May 01, 2017
Validus Holdings Completes Acquisition of Archer Daniels Midland Crop Risk Services Business
PEMBROKE, Bermuda--(BUSINESS WIRE)--May 1, 2017--
Validus Holdings, Ltd. (“Validus” or the “Company”) (NYSE: VR) announced
today that it has completed its acquisition of Archer Daniels Midland
Company’s (“ADM”) (NYSE:ADM) Crop Risk Services business (“CRS”).
CRS is a primary crop insurance managing general agent based in Decatur,
Illinois with $555.0 million gross premiums written in 2016 and 1,170
agents across 36 states.
Validus’ Chairman and Chief Executive Officer Ed Noonan stated, “The
acquisition of CRS is another important step in building our global
specialty insurance business. Validus will benefit from CRS’s commitment
to provide superior customer service to agents and farmers via their
leading technology capabilities. We welcome CRS to Validus and look
forward to working with ADM to continue offering a full range of crop
insurance products, as well as ADM’s grain marketing services to our CRS
Joe Taets, President of ADM’s Agricultural Services Business Unit,
stated, “We’re pleased to complete a transaction that advances our
strategy by allowing ADM to partner with Validus to continue to offer
CRS customers a full array of grain marketing products and services.
We’d like to thank the CRS team for their service to ADM, and look
forward to continuing to work with them and the rest of Validus.”
Under the terms of the transaction, ADM received $127.5 million in cash,
subject to certain working capital and balance sheet adjustments, in
exchange for 100% of the outstanding stock of CRS. The transaction
includes a marketing services agreement under which ADM and Validus will
continue to work together to offer a full range of insurance and farm
products and services to CRS customers. CRS will operate as part of the
Western World Insurance Group.
About Validus Holdings, Ltd.
Validus Holdings, Ltd. ("Validus") is a holding company for reinsurance
and insurance operating companies and investment advisors including
Validus Reinsurance, Ltd. (“Validus Re”), Talbot Underwriting Ltd.
(“Talbot”), Western World Insurance Group, Inc. (“Western World”) and
AlphaCat Managers, Ltd. (“AlphaCat”).
Validus Re is a global reinsurance group focused primarily on treaty
reinsurance. Talbot is a specialty insurance group primarily operating
within the Lloyd's insurance market through Syndicate 1183. Western
World is a U.S. specialty lines insurance group focused on excess and
surplus lines. AlphaCat is a Bermuda based investment adviser managing
capital for third parties and Validus in insurance linked securities and
other property catastrophe and specialty reinsurance investments.
About Crop Risk Services
Crop Risk Services (“CRS”) is a primary crop insurance managing general
agent based in Decatur, Illinois. CRS was established in 1982 as ASI
AgriServe Inc. In 2010, ADM acquired 100 percent of the shares of ASI,
and the company became ADM Crop Risk Services.
CRS aims to provide farmers with affordable crop income protection,
superior service and utmost integrity.
Cautionary Note Regarding Forward-Looking
This press release may include forward-looking statements, both with
respect to the Company and its industry, that reflect our current views
with respect to future events and financial performance. Statements that
include the words "expect", "intend", "plan", "believe", "project",
"anticipate", "will", "may" and similar statements of a future or
forward-looking nature identify forward-looking statements. All
forward-looking statements address matters that involve risks and
uncertainties, many of which are beyond the Company's control.
Accordingly, there are or will be important factors that could cause
actual results to differ materially from those indicated in such
statements and, therefore, you should not place undue reliance on any
such statements. We believe that these factors include, but are not
limited to, the following: 1) unpredictability and severity of
catastrophic events; 2) rating agency actions; 3) adequacy of Validus'
risk management and loss limitation methods; 4) cyclicality of demand
and pricing in the insurance and reinsurance markets; 5) statutory or
regulatory developments including tax policy, reinsurance and other
regulatory matters; 6) Validus' ability to implement its business
strategy during "soft" as well as "hard" markets; 7) adequacy of
Validus' loss reserves; 8) continued availability of capital and
financing; 9) retention of key personnel; 10) competition; 11) potential
loss of business from one or more major insurance or reinsurance
brokers; 12) Validus' ability to implement, successfully and on a timely
basis, complex infrastructure, distribution capabilities, systems,
procedures and internal controls, and to develop accurate actuarial data
to support the business and regulatory and reporting requirements; 13)
general economic and market conditions (including inflation, volatility
in the credit and capital markets, interest rates and foreign currency
exchange rates); 14) the integration of businesses Validus may acquire
or new business ventures Validus may start; 15) the effect on Validus'
investment portfolios of changing financial market conditions including
inflation, interest rates, liquidity and other factors; 16) acts of
terrorism or outbreak of war; and 17) availability of reinsurance and
retrocessional coverage, as well as management's response to any of the
The foregoing review of important factors should not be construed as
exhaustive and should be read in conjunction with the other cautionary
statements that are included herein and elsewhere, including the risk
factors included in Validus' most recent reports on Form 10-K and Form
10-Q and other documents of the Company on file with or furnished to the
U.S. Securities and Exchange Commission (“SEC”). Any forward-looking
statements made in this press release are qualified by these cautionary
statements, and there can be no assurance that the actual results or
developments anticipated by Validus will be realized or, even if
substantially realized, that they will have the expected consequences
to, or effects on, Validus or its business or operations. Except as
required by law, the Company undertakes no obligation to update publicly
or revise any forward-looking statement, whether as a result of new
information, future developments or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170501006039/en/
Source: Validus Holdings, Ltd.
Validus Holdings, Ltd.
Charlotte Connerton / Mustafa Riffat