Switzerland-based Zurich Insurance Group said that it hascompleted its previously announced $700 million acquisition ofAnoka, Minn.-based crop insurer Rural Community Insurance Services,or RCIS.
|Zurich entered into the agreement to buy RCIS from SanFrancisco-based financial services company Wells Fargo & Co. onDec. 18.
|Zurich said it has been in the $10 billion U.S. crop insurancebusiness for more than 20 years. The acquistion of RCIS shifts itslong-standing position from a reinsurer into a 100% owner of anApproved Insurance Provider through the Federal Crop InsuranceProgram, the company said.
|RCIS will now operate as a stand-alone unit within Zurich NorthAmerica Commercial's Programs & Direct Markets business unit,Zurich said.
|The purchase of RCIS gives Zurich a 20% share of a highlyregulated market guarding farmers against weather-related losses,Vontobel analyst Stefan Schuermann wrote in a note after the dealwas announced. It will provide about $1.6 billion in net earnedpremiums by 2017, adding 3.5% to Zurich's top line, he wrote.
|Related: Zurich buys Wells Fargo crop insurer for up to$1.05 billion
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