OneBeacon Insurance Group is getting out of the crop insurance business.

bigstock-Corn-field-42066553-ethanol-biofuelThe Bermuda-domiciled insurance holding company made it official with the sale of its exclusive managing general agency – Climate Crop Insurance Agency – to AmTrust Financial Services. As part of that transaction, OneBeacon said it has transferred its existing crop insurance business to AmTrust, including policyholder servicing.

OneBeacon President and CEO Mike Miller said the insurer has also withdrawn its plan of operations for crop insurance with the U.S. Department of Agriculture’s Risk Management Agency for the 2016 crop year.

“We are committed to ensuring a smooth transfer for both our policyholders and for the Climate crop insurance business team,” Miller said in prepared remarks.

Earlier this year, grain analysts said that crop insurance price guarantees for U.S. corn, soybeans and spring wheat in 2015 would drop 10 percent or more. That’s based on futures settlement prices for February.

Source: OneBeacon Insurance Group

Topics Agribusiness