CUNA Mutual Buys Crop Insurer Posted by AVCU on 11:51 AM

In a recent letter to credit unions CUNA Mutual President and CEO Jeff Post announced the purchase of Producers Ag Insurance Group (ProAg), to provides multi-peril crop insurance coverage to family farmers and agriculture producers nationwide. The move follows CUNA Mutual’s initial foray into crop insurance when it became a reinsurance partner with ProAg in 2006, and acquired a minority stake in the ProAg in 2007. ProAg does business in 40 states, generates approximately $500 million in annual premiums and is based in Amarillo, Texas. ProAg has been owned by the Latham family, and will continue to be led by current management.

CUNA Mutual bills the recent purchase as a diversification strategy that utilizes the company’s competencies and provides alternative revenue streams for future growth. Crop insurance from companies like ProAg protects farmers from financial losses resulting from natural causes such as drought, excessive moisture, hail, wind, frost, insects, disease and commodity price volatility. This is an $8 billion industry in the U.S.

For more details about the CUNA Mutual purchase of ProAg see the joint press release.