Aspen Insurance Holdings Limited has entered into a new strategic partnership with CGB Diversified Services, Inc. (CBG DS), under which Aspen has acquired a 23.2% stake in newly established firm, Crop Re Services LLC (Crop Re).
Crop Re is responsible for directing the reinsurance placement on behalf of CGB DS, and after Aspen acquires its 23.2% stake in the firm, CGB DS will own the remaining 76.8% of Crop Re.
In exchange for its 23.2% stake in Crop Re, Aspen has sold its U.S. crop insurance business, AG Logic Holdings, LLC (AgriLogic) to CGB DS, for a reported $68.4 million.
Under the new strategic partnership, insurer and reinsurer Aspen will receive the rights to provide quota share reinsurance capacity on the combined crop insurance portfolios of AgriLogic and CGB DS, in proportion to its 23.2% stake in Crop Re.
Furthermore, Aspen will also benefit from additional crop reinsurance premium by bringing its reinsurance knowledge and expertise to a larger and more diversified crop insurance operation.
Aspen’s Group Chief Executive Officer (CEO), Chris O’Kane, said; “We are excited by the strategically compelling opportunity brought to us by CGB DS, a highly-respected company in the crop insurance industry. Our investment in Crop Re provides Aspen with the opportunity for further growth through access to a much larger and more diversified portfolio of business. AgriLogic is an outstanding business and, together with CGB DS, will be able to progress more rapidly to the next stage of its development.”
Rick Pemberton, Executive Vice President (EVP) and Chief Financial Officer (CFO) for CGB Enterprises, Inc., added; “Forming this strategic partnership with Aspen is a natural fit for our crop insurance platform and a true win for both parties. AgriLogic is an excellent business with strong customer-centric focus, and together we will continue to provide world-class service and provide innovative risk management solutions to our agents and customers. We are delighted to officially welcome the AgriLogic team to CGB Diversified Services.”