AmTrust Financial Services Acquires Crop Insurance Business of The Climate Corp.
Monsanto’s The Climate Corporation sold its crop insurance business (CCCIB) to AmTrust North America, a subsidiary of AmTrust Financial Services, Inc. Through the sale, AmTrust gains exclusive access to certain technologies of The Climate Corporation that can be applied in the crop insurance industry for up to three years.
“While we’re very pleased with the performance of our crop insurance business, the sale of CCCIB will enable us to focus exclusively on our digital agriculture platform,” says Mike Stern, The Climate Corporation president and chief operating officer. “We believe digital agriculture has significant potential to help farmers make key agronomic decisions that can improve the efficiency and productivity of their operations.”
Barry Zyskind, AmTrust Financial Services, Inc. president and CEO, says that “CCCIB’s market knowledge, industry expertise and relationships provide an excellent platform for AmTrust to continue to expand in an insurance market niche that offers diversity of risks while also growing our service and fee revenue.”
Zyskind says he looks forward to welcoming the CCCIB employees that will contribute to AmTrust’s future success in the crop insurance market.
The Climate Corporation and AmTrust, along with CCCIB’s carrier, OneBeacon Insurance Group, are working together to achieve a smooth transition for CCCIB’s customers
OneBeacon President and CEO Mike Miller, said “We are committed to ensuring a smooth transfer for both our policyholders and for the CCCIB team. We have terminated our relationship with The Climate Corporation and have withdrawn our Plan of Operations with the U.S. Department of Agriculture’s Risk Management Agency for the 2016 crop year.”
Additional details of the agreement were not disclosed.