MADISON, Wis.—CUNA Mutual Group said it has reached an agreement to sell Producer’s Ag Insurance Group (ProAg), its crop insurance business, to HCC Insurance Holdings, Inc. for $110-million in cash. The transaction, which is subject to regulatory approvals, is expected to close in the first quarter of 2015.
“This transaction allows our company to put even more focus on our core business lines serving consumers, credit unions, small plan advisors, and other core customer groups,” said CUNA Mutual CEO Robert N. Trunzo in a statement.
CUNA Mutual Group assumed full ownership of ProAg in 2009, with then CEO Jeff Post saying the effort was designed to provide greater diversification, especially at a time the financial services market was under stress.
“Today, CUNA Mutual Group’s primary business lines show strong growth,” the company said. “Accordingly, this transaction will allow even greater strategic focus on these areas in line with CUNA Mutual Group’s long-term strategic plans.”
HCC is based in Houston.