Sompo Holdings is acquiring Italian agricultural insurer Assicurazioni Rischi Agricoli VMG 1857 (ARA) in a transaction that is scheduled to complete in the first quarter of 2022.
ARA is one of the largest providers of agricultural insurance in Italy, offering coverage for losses caused by various adverse weather conditions such as hail, strong wind, frost, excess rain or drought. It traces its roots to Vecchia Mutua Grandine ed Eguaglianza, a mutual insurance company established in 1857.
According to the Japanese P&C giant, the purchase of ARA will strengthen its AgriSompo international agriculture book of business in Europe through increased geographical and exposure distribution. ARA will continue to operate under its own brand post-acquisition.
“The acquisition of ARA is another strategic and welcome step in strengthening our presence with new products and capabilities in a key agriculture market,” said Kris Lynn, president of AgriSompo. “ARA’s trusted name and rich history in the Italian market, combined with the increased geographical footprint, solidifies AgriSompo as the market leader in Italy. Sompo International plans to grant continuity in ARA’s course of action.”
Pier Ugo Andreini, chief executive of ARA, will become a member of the company’s new board of directors.
“With ARA’s current geographic spread of business and Sompo’s strength globally, this is a welcome complimentary opportunity to provide continued superior service and quality insurance protections to our clients,” Andreini said. “With the support of the AgriSompo platform, we are well poised to bring innovative new products and services as a leader in the Italian crop insurance market.”