Shares of Archer Daniels Midland Company (NYSE:ADM) ended Tuesday session in green amid volatile trading. The shares closed up +0.13 points or 0.30% at $43.94 with 1.67 million shares getting traded. Post opening the session at $43.85, the shares hit an intraday low of $43.49 and an intraday high of $44.00 and the price vacillated in this range throughout the day. The company has a market cap of $25.97 billion and the numbers of outstanding shares have been calculated to be 581.76 million shares.
On August 19, 2016 A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit ratings of “a-” of Agrinational Insurance Company (Agrinational) (Burlington, VT) and its wholly owned subsidiary, ADM Insurance Company (ADMIC) (Phoenix, AZ). The outlook for each of these ratings is stable.
The ratings reflect their adequate risk-adjusted capitalization and strategic role in the crop insurance program and as captive insurers of Archer Daniels Midland Company [NYSE:ADM].
Partially offsetting the favorable rating factors is the high net retention on property exposures, which has produced some variability in operating results and capital. Also, as a single parent captive, Agrinational is exposed to concentration risk as captives’ primary source of business is generally from one company. This is somewhat minimized by the group’s diversified book of business and the parent’s geographically disbursed assets. The captive program also provides insurance for a limited amount of third-party business sourced through an industry pooling arrangement. In addition, the crop insurance program, written by ADMIC and 100% reinsured to Agrinational, further diversifies the exposure and concentration of risk. This program continues to grow annually.
As a means of diversifying its investment portfolio, Agrinational has invested in the leasing of railcars, tractor trailers, tugboats and barges. Management considers these investments as long term and better aligned with Agrinational’s capital structure, while providing stability in investment returns.
Shares of Hormel Foods Corp (NYSE:HRL) ended Tuesday session in green amid volatile trading. The shares closed up +0.19 points or 0.49% at $38.65 with 1.35 million shares getting traded. Post opening the session at $38.46, the shares hit an intraday low of $38.32 and an intraday high of $38.66 and the price vacillated in this range throughout the day. The company has a market cap of $20.59 billion and the numbers of outstanding shares have been calculated to be 529.20 million shares.
Hormel Foods Corp (HRL) on September 7, 2016 announced that Jeffrey M. Ettinger will retire as chief executive officer on October 30, 2016. Ettinger will continue to serve as Hormel Foods chairman of the board. The Board of Directors elected James P. Snee to be the company’s next chief executive officer, effective October 31, 2016. Snee currently serves as president and chief operating officer.
Ettinger served as chairman of the board, president and chief executive officer from November 2006 to October 2015, when Snee was appointed president and Ettinger became chairman of the board and CEO. Ettinger joined Hormel Foods in 1989 and has served in a variety of roles, including senior attorney, product manager for Hormel® chili products and treasurer. In 1999, he was named president of Jennie-O Turkey Store — the largest subsidiary of Hormel Foods, based in Willmar, Minn. Ettinger was appointed president of Hormel Foods in 2004 and CEO effective January 1, 2006. He has served on the Hormel Foods Board of Directors since 2004, and currently serves on the boards of The Toro Company, Ecolab, Inc., North American Meat Institute, Grocery Manufacturers Association, The Hormel Foundation, The Hormel Institute and the Minnesota Business Partnership.
Under Ettinger’s leadership, Hormel Foods has grown through strategic acquisitions, organic growth and a continued focus on new product innovation. In 2016, Ettinger was named as one of the 30 World’s Best CEOs by Barron’s. In 2012, he was named Responsible CEO of the Year by Corporate Responsibility magazine. In addition, Ettinger is the founding chair of the company’s diversity and inclusion council, which aims to meet the growing needs of its diverse workforce and consumer base.
“Jeff has expertly piloted the company to significant growth and success during his tenure, leading a talented management team in the delivery of strong and consistent returns to Hormel Foods shareholders,” said John L. Morrison, the board’s Lead Director. “Under his leadership, the company added to an outstanding portfolio of brands through numerous strategic acquisitions, most notably Wholly Guacamole®, Skippy®, Muscle Milk® and most recently, the Applegate® and Justin’s® brands. While Jeff will certainly be missed, I am equally as confident in the leadership of Jim Snee as he assumes the role of CEO. Jim is a 27-year veteran of the company and served as president and chief operating officer for the last year. His excellent performance in this role, along with his successful experience in running the company’s International division and prior significant leadership roles in the affiliated foods and foodservice units within Refrigerated Foods, positions the company to continue to deliver outstanding results to its shareholders. The company is in excellent hands.”