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8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - HCC INSURANCE HOLDINGS INC/DE/ | a14-21679_18k.htm |
EX-2.1 - EX-2.1 - HCC INSURANCE HOLDINGS INC/DE/ | a14-21679_1ex2d1.htm |
Exhibit 99.1
HCC INSURANCE HOLDINGS ANNOUNCES ENTRY INTO CROP INSURANCE BUSINESS WITH ACQUISITION OF PRODUCERS AG INSURANCE GROUP
HOUSTON (September 30, 2014) . . .
HCC Insurance Holdings, Inc. (NYSE: HCC) today announced it has reached a definitive agreement to acquire Producers Ag Insurance Group, Inc. (ProAg) from CUNA Mutual Group in an all-cash purchase of ProAgs capital stock for $110 million, subject to a net worth adjustment at closing as described in the purchase agreement. The transaction, which is subject to regulatory approvals, is expected to close in the first quarter of 2015. ProAgs current management team will continue to operate the business.
ProAg is one of the leading writers 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. In 2013, ProAg was the sixth largest writer of multi-peril crop insurance and crop hail insurance, with a 5% market share. The company is headquartered in Amarillo, Texas with seven offices across the United States. ProAg employs approximately 500 people supporting operations in 41 states.
Crop insurance is a non-correlated line of business we strategically targeted to add to HCCs diversified portfolio of specialty insurance businesses. We believe ProAg provides a solid platform to incrementally grow our profitability. We are pleased to welcome the ProAg management team and employees to HCC, said Christopher J.B. Williams, HCCs Chief Executive Officer.
ProAg is excited about the opportunity to continue building our crop insurance franchise under HCCs ownership. With HCCs guidance and support, we expect ProAgs strong agricultural risk management program to thrive and grow, said Michael E. Connealy, ProAgs President and Chief Executive Officer.
J.P. Morgan Securities LLC served as exclusive financial advisor to HCC on the transaction.
Headquartered in Houston, Texas, HCC Insurance Holdings, Inc. is a leading specialty insurer with offices in the United States, the United Kingdom, Spain and Ireland. As of June 30, 2014, HCC had assets of $10.9 billion and shareholders equity of $3.9 billion. HCCs major domestic and international insurance companies have financial strength ratings of AA (Very Strong) from Standard & Poors Corporation, A+ (Superior) from A.M. Best Company, Inc., AA (Very Strong) from Fitch Ratings, and A1 (Good Security) from Moodys Investors Service, Inc.
For more information about HCC, please visit http://www.hcc.com.
Contact: Doug Busker, Director of Investor Relations
HCC Insurance Holdings, Inc.
Telephone: (713) 996-1192
Forward-looking statements contained in this press release are made under safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. The types of risks and uncertainties which may affect the Company are set forth in its periodic reports filed with the Securities and Exchange Commission.
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