Zurich expands in US with crop firm acquisition
Swiss-based global insurer Zurich is expanding its US operations by acquiring Rural Community Insurance Services (RCIS) from Wells Fargo. The deal is for 100 per cent of Rural Community Insurance Agency and its subsidiary Rural Community Insurance Company.
“Zurich has been a part of American business for more than 100 years, and that means we understand the importance of farmers and the agriculture industry to the American economy,” said Mike Foley, CEO North America Commercial and regional chairman of North America at Zurich. “This acquisition adds an exciting new chapter to our long history in the U.S. and illustrates how financial discipline allows us to capitalize on market opportunities that meet our strategic objectives.”
Zurich and RCIS have been working together since 1992 and Zurich currently holds 25 per cent of RCIS’ retained premiums through a quota share contract. Zurich will pay Wells Fargo approximately $675 million plus the amount of excess capital in RCIS at the date of closing, estimated to be up to $375 million.
Insured losses from global catastrophes lower in 2015
Global catastrophes from natural and man-made disasters had an economic impact of $85 billion in 2015 according to an initial sigma estimate from
Swiss Re. However insured losses are expected to be $32 billion, lower than 2014’s $32 billion. There was a drop in insured losses from natural disasters (down to $23 billion from $28 billion in 2014) but an increase in man-made disasters (up to $9 billion from $7 billion in 2014.)
A February winter storm in the US was the largest loss-making natural disaster of the year, resulting in insured losses of more than USD 2 billion. Low activity during the North Atlantic hurricane season kept the total global insured loss low. The costliest man-made event this year was the series of explosions at a storage facility in the Port of Tianjin in northeastern China on 12 August.
Arthur J Gallagher acquires Australian insurer
International insurance brokerage Arthurs J Gallagher & Co has acquired Strathearn Insurance Group, headquarted in Perth, Australia. The Illinois-based firm has been expanding its Australian operations in recent months and says that the culture of Strathearn in a good fit for them. No details of the transaction have been disclosed.
