HCC EXPANDS INTO CROP INSURANCE US-BASED SPECIALTY INSURER

HCC Insurance Holdings has jumped into the crop insurance market through an agreement to acquire Producers Ag Insurance Group from CUNA Mutual Group for $110m in cash. The value of the deal could change at closing of there is a fluctuation in ProAg’s net worth. The transaction is expected to close during the first quarter of 2015, subject to regulatory approvals. HCC said that ProAg is one of the largest US crop insurers, having posted gross earned premiums of $633.4m in 2013. With around 500 employees in 41 states, Texas-based ProAg writes multi-peril crop, crop hail, named peril and livestock insurance. Last year, the company ranked sixth among US multi-peril crop insurers, with a 5% market share. “Crop insurance is a non-correlated line of business we strategically targeted to add to HCC’s diversified portfolio of specialty insurance businesses”, said HCC chief executive Christopher Williams. “We believe ProAg provides a solid platform to incrementally grow our profitability”. Texas-based HCC, with assets of $10.9bn, was advised on the deal by JP Morgan Securities.