Less than two years after agricultural powerhouse Monsanto bought The Climate Corporation's crop insurance business (CCCIB) for nearly $1 billion, it has already sold CCCIB on.
On July 31, the CCCIB announced it had been purchased by
AmTrust North America. The agreement gives
AmTrust exclusive access to certain CCCIB technologies that can be applied in the crop insurance industry for up to three years.
“While we’re very pleased with the performance of our crop insurance business, the sale of CCCIB will enable us to focus exclusively on our digital agriculture platform,” said Mike Stern, president and chief operating officer for CCCIB in a press release.
“We believe digital agriculture has significant potential to help farmers make key agronomic decisions that can improve the efficiency and productivity of their operations.”
Monsanto purchased CCCIB in Oct. 2013 for $930 million.
According to a document by National Crop Insurance Services (NCIS), the Multi-Peril Crop Insurance program is not as profitable as the P&C business. It has been made much more affordable in recent years with the help of federal subsidies, and more than 89 percent of insurable farmland in the US is now protected through the federal crop insurance program, according to the NCIS. Nineteen USDA-approved insurers sell coverage.
