Zurich American Insurance (ZAIC) has completed the acquisition of Rural Community Insurance Services (RCIS) from Wells Fargo & Company, for around $1.05bn.
The deal was first announced by both firms in last year. RCIS will now run as a stand-alone unit within Zurich North America Commercial’s programs and direct Markets (P&DM) business unit.
Under the deal, Zurich has paid around $700m for Wells Fargo, as well as excess capital that is expected to be around $375m.
The acquired business allows Zurich to expand its commercial insurance products and services in North America. RCIS had generated around $1.9bn in gross written premiums in last year.
Zurich North America commercial CEO and North America regional chairman Mike Foley said: "As we have worked over the last few months to complete this acquisition, farmers in much of the United States have been preparing for the spring planting season.
"During this time, we’ve had an opportunity to meet the people that make up RCIS and are proud to welcome them to the Zurich team."
RCIS comprise of Rural Community Insurance Agency and its subsidiary Rural Community Insurance Company (RCIC).
RCIS offers federal crop insurance programs and private crop insurance products to its customers.
Member of the National Crop Insurance Services and the Crop Insurance and Reinsurance Bureau, RCIS carries out insurance services in all 50 US states with around 4,000 agents.
Through utilizing the services of around 3,800 agents, RCIS will also provide risk management services for around 130 varieties of crops on more than 90 million acres.
Image: Zurich acquired crop insurer Rural Community Insurance Services in US. Photo: courtesy of chrisroll / FreeDigitalPhotos.net.