US-based HCC Insurance Holdings has completed the acquisition of Producers Ag Insurance Group (ProAg) from CUNA Mutual Group, for $105m.

crop

HCC noted that the acquisition marks the firm’s entry into the crop insurance business.

Based in Amarillo of Texas, ProAg has seven offices in the US, and employs around 500 people in 41 states.

The company is said to be one of the top writers for crop insurance in the US, and underwrites multi-peril crop, crop hail, named peril and livestock insurance.

ProAg reported gross earned premiums of around $633.5m in 2013.

Both the companies entered into the deal at the end of September 2014.

At the time of acquisition, HCC Insurance Holdings CEO Christopher Williams said: "Crop insurance is a non-correlated line of business we strategically targeted to add to HCC’s diversified portfolio of specialty insurance businesses.

"We believe ProAg provides a solid platform to incrementally grow our profitability. We are pleased to welcome the ProAg management team and employees to HCC."

HCC is a specialty insurer, with offices located in the US, the UK, Spain and Ireland. The company had around $10.8bn assets and shareholders’ equity of about $3.9bn, as of 30 September 2014.


Image: HCC Insurance has acquired crop insurance company ProAg. Photo: courtesy of suphakit73/ FreeDigitalPhotos.net.