Crop insurance provider Producers Ag Insurance Group (ProAg) has agreed to acquire crop managing general agent (MGA) AmTrust Agriculture Insurance Services (AmTrust Ag) from AmTrust Financial Services, for an undisclosed price.
Image: AmTrust Ag to be acquired by ProAg. Photo: courtesy of rawpixel/Pixabay.
AmTrust Ag, which is headquartered in Leawood, Kansas, offers a range of crop insurance products that are said to complete the risk management portfolio of farmers.
The MGA forayed into the crop insurance sector in 2014 with a focus on offering risk management products, and risk advisory tools to farmers and agents.
In 2017, AmTrust Financial Services acquired crop insurance provider Ag Armour from the Triangle Insurance Companies, to consolidate AmTrust Ag’s business.
AmTrust Ag’s products cover the areas of multi-peril crop, crop hail, livestock and named peril crop insurance, and are underwritten by Technology Insurance, an approved insurance provider under the US federal crop insurance program.
Last year, the crop insurance MGA managed $103 million of gross premiums, as reported by National Crop Insurance Services (NCIS).
ProAg president and CEO Kendall Jones said: “ProAg believes AmTrust Ag provides a complementary platform to add business from a strong portfolio of independent agents, while improving our profitability and enhancing our diversified portfolio through strategic partnerships.
“This acquisition shows TMHCC’s and ProAg’s continued commitment to the U.S. crop insurance space. We are pleased to welcome AmTrust Ag’s employees and independent agents to ProAg.
“Together with AmTrust Ag, we will work through the details over the coming weeks to provide a seamless transition for policyholders, agents and employees.”
ProAg, which is a member of the Tokio Marine HCC group of companies, is headquartered in Amarillo, Texas. The company writes multi-peril crop, crop hail, livestock and named peril crop insurance.
The insurance firm has eight offices in the US and has a workforce of nearly 400 people to support crop insurance operations across 49 states.
In 2017, the company acquired International Ag Insurance Solutions, a crop MGA, which manages crop hail, multi-peril crop, and named peril crop insurance.
In 2014, ProAg was acquired by HCC Insurance for $110m from CUNA Mutual Group. A year later, HCC Insurance merged with Tokio Marine and the subsequently enlarged company has been operating as Tokio Marine HCC.