The transaction marks the beginning of a strategic alliance
Bermuda reinsurance firm Everest Re has sold its US crop MGA Heartland Crop Insurance to CGB Diversified Services (CGB DS) and has in turn entered into a long-term reinsurance relationship with CGB DS for quota share reinsurance capacity on its combined crop insurance portfolio.
Everest Re sold Heartland Corp Insurance for $49m.
The strategic alliance between Everest Re and CGB DS was announced in July, when Everest Re president and chief executive John Doucette said: “We are excited to enter this strategic reinsurance partnership with CGB DS. They are a well-respected crop insurance operation in the U.S. with strong market penetration. This alliance provides Everest access to a much broader, more diversified, crop insurance portfolio.”