Bermudian reinsurer Everest Re has completed the sale of its US crop managing general agent, Heartland Crop Insurance, to CGB Diversified Services for $49m.
Following this development, CGB DS is expected to expand its reach and product range. The crop insurance company based in Jacksonville, Illinois also gets an opportunity of boosting its market share in a number of important states.
CGB Diversified Services president Ron Miiler had revealed in the past that the acquisition of Heartland would make the company as a significant force in the crop insurance industry in the future.
A letter of intent for the Heartland sale was signed in July end this year by the companies.
Everest, in connection with the sale, has entered into a strategic long term reinsurance relationship with the Heartland Crop buyer.
As part of it, the Bermuda holding company is to provide quota share reinsurance capacity on the combined crop insurance portfolio of the new unit made from CGB DS and Heartland Crop.
According to Everest Re Group Reinsurance Operation president and CEO John Doucette, the strategic sale of Heartland Crop to CGB DS gives it access to a much wider and diversified crop insurance portfolio.
CGB DS provides crop insurance products, risk management, and grain marketing expertise and other services to farmers across US 38 states.
It is a wholly owned subsidiary of the Los Angeles based CGB Enterprises and is a part of the Federal Crop Insurance system.
Everest Re Group, the former owner of Heartland Crop, is headquartered in Hamilton, Bermuda and is a global insurance and reinsurance organization.
Image: Everest Re Group has completed the sale of Heartland Crop Insurance to CGB Diversified Services. Photo courtesy of stockimages/freedigitalphotos.