West Des Moines-based Farmers Mutual Hail Insurance Company of Iowa (FMH) said today that it has entered into a merger agreement with Central Iowa Mutual Insurance Association, a Story City-based farm property insurer, to create a property and casualty division within FMH. Subject to approval by the Iowa Insurance Division and Central Iowa Mutual policyholders, the merger will be effective April 1. The transition will include combining Farmers Union Cooperative Insurance Co., a wholly owned stock subsidiary of FMH, with Central Iowa Mutual to form the new property and casualty division of FMH. The new division will be the fourth line of business under the FMH brand. It will be located in Central Iowa Mutual’s office in Story City. Farmers Mutual Hail’s home office will remain in West Des Moines.