Producers Ag Insurance Group Inc. (ProAg), a member of the Tokio Marine HCC (TMHCC) group of companies, announced that a purchase agreement had been signed to acquire crop managing general agent (MGA) International Ag Insurance Solutions LLC (International Ag). The transaction -- which is subject to a number of closing conditions, including final approvals by certain International Ag members and regulatory authorities -- is expected to close by April 3, 2017.
Headquartered in West Des Moines, Iowa, International Ag manages multi-peril crop, crop hail and named peril crop insurance. In 2016, the company managed gross premiums of $67.4 million, as reported by National Crop Insurance Services.
"ProAg believes International Ag provides a complementary platform to add business from a strong group of independent agents while improving our profitability and enhancing our diversified portfolio. This acquisition shows TMHCC's continued commitment to the U.S. crop insurance space. We are pleased to welcome International Ag's management team, employees and independent agents to ProAg," said Michael Connealy, ProAg president and chief executive officer.
"International Ag is excited about the opportunity to join the financially strong and geographically diverse agricultural risk management program of ProAg. Under the guidance and support of ProAg, we will be able to expand our product offerings and elevate the superior service our customers have come to expect," International Ag CEO Rob Boysen said.
"Together with International Ag, we will work through the details to provide a seamless transition for policyholders, agents and employees over the coming months," said Kendall Jones, ProAg executive vice president and chief operating officer.
ProAg has a financial strength rating of "A++ (Superior)" from A.M. Best Co. Inc. The company is positioned as a financially strong and well-capitalized crop insurer with more than 90 years of experience in protecting the American farmer. ProAg writes multi-peril crop, crop hail, named peril crop and livestock insurance. Its headquarters are in Amarillo, Texas, and it has seven offices spread across the U.S. ProAg employs approximately 400 people supporting crop insurance operations in 41 states. For more information about ProAg, visit www.ProAg.com.
TMHCC is the marketing name used to describe the affiliated companies under the common ownership of HCC Insurance Holdings Inc., a Delaware-incorporated insurance holding company. Headquartered in Houston, Texas, TMHCC is a leading specialty insurance group with offices in the U.S., the U.K., Spain and Ireland. Its major domestic insurance companies have financial strength ratings of "AA- (Very Strong)" from Standard & Poor's Financial Services LLC, "A++ (Superior)" from A.M. Best Co. and "AA- (Very Strong)" from Fitch Ratings; its major international insurance companies have financial strength ratings of "AA- (Very Strong)" from Standard & Poor's Financial Services. TMHCC is a member of the Tokio Marine Group, a premier global company founded in 1879 with a market capitalization of $31 billion as of Dec. 31, 2016.