Everest Re Group Ltd. has finalized the sale of its U.S. crop managing general agent, Heartland Crop Insurance Inc., to CGB Diversified Services, Inc. for $49 million.
In conjunction with the sale, Everest has entered into a strategic long term reinsurance relationship with CGB DS, to provide quota share reinsurance capacity on the combined crop insurance portfolio of the Diversified/Heartland companies.
CGB offers crop insurance products and services to farmers across 38 states. With the acquisition of Heartland, CGB will grow its footprint in a number of key states. CGB is headquartered in Jacksonville, Illinois. It offers crop insurance, risk management and grain marketing expertise.
The sale is yet another merger in the crop insurance field that is facing declining crop prices, uncertainty over government subsidies and concerns over extreme weather. Wells Fargo, Cargill and Monsanto have sold crop insurance businesses within the past year.
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