Specialty insurer Aspen Insurance has acquired AgriLogic Insurance Services and certain affiliates for cash in a transaction that further diversifies Aspens’s specialty insurance business.
AgriLogic, headquartered in Overland, Kansas, is a specialist U.S. crop insurer and agricultural consultant that reported estimated gross written premiums of $185 million in 2015.
Terms of the deal were not disclosed.
The company was founded as a consulting firm and leverages its technical capability and industry knowledge to provide its crop and agricultural insurance agents with customized risk management services for U.S. and international agricultural businesses.
AgriLogic President and CEO Joe Davis will continue in his role, reporting to Brian Boornazian, chairman, Aspen Re and AgriLogic will form part of Aspen’s existing reinsurance operations, led by Michael Dicker, group head of Agriculture.
“The development of a U.S. agriculture insurance platform is an excellent diversification for us, offering attractive return potential with modest incremental capital requirements, which is consistent with our strategy of enhancing returns to our shareholders,” said Chris O’Kane, Aspen Group CEO.
Aspen’s move follows other recent deals in the crop insurance space.
In December, Cargill Inc. agreed to sell its crop insurance unit to Silveus Insurance Group for an undisclosed amount and Zurich Insurance Group agreed to buy a Wells Fargo & Co. crop insurance business for as much as $1.05 billion. Last August, OneBeacon Insurance Group exited the crop insurance business when it sold its managing general agency – Climate Crop Insurance Agency – to AmTrust Financial Services.