Sompo International plans to bolster its agriculture business in Europe with this acquisition. Credit: Hans Braxmeier from Pixabay.

Sompo International, a specialty re/insurer, has signed an agreement to acquire Italian insurance company ARA 1857 (ARA) for an undisclosed sum.

Through the acquisition of ARA (Assicurazioni Rischi Agricoli VMG) 1857, which specialises in offering crop insurance, Sompo International aims to augment its agriculture business in Europe.

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ARA provides coverage for losses incurred due to extreme weather conditions such as hail, strong wind, frost, excess rain or drought.

The acquired business will become part of Sompo International’s global agriculture platform, AgriSompo.

AgriSompo president Kris Lynn said: “The acquisition of ARA is another strategic and welcome step in strengthening our presence with new products and capabilities in a key agriculture market. ARA’s trusted name and rich history in the Italian market, combined with the increased geographical footprint solidifies AgriSompo as the market leader in Italy. Sompo International plans to grant continuity in ARA’s course of action.”

As per the terms of the transaction, which is expected to close in the first quarter of 2022, ARA will continue to operate under the same brand name.

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Furthermore, Pier Ugo Andreini, current CEO of ARA, will join as a member of the new board of directors.

Andreini added: “With ARA’s current geographic spread of business and Sompo’s strength globally, this is a welcome complimentary opportunity to provide continued superior service and quality insurance protection to our clients.

“With the support of the AgriSompo platform, we are well poised to bring innovative new products and services as a leader in the Italian crop insurance market.”

The Italian insurer derives its roots from a mutual insurance firm founded in 1857, called Vecchia Mutua Grandine ed Eguaglianza.

In July this year, Wingsure developed a mobile app to offer bespoke insurance products to small farmers worldwide.