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Louisiana Farm Bureau Mutual Insurance Co. members have voted overwhelmingly to approve the insurer’s conversion from a mutual insurance company into a stock insurance company.
The measure passed with 93.7% of the 6,520 members who voted favoring the move.
A mutual insurance company is owned by its policyholders, while a stock insurance company is owned by its shareholders.
The plan is to place the Baton Rouge-based carrier, one of the state’s leading insurers, under the ownership of Southern Farm Bureau Casualty Insurance Co., a larger regional insurance group headquartered in Ridgeland, Mississippi.
The boards of both firms have approved a sponsored demutualization transaction in which Louisiana Farm Bureau would convert into a stock company and Southern Farm Bureau would purchase all shares of the newly converted entity.
Following the transaction, Louisiana Farm Bureau Mutual Insurance Co. would be renamed Louisiana Farm Bureau Insurance Co. and would operate as a wholly owned subsidiary of Southern Farm Bureau.
According to Louisiana Farm Bureau, becoming a subsidiary of Southern Farm Bureau would give the insurer “greater strategic and financial flexibility” through access to more resources and stronger capital support, providing benefits to both the short-term and long-term interests of the company and its policyholders.
“Our members have spoken and they understand that stability for the future comes from being a part of something bigger” Louisiana Farm Bureau President Richard Fontenot said in a statement, noting that policyholders will retain the same agent, same coverage and the same people in their community handling their claims. “We’re thankful for the overwhelming support of our members who will soon be part of a bigger Farm Bureau family.”
Eligible Louisiana Farm Bureau members will now receive equal cash compensation estimated at $791.10 per member in exchange for giving up their membership interests.
The insurer says members will not see any changes to their existing policies or premiums and will still have access to their local agents.
The transaction is expected to close in Q2 2026.
