Validus Holdings Completes Acquisition of Archer Daniels Midland Crop Risk Services Business
May 01 2017 - 1:45PM
Business Wire
Validus Holdings, Ltd. (“Validus” or the “Company”) (NYSE: VR)
announced today that it has completed its acquisition of Archer
Daniels Midland Company’s (“ADM”) (NYSE:ADM) Crop Risk Services
business (“CRS”).
CRS is a primary crop insurance managing general agent based in
Decatur, Illinois with $555.0 million gross premiums written in
2016 and 1,170 agents across 36 states.
Validus’ Chairman and Chief Executive Officer Ed Noonan stated,
“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.”
Joe Taets, President of ADM’s Agricultural Services Business
Unit, stated, “We’re pleased to complete a transaction that
advances our strategy by allowing ADM to partner with Validus to
continue to offer CRS customers a full array of grain marketing
products and services. 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.”
Under the terms of the transaction, ADM received $127.5 million
in cash, subject to certain working capital and balance sheet
adjustments, in exchange for 100% of the outstanding stock of CRS.
The transaction includes a marketing services agreement under which
ADM and Validus will continue to work together to offer a full
range of insurance and farm products and services to CRS customers.
CRS will operate as part of the Western World Insurance Group.
About Validus Holdings,
Ltd.
Validus Holdings, Ltd. ("Validus") is a holding company for
reinsurance and insurance operating companies and investment
advisors including Validus Reinsurance, Ltd. (“Validus Re”), Talbot
Underwriting Ltd. (“Talbot”), Western World Insurance Group, Inc.
(“Western World”) and AlphaCat Managers, Ltd. (“AlphaCat”).
Validus Re is a global reinsurance group focused primarily on
treaty reinsurance. Talbot is a specialty insurance group primarily
operating within the Lloyd's insurance market through Syndicate
1183. Western World is a U.S. specialty lines insurance group
focused on excess and surplus lines. AlphaCat is a Bermuda based
investment adviser managing capital for third parties and Validus
in insurance linked securities and other property catastrophe and
specialty reinsurance investments.
About Crop Risk Services
Crop Risk Services (“CRS”) is a primary crop insurance managing
general agent based in Decatur, Illinois. CRS was established in
1982 as ASI AgriServe Inc. In 2010, ADM acquired 100 percent of the
shares of ASI, and the company became ADM Crop Risk Services.
CRS aims to provide farmers with affordable crop income
protection, superior service and utmost integrity.
Cautionary Note Regarding
Forward-Looking Statements
This press release may include forward-looking statements, both
with respect to the Company and its industry, that reflect our
current views with respect to future events and financial
performance. Statements that include the words "expect", "intend",
"plan", "believe", "project", "anticipate", "will", "may" and
similar statements of a future or forward-looking nature identify
forward-looking statements. All forward-looking statements address
matters that involve risks and uncertainties, many of which are
beyond the Company's control. Accordingly, there are or will be
important factors that could cause actual results to differ
materially from those indicated in such statements and, therefore,
you should not place undue reliance on any such statements. We
believe that these factors include, but are not limited to, the
following: 1) unpredictability and severity of catastrophic events;
2) rating agency actions; 3) adequacy of Validus' risk management
and loss limitation methods; 4) cyclicality of demand and pricing
in the insurance and reinsurance markets; 5) statutory or
regulatory developments including tax policy, reinsurance and other
regulatory matters; 6) Validus' ability to implement its business
strategy during "soft" as well as "hard" markets; 7) adequacy of
Validus' loss reserves; 8) continued availability of capital and
financing; 9) retention of key personnel; 10) competition; 11)
potential loss of business from one or more major insurance or
reinsurance brokers; 12) Validus' ability to implement,
successfully and on a timely basis, complex infrastructure,
distribution capabilities, systems, procedures and internal
controls, and to develop accurate actuarial data to support the
business and regulatory and reporting requirements; 13) general
economic and market conditions (including inflation, volatility in
the credit and capital markets, interest rates and foreign currency
exchange rates); 14) the integration of businesses Validus may
acquire or new business ventures Validus may start; 15) the effect
on Validus' investment portfolios of changing financial market
conditions including inflation, interest rates, liquidity and other
factors; 16) acts of terrorism or outbreak of war; and 17)
availability of reinsurance and retrocessional coverage, as well as
management's response to any of the aforementioned factors.
The foregoing review of important factors should not be
construed as exhaustive and should be read in conjunction with the
other cautionary statements that are included herein and elsewhere,
including the risk factors included in Validus' most recent reports
on Form 10-K and Form 10-Q and other documents of the Company on
file with or furnished to the U.S. Securities and Exchange
Commission (“SEC”). Any forward-looking statements made in this
press release are qualified by these cautionary statements, and
there can be no assurance that the actual results or developments
anticipated by Validus will be realized or, even if substantially
realized, that they will have the expected consequences to, or
effects on, Validus or its business or operations. Except as
required by law, the Company undertakes no obligation to update
publicly or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise.
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Investors:Validus Holdings,
Ltd.Investor.Relations@ValidusHoldings.com+1-441-278-9000OrMedia:Brunswick
GroupCharlotte Connerton / Mustafa Riffat+1-212-333-3810
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