American Financial Group (AFG) has completed the purchase of Crop Risk Services (CRS) from AIG.
Illinois-based, CRS is a primary crop insurance general agent and is the seventh largest provider of multi-peril crop insurance in the United States, based on 2022 premiums.
The purchase agreement was first announced in May 2023.
Under the terms of the transaction, AFG will pay AIG $240 million in cash at closing, subject to certain closing adjustments.
Carl H. Lindner III, Co-Chief Executive Officer of AFG, commented: “We are very pleased to welcome CRS and its approximately 450 employees to AFG’s Great American Insurance Group.
“This business is a great strategic fit with our existing crop insurance operations and will provide the opportunity to continue to benefit from economies of scale.”
American Financial Group’s Great American Insurance Group has been providing crop-hail coverage since 1915 and began writing multi-peril crop insurance in 1980 after Congress authorized the program.
Great American’s Crop Division generated gross written premiums of approximately $1.8 billion in 2022 and is the fifth largest provider of multi-peril crop insurance in the United States.
Following the transaction, Great American will remain the #5 ranked writer of U.S. crop insurance and the largest U.S.-owned participant in the United States multi-peril crop insurance program.
Peter Zaffino, Chairman and Chief Executive Officer of AIG said: “AIG acquired CRS as part of its acquisition of Validus Holdings, Ltd. Since that time, CRS has grown substantially under the leadership of a talented and experienced management team.
“AFG will be an excellent partner for CRS and the business will benefit from the scale this transaction provides.”
Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel for AFG. Evercore Group L.L.C. and Sidley Austin LLP acted as financial advisor and legal counsel, respectively, for AIG.
