The Farm Bureau of Leflore County will continue to serve all of its customers. The office isn't closing, a representative of the insurance agency said today.

This announcement comes on the heels of a statement from the company president saying that Mississippi Farm Bureau Mutual Insurance won't write policies in the state. Mississippi Mutual will transfer current policies over to another bureau subsidiary, Mississippi Farm Bureau Casualty.

In a prepared statement released this morning, David Waide, president of Farm Bureau Mutual, said the agreement will allow writing of property insurance coverage for most bureau members by the casualty subsidiary.

The agreement also will provide enough capital infusion to allow Farm Bureau Mutual to meet its obligations.

Mississippi Mutual has paid more than $450 million in policyholder claims in the wake of Hurricane Katrina, which hit the Gulf Coast in late August.

"To date, more than 80 percent of Mississippi Mutual's claims stemming from Hurricane Katrina have already been settled," said Waide in the statement.

"The issuance of policies by Mississippi Casualty, rather than Mississippi Mutual, is being done to address shortfalls at Mississippi Mutual as we resolve the remaining claims."

The state Department of Insurance shows that private claims have totaled $3.6 billion in the state.

The coastal counties of Harrison, Jackson and Hancock account for about $1.3 billion of that.

Waide promises that policyholders will have a smooth transition and continuity in services provided by Mississippi Casualty. They'll keep the same agents, he said.

The mutual insurance company, founded in 1952, was owned by policyholders, while the casualty insurance, founded in 1987, is privately held.

"With this agreement," Waide said in the statement, "Mississippi Mutual's former policyholders insured by Mississippi Casualty will continue to receive the same quality service that Mississippi Mutual has provided Mississippi families for over 50 years."