Aspen Insurance Holdings snatched up AgriLogic Insurance Services, a Kansas-based crop insurer and agriculture consultant, bring more changes to a sector that has already seen a spike in buying and selling.
Financial terms were not disclosed.
Crop insurance has experienced some major market buying and selling in recent months. In December, Cargill Inc. said it would sell its crop insurance unit to Silveus Insurance Group for an undisclosed amount and Zurich Insurance Group agreed to buy a Wells Fargo & Co. crop insurance business for as much as $1.05 billion. Last August, OneBeacon Insurance Group exited the crop insurance business when it sold its managing general agency – Climate Crop Insurance Agency – to AmTrust Financial Services.
AgriLogic was previously the crop insurance division of Occidental Fire and Casualty of North Carolina, according to the company’s web site. In making the acquisition, Aspen, a Bermuda-based insurer and reinsurer, gains a more diverse specialty insurance business.
As well, both companies have worked together for some time. Aspen CEO Chris O’Kane said that Aspen has provided reinsurance support for another years.
“AgriLogic has an excellent reputation,” O’Kane said in prepared remarks. He added that the company “is a great business with strong prospects and is an excellent fit for Aspen, both strategically and culturally.”
AgriLogic, a specialty insurer focused on the U.S. crop business, also has an agricultural consultancy that offers risk management services for U.S. and international agriculture businesses. It booked approximately $185 million in gross written premiums in 2015. New owner Aspen plans to keep AgriLogic President and CEO Joe Davis in his existing role, reporting to Aspen Re Chairman Brian Boornazian. As well, AgriLogic will become part of Aspen’s reinsurance operations, with Michael Dicker, group head of Agriculture, leading the division.
*Material from Insurance Journal was used for this report.