The ACE Group, a leading multiline property and casualty
), launched an agriculture property and casualty insurance
business- ACE Agribusiness. The Ace Group operates in 53
countries. Services of the company include commercial and
personal property and casualty insurance, personal and accidental
health insurance, reinsurance and life insurance.
ACEAgribusiness will provide the agricultural market with
products and services like farm and ranch, and specialty property
and casualty commercial insurance. For this, the company will
combine Rain and Hail Insurance Service Inc.'s Farm and Ranch
division and Penn Millers Insurance Company. Rain and Hail
Insurance Service Inc. and Penn Millers Insurance Company are the
insurance subsidiaries of ACE.
In spite of being a part of ACE Agribusiness, Rain and Hail
will maintain providing its products and services under its
existing name. Its portfolio consists of crop products which
include multi-peril crop insurance, coverages for crop-hail and
peril products meant for the agricultural market. Penn Millers
Insurance Company offers specialty property and casualty
insurance coverages to companies engaged in producing and
distributing agricultural products.
The consortium of Rain and Hail and Penn Millers under ACE
Agribusiness is expected to strengthen the company's agriculture
business by expanding and enhancing its portfolio by
incorporating ACE's expertise in specialty commercial property
and casualty insurance.
In 2012, the North American wholesale and specialty segment of
the company generated lower net premiums earned owing to a
decline in crop-hail production in its agriculture business. The
launch of ACE Agribusiness is expected to help the company
recover from such a situation and write more business in this
segment going forward.
ACE currently carries a Zacks Rank #2 (Buy). Other property
and casualty insurers like
Arch Capital Group Ltd.
Everest Re Group Limited
AXIS Capital Holdings Limited
), carry a Zacks Rank #1 (Strong Buy) and are worth noting.
ACE LIMITED (ACE): Free Stock Analysis Report
ARCH CAP GP LTD (ACGL): Free Stock Analysis
AXIS CAP HLDGS (AXS): Free Stock Analysis
EVEREST RE LTD (RE): Free Stock Analysis
To read this article on Zacks.com click here.