7 September 2020News

Sompo set to acquire Diversified Crop Insurance Services

Sompo International Holdings will acquire Diversified Crop Insurance Services, a subsidiary of CGB Enterprises in a deal that brings together companies with combined gross written premiums of over $2 billion for crop reinsurance in 2019.

The merged business will be one of the largest crop reinsurers in the world, Sompo said. Sompo International’s existing global AgriSompo platform already includes ARMtech, currently the sixth largest underwriter of US federally sponsored multi-peril crop insurance.

Chris Sparro, chief executive of US insurance will oversee the business. Sompo will begin planning the integration of ARMtech and Diversified immediately, in anticipation of the deal closing in Q4, following the receipt of all required regulatory approvals.

Chris Gallagher, chief executive of Sompo International commercial property and casualty, said the acquisition will help build AgriSompo into a multinational, broad-reaching and market leading crop re/insurance business. “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,” he said.

Sparro said Sompo was committed to expanding the scope and scale of its crop insurance business “in a meaningful and relevant way.”

Kris Lynn, chairman of AgriSompo and senior vice president of global agriculture at Sompo International, highlighted other acquisitions Sompo has made in the same industry, including A&A in Italy and MGA Atlas in Portugal. It has introduced new crop funding and yield products through its subsidiary in Brazil and partnered with SV SparkassenVersicherung in Germany on multi-peril crop protection covers. It also partnered 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,” said Lynn. “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.”




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22 April 2020   Sompo International Holdings has partnered with Portuguese managing general agent ATLAS Segurmina to offer crop insurance to the agricultural sector in Portugal via AgriSompo, Sompo’s global agriculture platform.

More on this story

News
22 April 2020   Sompo International Holdings has partnered with Portuguese managing general agent ATLAS Segurmina to offer crop insurance to the agricultural sector in Portugal via AgriSompo, Sompo’s global agriculture platform.