Everest Re Group Announces Strategic Alliance with CGB Diversified Services And the Related Sale of its Crop Insurance Compan...
July 25 2016 - 4:15PM
Business Wire
Everest Re Group, Ltd. announced today that it has signed a
Letter of Intent (LOI) for the sale of its U.S. crop insurance
company, Heartland Crop Insurance, Inc., to CGB Diversified
Services, Inc. (CGB DS).
Upon completion of the sale, Everest will enter into a strategic
long term reinsurance relationship with CGB DS, to provide quota
share reinsurance capacity on the combined crop insurance portfolio
of the Diversified/Heartland companies. CGB Diversified Services,
Inc. is one of the fastest growing crop insurance companies in the
U.S., offering its crop insurance products and services to farmers
across 38 states. With the acquisition of Heartland, CGB DS will
grow its footprint and product set along with significantly
increasing its market share in a number of key states.
This transaction is contingent upon all customary closing
provisions, including the finalization of the Stock Purchase
Agreement, and all required regulatory and Board approvals.
John Doucette, President and CEO of the Everest’s Reinsurance
Operation, commented, “We are excited to enter this strategic
reinsurance partnership with CGB DS. They are a well-respected crop
insurance operation in the U.S. with strong market penetration.
This alliance provides Everest access to a much broader, more
diversified, crop insurance portfolio.”
Dom Addesso, President and CEO of Everest Re Group, further
commented, “CGB DS presented us with a compelling strategic option.
The opportunity to grow and diversify in the crop insurance
business at a much more rapid pace and with economies of scale is
an extremely attractive alternative.”
“CGB Diversified Services could not be more pleased to welcome
the Heartland family of employees, its agents and customers to
CGB,” said Ron Miiller, President. “We look forward to collectively
accomplishing many of the goals we share together. Our combined
strength will make us a significant force in our industry in the
years ahead.”
Everest Re Group, Ltd. is a Bermuda holding company that
operates through the following subsidiaries: Everest Reinsurance
Company provides reinsurance to property and casualty insurers in
both the U.S. and international markets. Everest Reinsurance
(Bermuda), Ltd., including through its branch in the United
Kingdom, provides reinsurance and insurance to worldwide property
and casualty markets and reinsurance to life insurers. Everest
Reinsurance Company (Ireland), Limited provides reinsurance to
non-life insurers in Europe. Everest National Insurance Company and
Everest Security Insurance Company provide property and casualty
insurance to policyholders in the U.S. Everest Indemnity Insurance
Company offers excess and surplus lines insurance in the U.S.
Everest Insurance Company of Canada provides property and casualty
insurance to policyholders in Canada. The Company also operates
within the Lloyd's insurance market through Syndicate 2786. In
addition, through Mt. Logan Re, Ltd., the Company manages
segregated accounts, capitalized by the Company and third party
investors, that provide reinsurance for property catastrophe risks.
Additional information on Everest Re Group companies can be found
at the Group’s web site at www.everestregroup.com.
CGB Diversified Services, Inc. (CGB DS) is a wholly owned
subsidiary of CGB Enterprises, Inc. CGB DS is headquartered in
Jacksonville, Illinois and is part of the Federal Crop Insurance
system. CGB DS offers a wide range of services which includes crop
insurance, risk management, and grain marketing expertise.
CGB Enterprises, Inc., headquartered in Mandeville, LA, is a
diversified business with focus on the commodity and transportation
sectors. CGB operates nearly 100 grain facilities in the United
States. In addition, CGB has dedicated operations in stevedoring,
logistical services, barge – rail - truck transportation,
fertilizer, crop insurance, agri-finance, soybean processing,
producer risk management, and other related businesses. For more
information on CGB Enterprises, Inc., please visit www.cgb.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160725006266/en/
Everest Global Services, Inc.Elizabeth B. Farrell,
908-604-3169Vice President, Investor Relations
Everest Re (NYSE:RE)
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