Based in Lenexa, Kansas, Diversified Crop Insurance is part of the Federal Crop Insurance system and services policies in 48 US states
Diversified Crop Insurance Services to be acquired by Sompo. (Credit: Free-Photos from Pixabay)
Sompo International has agreed to acquire Diversified Crop Insurance Services from CGB Enterprises in a move to become a major crop insurance provider in North America and also in the world.
Financial terms of the deal were not disclosed.
The Bermuda-based speciality provider of property and casualty (P&C) insurance and reinsurance said that the enlarged firm post-acquisition has gross written premiums of more than $2bn in 2019.
Brief details of Diversified Crop Insurance
Based in Lenexa, Kansas, Diversified Crop Insurance is part of the Federal Crop Insurance system and services policies in 48 US states. The company, which was founded in 1997, is engaged in serving customers for crop insurance and risk management.
In 2007, the company became a managing general agency and about seven years later became a policy-issuing company. In 2016 and 2017, the company acquired crop insurers Heartland and AgriLogic, respectively.
The Kansas-based crop insurance firm is expected to give additional capabilities to Sompo International in North America in terms of product, geographic reach, a vast distribution network, and a track record of meeting profitable growth across products.
Sompo International commercial P&C CEO Chris Gallagher said: “The acquisition of Diversified aligns with the strategic vision for our AgriSompo platform, which is to build a multinational, broad-reaching crop insurance and reinsurance business that is market leading.
“Diversified will add additional capabilities and scale to our ARMtech crop insurance business and together, we will provide a level of product, technology and service to our customers and distribution partners that is unprecedented in the industry.”
Sompo International’s existing global AgriSompo platform includes ARMtech, which is presently claimed to be the sixth-largest underwriter of US federally sponsored multi-peril crop insurance.
Sompo International US Insurance CEO Chris Sparro said: “Diversified is a great addition to Sompo International as we continue to expand the scope and scale of our crop insurance business in a meaningful and relevant way.
“We look forward to working with CGB and Diversified to ensure a seamless transition for both of our organizations.”
The deal, which is subject to the receipt of all the necessary regulatory approvals, is anticipated to be closed in the fourth quarter of this year.