Sompo International has acquired US insurer Diversified Crop Insurance Services (Diversified), in a move that will create one of the largest crop insurance providers in North America.
Diversified, a subsidiary of CGB Enterprises, will join Sompo’s existing global AgriSompo platform, which already includes ARMtech, currently the sixth largest underwriter of US, federally sponsored multi-peril crop insurance. The deal will see Sompo International’s annual global agri-business premiums rise to over £2 billion.
Chris Gallagher, CEO, 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 SVP, Global Agriculture, Sompo International, added: “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.” Specifically, Diversified provides Sompo International with additional capabilities in North America in terms of product, geographic spread, an extensive distribution network, an excellent reputation for customer service and a proven track record of achieving profitable growth across products.”
Chris Sparro, CEO, U.S. Insurance, 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 organizations. 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.”