Switzerland-based Zurich Insurance Group said that it has completed its previously announced $700 million acquisition of Anoka, Minn.-based crop insurer Rural Community Insurance Services, or RCIS.
Zurich entered into the agreement to buy RCIS from San Francisco-based financial services company Wells Fargo & Co. on Dec. 18.
Zurich said it has been in the $10 billion U.S. crop insurance business for more than 20 years. The acquistion of RCIS shifts its long-standing position from a reinsurer into a 100% owner of an Approved Insurance Provider through the Federal Crop Insurance Program, the company said.
RCIS will now operate as a stand-alone unit within Zurich North America Commercial's Programs & Direct Markets business unit, Zurich said.
The purchase of RCIS gives Zurich a 20% share of a highly regulated market guarding farmers against weather-related losses, Vontobel analyst Stefan Schuermann wrote in a note after the deal was announced. It will provide about $1.6 billion in net earned premiums by 2017, adding 3.5% to Zurich's top line, he wrote.
Have you Liked us on Facebook?
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 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.
