Search
 

Deere to sell crop insurance unit to Farmers Mutual Hail

Deere & Co., the worlds largest manufacturer or agricultural machinery, agreed to sell its crop insurance segment to Farmers Mutual Hail Insurance Co. of Iowa, retreating from a business that suffered years of losses.

By Shruti Date Singh, Bloomberg | Updated on December 18, 2014
A John Deere tractor in action.
(Bloomberg) — Deere & Co., the world’s largest manufacturer or agricultural machinery, agreed to sell its crop insurance segment to Farmers Mutual Hail Insurance Co. of Iowa, retreating from a business that suffered years of losses.

The sale comprises John Deere Insurance Co. and John Deere Risk Protection, Moline, Illinois-based Deere said today in a statement. No terms were disclosed.

The West Des Moines, Iowa-based buyer, which was founded in 1893, is counting on more demand as farm production expands to meet the needs of a growing population. Companies including Wells Fargo & Co. and Ace Ltd. historically profited through the coverage, which is partly backed by U.S. taxpayers. Deere’s push into multiple peril crop insurance, or MPCI, was followed by record drought and a plunge of corn prices, which fueled higher- than-expected claims in 2012 and 2013.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.