MOLINE, Illinois (December 18, 2014) – Deere & Company (NYSE: DE) announced today it has reached a definitive agreement to sell its crop insurance business, subject to regulatory approval, to Farmers Mutual Hail Insurance Company of Iowa (FMH), headquartered in West Des Moines, Iowa.
The action is a result of Deere's previously announced review of strategic options for the crop insurance business. The agreement will result in Deere selling both John Deere Insurance Company and John Deere Risk Protection, Inc., which together made up the crop insurance business unit of John Deere Financial.
"We are confident that customers of John Deere crop insurance will be well served with this action," said Don Preusser, president, John Deere Insurance Company and John Deere Risk Protection, Inc. "Farmers Mutual Hail has provided tailored crop insurance packages to farmers for more than 120 years. We believe the success and long tenure of FMH speaks volumes about their dedication to customer service."
FMH was founded in 1893 and is a provider of comprehensive risk management solutions for America's heartland, including private and federal crop insurance, reinsurance products and services, as well as farm and ranch insurance that includes auto, property, and liability coverage.
Deere has been involved in the crop insurance business for 9 years, during which John Deere Insurance Company became a top-10 provider of crop insurance with national distribution.
Closing is expected in the first quarter of the 2015 calendar year. Citi served as exclusive financial advisor to Deere & Company for this initiative.