Yet another banner year for Federated

It’s business as usual for Owatonna’s Federated Insurance as the insurance giant posted yet another record-breaking year for 2025.

The company’s top official, Nicholas Lower, delivered the exciting news at the 122^nd annual policyholders meeting April 21 in Owatonna. “This is one of the most successful years in our 122 years,” Lower told the group. “Thirty new corporate records were set.”

In 2025, Federated’s total assets grew by $1.5 billion to $15 billion. Other records included total invested assets of $13. 3 billion, up from $11.9 billion in 2024; policyholders’ surplus cracked $6.6 billion, up almost $1 billion from the previous year and total property and casualty and life premium hit $3.5 billion.

In addition to multiple records, Federated also achieved many other milestones last year:

• Life insurance collected premium of $338 million, $3.05 billion in assets and $817 million in capital and surplus.

• Federated was rated A+ by insurance industry analyst A.M. Best for the 27^th consecutive year.

• Federated was named to the 2025 Ward’s 50 group of top performers for property-casualty and life-health.

Federated’s policyholders have grown from 29,000 in 2015 to 47,000 last year and premiums have increased from $1.62 billion in 2015 to $3.51 billion last year. “We are on our way to achieve $5 billion in premiums,” Lower said.

But Lower cautioned the policyholders in attendance that “the larger we get, the more difficult it will be to grow.” He added that the steady growth is a challenge facing the company and “we have to double down to be better every day.”

While Federated’s expenses grew by $50 million last year, the company’s expense ratio declined to 33.5% from 35.8 $ in 2023 and 41.1% in 2015, according to Lower. “We have strategic management growth,” he said.

The company’s loss ratio declined to 53.4% last year from 57.5% in 2023, Lower said, noting the company benefited from no hurricanes hitting the U.S. last year. “I promise you risk management is making a difference,” he said. “We are having an impact.”

The solid performance by Federated with many company benchmarks also carried over to its commitment in the community. Last year’s Federated Challenge raised a record-breaking $4.9 million for Big Brothers Big Sisters. Since 2005, the Challenge has raised $62 million for youth mentoring, which Lower drew applause from the audience in sharing that number. Federated was named to the 2025 National Corporate Mentoring Honor Roll.

Lower pointed out an impressive $451,793 was raised through employee donations and Federated’s corporate gift during the United Way’s annual campaign. Of the funds raised for United Way, $350,000 stays in Steele County.

Another key area in which Federated supports Owatonna is by partnering with Wallin Education Partners to award five students from Owatonna High School with Wallin Scholarships. Over the past five years, Federated has committed to 25 students with multi-year scholarships for an investment of $575,000.

“The bottom line is your company is incredibly strong,” said Lower, who is Federated’s chairman, president and CEO. “We are in the strongest financial position ever in our 122-year history. This 122-year-old masterpiece is a world class organization.”

He added, “As a mutual company, this financial strength allows us to invest in products, risk management services, innovative technology and our Direct Client Service Model, which enables us to provide face-to-face service to clients across the country. Our future, our clients’ future and our association partners’ future have never been brighter.”

Federated employs 3,000 people with the majority based in Owatonna.