HCC Insurance To Acquire ProAg For $110 Mln - Quick Facts

(RTTNews) - HCC Insurance Holdings Inc (HCC), Tuesday agreed to buy Producers Ag Insurance Group Inc (ProAg) from CUNA Mutual Group in an all-cash purchase of ProAg's capital stock for $110 million, subject to a net worth adjustment at closing. T

The transaction is expected to close in the first quarter of 2015. ProAg's current management team will continue to operate the business.

ProAg is a writer of crop insurance in the United States with gross earned premiums of $633.5 million in 2013. The company writes multi-peril crop, crop hail, named peril and livestock insurance. The company is headquartered in Amarillo, Texas with seven offices across the United States. ProAg employs about 500 people.

"Crop insurance is a non-correlated line of business we strategically targeted to add to HCC's diversified portfolio of specialty insurance businesses. We believe ProAg provides a solid platform to incrementally grow our profitability," said Christopher Williams, HCC's chief executive officer.