Deere to sell crop insurance business to Farmers Mutual Hail
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Deere & Co. said Thursday it has reached a definitive agreement to sell its crop insurance business to West Des Moines, Iowa-based Farmers Mutual Hail Insurance Co. of Iowa.
Terms of the agreement, which is subject to regulatory approval, were not disclosed.
Moline, Illinois-based Deere is selling both its John Deere Insurance Co. and John Deere Risk Protection Inc. operating entities, which together make up its Johnston, Iowa-based John Deere Crop Insurance unit. Closing is expected in the first quarter of 2015.
Deere, which operates in 39 states, has an estimated $432 million in 2014 gross written premiums in crop insurance, while Farmers Mutual, which operates in 15 states, has an estimated $532 million, according to Farmers Mutual.
Deere announced a review of strategic options for its crop insurance business in September.
Deere said in its announcement it has been involved in the crop insurance business for nine years, during which time John Deere Insurance Co. become a top 10 provider of crop insurance.
Farmers Mutual Hail Insurance provides reinsurance, crop insurance and property/casualty insurance that supports county mutual insurance companies and agricultural producers, according to its website. It entered the multiperil crop insurance market in 1998.
“I am very excited at the potential the combination of FMH and John Deere crop insurance creates,” FMH Chairman, President and CEO Ron Rutledge said in a statement. “In addition to the advantages that greater scale and diversity bring, our similar company cultures focused around taking care of the customer means all of our policyholders will continue to enjoy the high level of service they’ve come to expect.”
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