Validus Holdings has further diversified its lines of business with the completion of its Archer Daniels Midland Crop Risk Services (CRS) acquisition.
CRS is a primary crop insurance managing general agent (MGA) with $555 million gross premiums written in 2016 and 1,170 agents acting across 36 states.
Validus’ Chairman and Chief Executive Officer (CEO) Ed Noonan, said; “The acquisition of CRS is another important step in building our global specialty insurance business. Validus will benefit from CRS’s commitment to provide superior customer service to agents and farmers via their leading technology capabilities.
“We welcome CRS to Validus and look forward to working with ADM to continue offering a full range of crop insurance products, as well as ADM’s grain marketing services to our CRS customers.”
In the transaction Archer Daniels Midland (ADM) received $127.5 million, in exchange for 100% of CRS outstanding stock.
Validus bought 100% of CRS outstanding stock for $127.5 million; the transaction terms include a marketing services agreement where ADM and Validus offer a full range of insurance and farm products and services to CRS customers.
Joe Taets, President of ADM’s Agricultural Services Business Unit, commented that the transaction advances the firm’s strategy by “allowing ADM to partner with Validus to continue to offer CRS customers a full array of grain marketing products and services.”
He added, “We’d like to thank the CRS team for their service to ADM, and look forward to continuing to work with them and the rest of Validus.”