AmTrust sells crop insurance MGA to Tokio Marine's ProAg

Specialty insurer Tokio Marine HCC's crop insurance unit Producers Ag Insurance Group (ProAg) has signed an agreement to acquire Leawood, Kansas-based crop insurance managing general agent (MGA) AmTrust Agriculture Insurance Services (AmTrust Ag).

AmTrust Ag, a subsidiary of AmTrust Financial Services, manages multi-peril crop, crop hail, livestock and named peril crop insurance. AmTrust Ag products are underwritten by Technology Insurance Company, an approved insurance provider under the Federal crop insurance programme.

In 2018, AmTrust Ag reported gross written premiums of $103 million, according to the National Crop Insurance Services (NCIS).

The transaction is expected to close by May 1, 2019, subject to regulatory approvals.

Since completing its go-private merger deal with Evergreen in November 2018, AmTrust has been selling off its businesses that do not fit with its new growth strategy of becoming a specialty commercial P&C insurer focused on local markets and niche products where it can differentiate its offering and bring added value.

AmTrust has recently sold its Lloyd’s business to specialty re/insurer Canopius, and its global  surety and credit reinsurance operations to Liberty Mutual Insurance.

Kendall Jones, ProAg’s president and chief executive officer, said: "We are pleased to welcome AmTrust Ag’s employees and independent agents to ProAg. Together with AmTrust Ag, we will work through the details over the coming weeks to provide a seamless transition for policyholders, agents and employees."

Jones added: “ProAg believes AmTrust Ag provides a complementary platform to add business from a strong portfolio of independent agents, while improving our profitability and enhancing our diversified portfolio through strategic partnerships. This acquisition shows TMHCC’s and ProAg’s continued commitment to the U.S. crop insurance space."

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