Everest Re Group has closed the sale of its U.S. crop insurance subsidiary, pocketing $49 million in the process.
Plans for CGB Diversified Services to buy Heartland Crop Insurance were first announced in late July.
Everest Re will still keep a role in the business, however. Plans call for the reinsurer to provide quota share reinsurance capacity on the combined crop insurance portfolio of Diversified/Heartland.
When the deal was first announced, John Doucette, president and CEO of the Everest reinsurance arm, noted that the agreement gives his company access “to a much broader, more diversified crop insurance portfolio.”
CGB DS, meanwhile has crop insurance products and services for farmers in 38 states. The company is growing quickly. At the time the deal was announced, CGB DS President Ron Miller said that the acquisition “will make us a significant force in our industry in the years ahead.”
Source: Everest Re, CGB DS