Sompo Holdings to acquire Italian crop insurance firm

The transaction will be finalised next year.

Japanese insurance holdings company, Sompo Holdings, through its subsidiary Sompo International Holdings Ltd. has acquired the Italian insurance company, ARA 1857 S.p.A.-Assicurazioni Rischi Agricoli VMG (ARA).

ARA is an Italian insurance company predominantly active and specializing in crop insurance. ARA’s roots derive from Vecchia Mutua Grandine ed Eguaglianza, a mutual insurance company established in 1857. ARA provides coverage for losses caused by various adverse weather conditions such as hail, strong wind, frost, excess rain, or drought.

The ARA book of business will be a part of AgriSompo, Sompo International’s global agriculture platform, delivering innovative and coordinated risk management solutions tailored to local needs across the agribusiness market. AgriSompo is developing additional capabilities by leveraging Sompo’s extensive agriculture insurance expertise and global presence.

The acquisition will be completed sometime next year pending regulatory approval. The current CEO of ARA, Pier Ugo Andreini, will then join as a member of the new Board of Directors.

“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,” Kris Lynn, president of AgriSompo said.