Zurich to acquire agricultural insurer for $1.05B
Rural Community Insurance Services is currently owned by Wells Fargo
Staff on December 18, 2015
Zurich will acquire agricultural insurer Rural Community Insurance Services from Wells Fargo for $675 million U.S.
Zurich will also pay roughly $375 million to cover the excess capital in RCIS at the date of closing.
Those funds will come from Zurich’s $3 billion in excess capital, all of which the company will invest in the business or return to investors by the end of 2016.
“The acquisition of RCIS will increase risk diversity of our General Insurance business by leveraging the crop exposure, which has low correlation to the rest of our book,” Kristof Terryn, CEO of Zurich’s general insurance business, said in a release.
In 2014, RCIS recorded $2.1 billion in gross written premiums.
Zurich expects the transaction to close in the first quarter of 2016.