Palomar Holdings, Inc. has entered into a definitive agreement to acquire Advanced AgProtection (AAP), a Texas-based managing general agent (MGA) focused on crop insurance.
The transaction follows Palomar’s initial strategic investment in AAP in 2023, when the two companies began a formal partnership. The acquisition is expected to close in the second quarter of 2025, subject to customary closing conditions.
AAP’s team will join Palomar as part of the acquisition.
AAP specializes in crop insurance and is led by a team with experience in the sector and established relationships across the industry. The company operates as an MGA, delivering underwriting and distribution services for crop insurance products.
Jon Christianson (pictured above), president of Palomar, said the platform will support continued expansion of Palomar’s crop insurance business.
Palomar’s expansion into the crop segment follows growth trends and projections within the market. In 2024, farmers and ranchers invested over $6 billion to purchase approximately 2.4 million crop insurance policies, providing $159 billion in protection against weather and market losses. This coverage spanned over 543 million acres, representing nine out of 10 eligible acres nationwide.
While total indemnity payments for 2024 are still being finalized by the US Department of Agriculture, they have already reached $12.8 billion. Notably, more than $800 million in indemnities were delivered within two weeks following hurricanes Milton and Helene, highlighting the program's responsiveness.
The market is set to grow, with the global agricultural insurance market expected to increase from $50.05 billion in 2024 to $71.18 billion by 2032.
The Congressional Budget Office also projects that premium subsidies for crop insurance will continue to be a significant expenditure, with premium subsidies costing nearly $12 billion in 2023.
However, if commodity prices decline or yields are adversely affected, underwriting results for US multiperil crop insurance (MPCI) writers may remain under pressure.
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