Houston-based specialty insurer HCC Insurance Holdings Inc. said Tuesday that it has reached a definitive agreement to acquire Producers Ag Insurance Group Inc. from CUNA Mutual Group for approximately $110 million in cash.
Amarillo, Texas-based ProAg writes multiperil crop, crop hail, named peril and livestock insurance in 41 states.
HCC CEO Christopher J.B. Williams said the acquisition of ProAg will help the company diversify and provide solid growth potential.
“Crop insurance is a noncorrelated line of business we strategically targeted to add to HCC’s diversified portfolio of specialty insurance businesses,” Mr. Williams said in a statement, noting that ProAg’s current management team and approximately 500 employees will continue to operate the business.
“ProAg is excited about the opportunity to continue building our crop insurance franchise under HCC’s ownership,” ProAg President and CEO Michael E. Connealy said in the statement.
The deal, which is subject to regulatory approvals, is expected to close in the first quarter of 2015.
Catastrophe risk modeling firm AIR Worldwide has updated its severe thunderstorm model and released a crop hail model for the U.S.