The transaction is expected to close by March 2018 pending regulatory approvals.
Sompo said in a statement that the A&A acquisition aligns with its recently announced new initiative, AgriSompo, a global platform to deliver innovative and coordinated agricultural risk management solutions tailored to local market needs.
“A&A will complement AgriSompo’s objective of building integrated global capabilities in the crop insurance business, both by leveraging Sompo’s extensive agriculture insurance expertise and acquiring specialty companies in key markets,” it added.
Sompo International plans to maintain A&A’s current staff, structure and management team, including Giovanni Giudici as Chairman and Guido Passarini as Chief Administrative Officer. Once the transaction is complete, John Charman, Sompo International CEO and Chairman; Kristopher Lynn and Avery Cook, Senior Vice Presidents of Agriculture Reinsurance; and Patrizio Cassinis, Senior Vice President and Senior Underwriter Reinsurance, will join A&A’s Board of Directors.
Charman said A&A is “an attractive addition to our AgriSompo platform, given the A&A team’s deep technical expertise and knowledge of agriculture insurance, and their significant market share built on long-term distribution relationships throughout Italy”.
“The acquisition of A&A will greatly accelerate Sompo International’s presence in the Italian crop insurance market and provide us with unique opportunities to introduce new products and technologies in the Italian agri-business market,” he added.
Giudici added that through Sompo International’s extensive agriculture insurance capabilities and financial investment in new technologies, A&A will be able to provide enhanced risk solutions to the Italian agriculture community.
Sompo International’s Tokyo-based parent company Sompo Holdings Inc. completed its purchase of Bermuda-based Endurance Specialty Holdings Ltd., for US$6.3 billion in March last year. Endurance was integrated into Sompo Holdings through the creation of Sompo International.