Aspen Insurance Holdings Limited (“Aspen”) (NYSE:AHL) announced
today a strategic partnership with CGB Diversified Services, Inc.
(“CGB DS”).
Under the terms of this partnership, Aspen has acquired a 23.2%
stake in a newly formed company, Crop Re Services LLC (“Crop Re”),
which is responsible for directing the placement of reinsurance on
behalf of CGB DS. The remaining 76.8% of Crop Re is owned by CGB
DS.
In exchange for its stake in Crop Re, Aspen has sold AG Logic
Holdings, LLC (“AgriLogic”), its U.S. crop insurance business, to
CGB DS for $68.4 million.
Aspen will receive rights to provide quota share reinsurance
capacity, in proportion to its shareholding of Crop Re, on the
combined crop insurance portfolios of AgriLogic and CGB DS.
Aspen will also have access to additional crop reinsurance
premium by bringing its reinsurance expertise to a substantially
larger, faster growing, and more diversified crop insurance
business.
The annual combined gross written premium of AgriLogic and CGB
DS was approximately $1.1 billion for the 2017 crop reinsurance
year, making it one of the largest portfolios in the U.S. crop
insurance market.
Chris O’Kane, Aspen’s Group Chief Executive Officer, 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 and Chief Financial
Officer for CGB Enterprises, Inc. said: “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.”
About Aspen Insurance Holdings LimitedAspen provides
reinsurance and insurance coverage to clients in various domestic
and global markets through wholly-owned subsidiaries and offices in
Australia, Bermuda, Canada, France, Germany, Ireland, Singapore,
Switzerland, the United Arab Emirates, the United Kingdom and the
United States. For the year ended December 31, 2016, Aspen reported
$12.1 billion in total assets, $5.3 billion in gross reserves, $3.6
billion in total shareholders’ equity and $3.1 billion in gross
written premiums. Its operating subsidiaries have been assigned a
rating of “A” by Standard & Poor’s Financial Services LLC
(“S&P”), an “A” (“Excellent”) by A.M. Best Company Inc. (“A.M.
Best”) and an “A2” by Moody’s Investors Service, Inc.
(“Moody’s”).
About CGB Diversified Services, Inc.CGB Diversified
Services is a wholly owned subsidiary of CGB Enterprises, Inc. and
is headquartered in Jacksonville, Illinois. The company is a part
of the Federal Crop Insurance system and services policies in 48
states. CGB DS offers a wide range of services which includes crop
insurance, risk management, and grain marketing expertise, and is
an equal opportunity provider. Learn more
www.diversifiedservices.com
About CGB Enterprises, Inc.In addition to its crop
insurance business, CGB Enterprises, Inc., headquartered in
Mandeville, LA, has nearly 100 grain facilities across the Midwest
and has dedicated operations in logistics and transportation,
fertilizer, agri-finance, soybean processing and other related
businesses. For more information on CGB Enterprises, Inc, please
visit www.cgb.com.
Application of the Safe Harbor of the Private Securities
Litigation Reform Act of 1995This press release may contain
written “forward-looking statements” within the meaning of the U.S.
federal securities laws. These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include all statements that
do not relate solely to historical or current facts and can be
identified by the use of words such as “expect,” “intend,” “plan,”
“believe,” “do not believe,” “project,” “anticipate,” “seek,”
“will,” “estimate,” “may,” “likely,” “continue,” “assume,”
“objective,” “aim,” “guidance,” “outlook,” “trends,” “future,”
“could,” “would,” “should,” “target,” “on track” and similar
expressions of a future or forward-looking nature.
All forward-looking statements rely on a number of assumptions,
estimates and data concerning future results and events and are
subject to a number of uncertainties and other factors, many of
which are outside Aspen’s control that could cause actual results
to differ materially from such statements, including, among other
things, factors outside Aspen’s control impacting expectations
around growth in underlying crop insurance, changes to the U.S.
Federal Multi-Peril Crop Insurance Program, the amount of
reinsurance premium available to be ceded to Aspen, the risk that
the counterparties do not perform as expected under contracts
directing the volume and terms of crop reinsurance placements and
the underlying agricultural commodity prices. For a detailed
description of uncertainties and other factors that could impact
the forward-looking statements in this press release, please see
the “Risk Factors” section in Aspen’s Annual Report on Form 10-K
for the year ended December 31, 2016 and Quarterly Reports on Form
10-Q for the quarters ended March 31, 2017, June 30, 2017 and
September 30, 2017, each as filed with the U.S. Securities and
Exchange Commission. Aspen undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.
For further information:
Please visit www.aspen.co.
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version on businesswire.com: http://www.businesswire.com/news/home/20171219005650/en/
AspenInvestorsMark Jones, +1 646-289-4945Senior Vice
President, Investor
Relationsmark.p.jones@aspen.coorMediaSteve Colton, +44 20
7184 8337Head of Group CommunicationsSteve.colton@aspen.co
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