Insurer ACE will pay $1.1 billion to acquire the outstanding common stock of Iowa-based Rain and Hail Insurance Service Inc., the second-largest crop insurance underwriter in the U.S. and Canada.
ACE already owns roughly 20 percent of Rain and Hail’s stock. Upon completion of the deal, Rain and Hail will operate as a separate and distinct franchise within ACE Westchester.
ACE Chairman and CEO Evan G. Greenberg said the transaction “is a natural extension of our long-term, valued relationship with Rain and Hail and our company’s specialty lines focus. “The addition of Rain and Hail to the ACE Group is financially attractive to our shareholders.”
The transaction is subject to regulator and shareholder approval and is expected to be completed by the end of 2010.
Source: Ace. Ltd
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