US-based HCC Insurance Holdings has signed an agreement with CUNA Mutual Group to acquire Producers Ag Insurance Group (ProAg), for around $110m.
Based in Amarillo, Texas, ProAg has seven offices in the US, and employs around 500 people in 41 states.
The existing management team at ProAg will continue to operate the business.
ProAg president and CEO Michael Connealy said: "ProAg is excited about the opportunity to continue building our crop insurance franchise under HCC’s ownership. With HCC’s guidance and support, we expect ProAg’s strong agricultural risk management program to thrive and grow."
ProAg 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.
The company reported gross earned premiums of around $633.5m in 2013.
HCC Insurance Holdings CEO Christopher Williams said the crop insurance is a non-correlated line of business, and the company 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," Williams added.
Following the receipt of regulatory approvals, the transaction is expected to be completed in the first quarter of 2015.
HCC is a specialty insurer, with offices established in the US, the UK, Spain and Ireland.
Image: HCC Insurance to acquire crop insurance provider ProAg. Photo: courtesy of Evgeni Dinev/ FreeDigitalPhotos.net.