Sompo International buys Diversified to create leading crop insurer
Bermuda-based property and casualty re/insurer Sompo International is set to become one of the largest crop insurance providers in North America and the world with the acquisition of US-based Diversified Crop Insurance Services. Diversified, a subsidiary of CGB Enterprises, adds to Sompo International’s existing global AgriSompo platform, which already includes ARMtech, a federally sponsored multi-peril crop insurance. Diversified will provide Sompo with...
...additional capabilities in North America in terms of product, geographic spread, and an extensive distribution network.
The transaction will create one of the largest crop insurance providers in North America and the world with combined gross written premiums of over $2 billion in 2019, according to Sompo. It is expected to close in the fourth quarter, following the receipt of all required regulatory approvals.
“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," said Chris Gallagher, CEO of Sompo International commercial P&C. "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 U.S. Insurance, ARMtech and Diversified will begin the integration planning process immediately.”
Sparro added: “Diversified is a great addition to Sompo International as we continue to expand the scope and scale of our crop insurance business in a meaningful and relevant way. We look forward to working with CGB and Diversified to ensure a seamless transition for both of our organisations. I am excited that we are continuing to build out our global franchise in the crop insurance segment and am looking forward to delivering the unparalleled service, product and technology to our clients and distribution partners that a combination of ARMtech and Diversified will be able to offer.”
Kris Lynn, chairman of AgriSompo and SVP, global agriculture, Sompo International, commented: “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 specializes in providing digitized 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.”
