Iowa Insurance Commissioner Susan Voss has approved plans under which Farm Bureau Mutual Insurance Co. will be reorganized into a mutual holding company structure, FBL Financial Group Inc. announced this morning.

According to the order signed on Wednesday by Voss, FBL “is utilizing the reorganization as a vehicle to provide access to capital for future company growth and furtherance of strategic goals. The reorganization will allow (Farm Bureau Mutual) a more efficient option for raising capital, while utilizing different possible combinations for raising capital, and provide a structure that increases the overall financial flexibility of the enterprise.”

Farm Bureau Mutual policyholders approved the reorganization plan, along with the articles of incorporation and bylaws of the companies created as a result of the reorganization, on Oct. 30. Policyholders voted 17,529 to 3,928 in support of the reorganization, according to the order. With the Iowa Insurance Division’s approval this week, the plan will take effect on Jan. 1, FBL officials said in a press release.

Farm Bureau Mutual will form a mutual insurance holding company to be named Farm Bureau Mutual Holding Co. (MHC), and Farm Bureau Mutual will be reorganized as a stock property and casualty insurance company named Farm Bureau Property & Casualty Insurance Co.

Farm Bureau Mutual will also organize an intermediate holding company named Farm Bureau Multi-State Services Inc. All Farm Bureau Property & Casualty Insurance Co. shares will be owned by Farm Bureau Multi-State Services Inc. All Farm Bureau Multi-State Services shares will be owned by MHC.

According to the order, FBL has no current plans to consolidate or merge the mutual insurance company or to make any other material change in its business, corporate structure or management. The terms of existing policies will not be affected by the reorganization, and related membership interests and rights under policyholders’ contract of insurance will remain unchanged, the company said.

“From a policyholder perspective, the reorganization proposed by Applicant would do nothing more than create a different organizational structure within which Applicant operates,” stated the insurance commissioner’s order, which concluded that policyholders’ interests will be properly protected under the plan, and that the reorganization is fair and equitable to policyholders.

“We are pleased to be able to move this plan forward,” said Bruce Trost, FBL’s executive vice president of operations. “The new organizational structure provides greater flexibility for our property-casualty operations, and it will allow us to be even more competitive in the marketplace. That’s a good thing for consumers in the markets we serve.”