Everest Re Group has announced that it has signed a Letter of Intent for the sale of its U.S. crop insurance company, Heartland Crop Insurance, to CGB Diversified Services.
Upon completion of the sale, Everest will enter into a strategic long term reinsurance relationship with CGB DS, to provide quota share reinsurance capacity on the combined crop insurance portfolio of the Diversified/Heartland companies.
CGB Diversified Services, Inc. is one of the fastest growing crop insurance companies in the U.S., offering its crop insurance products and services to farmers across 38 states. With the acquisition of Heartland, CGB DS will grow its footprint and product set along with significantly increasing its market share in a number of key states.
This transaction is contingent upon all customary closing provisions, including the finalization of the Stock Purchase Agreement, and all required regulatory and Board approvals.
John Doucette, President and CEO of the Everest’s Reinsurance Operation, commented, “We are excited to enter this strategic reinsurance partnership with CGB DS. They are a well-respected crop insurance operation in the U.S. with strong market penetration. This alliance provides Everest access to a much broader, more diversified, crop insurance portfolio.”
Dom Addesso, President and CEO of Everest Re Group, further commented, “CGB DS presented us with a compelling strategic option. The opportunity to grow and diversify in the crop insurance business at a much more rapid pace and with economies of scale is an extremely attractive alternative.”
“CGB Diversified Services could not be more pleased to welcome the Heartland family of employees, its agents and customers to CGB,” said Ron Miiller, President. “We look forward to collectively accomplishing many of the goals we share together. Our combined strength will make us a significant force in our industry in the years ahead.”