Insurance company Aspen Group has acquired US agriculture insurance and consultancy company AgriLogic for an undisclosed sum.
AgriLogic was the crop insurance division of Occidental Fire and Casualty Company, a subsidiary of the privately held insurance company IAT group. The company held estimated gross written premiums of $185 million in 2015 according to a release announcing the deal.
Aspen said in a statement it intended to diversify its portfolio of speciality insurers was a primary factor in the acquisition.
“AgriLogic has an excellent reputation, which reflects the intellectual capital, technical and risk management expertise within the company, supported by robust infrastructure. Like Aspen, it is also a best in class underwriting company. We know the company and its management well, having provided reinsurance support to the business over a number of years,” said Chris O’Kane, Aspen Group chief executive.
AgriLogic’s chief executive Joe Davis will remain in place, reporting to Aspen chairman Brian Boornazian.
AgriLogic was formed as an agriculture consultancy in 1994 before entering the crop insurance space with Occidental in 2010. The company’s affiliate, AgriLogic Consulting, continues to provide strategic planning and management support in the agriculture sector and was included in the sale.
Aspen Group has offices and subsidiaries in Australia, Bermuda, France, Germany, Ireland, Singapore, Switzerland and the United Kingdom. The New York Stock Exchange-listed company reported $10.7 billion in total assets and $2.9 billion in gross written premiums in 2014.
“The development of a US 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 O’Kane.
Representatives from previous owners IAT did not respond to requests for comment from Agri Investor by press time.