from agents' or premium balances charged off (586,505)
Finance and service charges not included in premiums 25,341
Aggregate write-ins for miscellaneous income 4,275,704
Total other income 3,714,540
Net income before dividends to policyholders, after capital gains tax and
before all other federal and foreign income taxes 79,062,996
Federal and foreign income taxes incurred 6,529,160
Net
Income 72,533,836$
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 23
Reconciliation of Capital and Surplus – Statutory
For the Examination Period Ended December 31, 2020
2020 2019 2018 2017 2016
Surplus as regards policyholders,
beginning of the year $ 1,453,323,519 $ 1,395,362,336 $ 1,337,866,247 $ 1,287,435,991 $ 1,317,833,159
Net income 72,533,836 32,277,639 43,256,458 79,552,919 (50,322,367)
Change in net unrealized capital
gains or (losses) (42,758,147) 29,205,348 25,330,754 25,758,272 32,162,548
Change in net deferred income tax 306,501 (632,105) (10,730,224) (86,830,840) 15,822,917
Change in nonadmitted assets (14,598,439) (6,279,042) 8,150,205 52,514,648 (24,312,255)
Dividends to stockholders (52,800) (52,800) (52,800) (52,800) (52,800)
Change in liability for benefits (11,764,130) (28,652,126) (8,027,092) (16,528,139) 3,233,227
Extraordinary Dividend from - 32,094,269 - - -
Subsidiary
Recognition of Transition Liability
under SSAPs 92 and 102 - - (431,212) (3,983,804) (6,928,438)
Surplus as regards policyholders,
end of the year $ 1,456,990,340 $ 1,453,323,519 $ 1,395,362,336 $ 1,337,866,247 $ 1,287,435,991
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 24
Reconciliation of Examination Adjustments to Surplus
For the Examination Period Ended December 31, 2020
There were no changes made to the assets, liabilities or surplus balances reported by the Company
for the year ended December 31, 2020. The surplus as regards policyholders, which totaled
$1,456,990,340 as of the examination date, was determined to be reasonably stated and in
compliance with Miss. Code Ann. §83-19-31.
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 25
MARKET CONDUCT ACTIVITIES
A full scope market conduct examination was not performed; however, limited procedures were
performed on certain areas of the Company’s market conduct. The areas in which limited
procedures were performed included operations/management, complaint handling, producer
licensing, underwriting and rating, and claims. No significant exceptions with regard to the limited
procedures performed were noted.
COMMITMENTS AND CONTINGENT LIABILITIES
During and subsequent to the examination period, the Company was not involved in litigation
outside the normal course of business.
SUBSEQUENT EVENTS
On February 22, 2021, John Lawrence Hoblick was elected Chairman of the Board of the
Company, replacing the retiring Ronald Roy Anderson. On this same date, David Michael
McCormick was elected Vice Chairman of the Board of the Company replacing Mr. Hoblick who
was elected Chairman.
On May 31, 2021 Arkansas Farm Bureau Casualty Insurance Company, a wholly owned subsidiary
of the Company, was dissolved.
Lydia Catherine Warren retired effective June 1, 2021. Johnny Victoria Sargent, Jr. was elected to
replace Mrs. Warren as Senior Vice President – Legal & Secretary of the Company, effective June
1, 2021.
John Faulkner Bonner was elected as Senior Vice President – State Manager effective September
1, 2021.
On November 30, 2021, Florida Farm Bureau Agency, Inc., a wholly owned subsidiary of Florida
Farm Bureau Casualty Insurance Company, was dissolved. FFBCIC is a wholly owned subsidiary
of the Company.
During 2021, the Company and MFBCIC submitted a multiline quota share reinsurance agreement
to the MID for review and approval. Per the terms of this agreement, MFBCIC would cede 100%
of its risks to the Company. This agreement was approved by the MID on October 29, 2021.
Additionally, on May 17, 2022, MFBCIC filed an extraordinary dividend request related to the
multiline agreement which was approved by the MID on June 9, 2022.
On January 3, 2022, the Company received the outstanding surplus note of $25 million from
MFBCIC. At the examination report date, all outstanding interest related to this surplus note has
Southern Farm Bureau Casualty Insurance Company
MID Examination as of December 31, 2020 Page 26
been paid.
On February 21, 2022, David Michael McCormick was elected Chairman of the Board of the
Company, replacing the retiring John Lawrence Hoblick. On this same date, Richard Edward
Hillman was elected Vice Chairman of the Board of the Company replacing Mr. McCormick who
was elected Chairman.
COMMENTS
AND RECOMMENDATIONS
There were no comments and/or recommendations deemed necessary for purposes of this
examination report.
ACKNOWLEDGMENT
The
examiners representing the Mississippi
In
surance Depa11ment and participating m this
examination were:
Examiner-in-charge:
Supervising Examiner:
Lead Actuary:
Lead IT Specialist:
Examiner:
Examiner:
Examiner:
R. Dale Miller, CPA,
CFE
, CFF
Joseph R.
May
,
CPA
,
CMA
, CFE,
CIE
Robert
P.
Daniel,
ACAS
,
MAAA
David E. Mills, CISA,
CTGA
,
CGEIT
,
MCSE
Andrea J. Harbison,
CPA
Sophia Tran,
CPA
Britain Welzien
The courteous cooperation
of
the officers and employ
ees
responsible for
as
sisting m the
examination is hereby acknowledged and appreciated.
Respectfully submitted,
R. Dale Miller,
CPA
,
CFE
, CFF
Examiner-in-charge
Mark
Coo
ley,
CFE
Mississippi Insurance Department Designee
Southern Farm Bureau Casualty
In
surance
Company
MID
Exam
in
ation
as
of
December 31, 2020
Page 27