The Patton Agency in Storm Lake has been notified by the American Mutual Holding Company that nearly four million dollars in cash or company stock will be distributed to American Mutual and Central Life Insurance policy holders in the Storm Lake area. The merged companies are now called AmerUs Life.
A few months ago, all policyholders were given the choice of taking cash or stock, with a total of nearly 800 million being distributed throughout the United States by the Des Moines based company. The pay out amounts range from $500 to about $50,000 and is based on the size, type, and age of the policy as well as the amount of premium paid. Also included in the calculations of the pay out was the mortality and profitability of each particular series of policies.
Patton said that most of his policyholders were going to be receiving much more than they had anticipated when first hearing of the demutualization process. Demutualization is the name given the process when a mutual company changes to a stock company.
One of the reasons that the pay out will be so large in this area is that the Patton Agency is one of the older agencies with over 100 million dollars of life insurance in force. Retention has been very high within the agency, with many of the policies over 25 years old.
Agents with the Patton Agency and AmerUs in Storm Lake are Tim Horsey, Lois Lytle and Bill Patton.