Sompo adds Diversified to crop insurance business
Bermudian-based Sompo International Holdings Ltd will become one of the world’s largest crop insurers after agreeing to acquire Diversified Crop Insurance Services.
Diversified, a subsidiary of CGB Enterprises, will become part of the AgriSompo platform, whose businesses wrote gross premium of more than $2 billion in 2019.
The platform already includes ARMtech, the sixth largest underwriter of US, federally sponsored multi-peril crop insurance.
Chris Gallagher, chief executive officer, Sompo International Commercial P&C, said: “The acquisition of Diversified aligns with the strategic vision for our AgriSompo platform, which is to build a multinational, broad-reaching crop insurance and reinsurance business that is market leading.
“Diversified will add additional capabilities and scale to our ARMtech crop insurance business and together, we will provide a level of product, technology and service to our customers and distribution partners that is unprecedented in the industry.
“Under the leadership of Chris Sparro, CEO of US Insurance, ARMtech and Diversified will begin the integration planning process immediately. We anticipate the transaction to close in the fourth quarter, following the receipt of all required regulatory approvals.”
Kris Lynn, chairman of AgriSompo and senior vice-president, global agriculture, Sompo International, said: “Since the formation of AgriSompo in 2017, Sompo International has been adding agriculture insurance businesses and capabilities around the world, including the acquisition of A&A s.r.l. in Italy, partnering with the MGA Atlas in Portugal, introducing new crop funding and yield products through our subsidiary in Brazil, partnering with SV SparkassenVersicherung in Germany on multi-peril crop protection covers and partnering with CropTrak, a technology company that specialises in providing digitised solutions to improve traceability and sustainability across the global food supply chain.
“The acquisition of Diversified strongly complements these efforts and reinforces Sompo International’s leadership and commitment to the agriculture insurance market on a significant scale.”
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