XL Group announced Wednesday that XL Reinsurance America Inc., a subsidiary of XL Group plc, has acquired Global Ag Insurance Services, a crop insurance provider based in the western United States.
The two companies initially partnered in 2011 to deliver crop insurance solutions to western specialty crop producers and growers through the USDA multi-peril crop insurance program.
As larger existing carriers dealt with adverse events in the Midwest in 2012 and again in 2013, Global Ag was well-positioned with western U.S. crop producers. As a result the company experienced strong growth throughout the region.
In a statement about the acquisition, John Welch, President and CEO of XL Reinsurance America Inc., said that bringing on board the Global Ag team “fully fits with XL’s strategy of adding high quality teams in attractive markets.
“We believe now is the time to accelerate growth by leveraging the strength of the XL platform and building upon the success of a regionally focused crop insurance model,” he said.
Jordan Roach, CEO of Global Ag said that a benefit of the deal will be the ability to drive continued growth by leveraging XL’s global platform, financial strength and proven track record in agricultural risk management.
Source: XL Group plc