Aspen reveals crop reinsurance deal
Bermuda-based Aspen Insurance has entered a strategic partnership with CGB Diversified Services (CGB DS) where Aspen will be acquiring a 23.2 percent stake in a newly formed company, Crop Re Services.
Crop Re is responsible for directing the placement of reinsurance on behalf of CGB DS. The remaining 76.8 percent of Crop Re is owned by CGB DS.
In exchange for its stake in Crop Re, Aspen has sold AG Logic Holdings (AgriLogic), its US crop insurance business, to CGB DS for $68.4 million.
Aspen will receive rights to provide quota share reinsurance capacity, in proportion to its shareholding of Crop Re, on the combined crop insurance portfolios of AgriLogic and CGB DS.
Aspen will also have access to additional crop reinsurance premium by bringing its reinsurance expertise to a substantially larger, faster growing, and more diversified crop insurance business.
The annual combined gross written premium of AgriLogic and CGB DS was approximately $1.1 billion for the 2017 crop reinsurance year, making it one of the largest portfolios in the US crop insurance market.
Aspen CEO Chris O’Kane, said: “Our investment in Crop Re provides Aspen with the opportunity for further growth through access to a much larger and more diversified portfolio of business. AgriLogic is an outstanding business and, together with CGB DS, will be able to progress more rapidly to the next stage of its development.”
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