USI buys agribusiness broker

USI Insurance Services L.L.C. on Tuesday said it has completed its acquisition of agribusiness broker CHS Insurance Services L.L.C.

Terms of the transaction were not disclosed.

CHS Insurance will transition to USI branding effective immediately, a USI spokeswoman said in an email.

CHS Insurance specializes in agribusiness, food processing, petroleum and agricultural cooperatives, USI said in a statement.

In its 2018 first-quarter earnings statement, CHS parent CHS Inc., a farmer-owned cooperative, said its “Corporate and Other” segment, primarily comprising the company’s wheat milling joint venture and its financing, hedging and insurance operations, generated pretax income of $5.3 million.

USI has an existing agricultural and food processing insurance business. This acquisition will be a substantial increase in that business segment and we will be working to integrate these teams together to be a premier provider for agribusiness clients across the country, the USI spokeswoman said in her email.

USI offered employment to all CHS Insurance employees as maintaining relationships between clients and employees is an important component of a successful transition, she said.

She added that, although USI does not have all the details yet on its real estate plans, the company does not anticipate that employees will need to relocate and expects CHS Insurance associates, now USI, will be located in close proximity to the CHS headquarters.

“CHS Insurance is recognized as a leader in agribusiness insurance, with a strong dedication to understanding clients’ risks and helping businesses grow,” Michael J. Sicard, chairman and CEO, USI, said in the statement.

In a separate statement Monday, USI said it had completed the acquisition of Key Insurance & Benefits Services Inc., formerly part of KeyBank.

Terms of the transaction were not disclosed.

Key Insurance & Benefits Services, Inc., headquartered in Buffalo, New York, has 350 employees in eight offices in upstate New York, Pennsylvania and Connecticut handling risk management and employee benefits business, the statement said.

USI’s  purchase of Key Insurance included personal insurance, commercial property/casualty, benefits consulting and administration, captive, TPA and, for New York clients, BusinessWorks, a workers compensation PPO, the USI spokeswoman said.

USI is the 10th-largest insurance brokerage in the world, according to Business Insurance’s latest ranking.