MOLINE, Ill., Dec. 18, 2014 /CNW/ -- 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.
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SOURCE Deere & Company