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Mutual & Federal buys Agricola

27 August 2013 Mutual & Federal

Mutual & Federal recently announced its acquisition of Agricola, the only specialized crop underwriting manager in South Africa, with effect from 1 August 2013. This follows a two year association in which Mutual & Federal underwrote some of Agricola’s bu

Philip du Preez, Head of Mutual & Federal Agri, said: “This transaction is an opportunity for us as a leader in the agricultural asset insurance market to expand our product offering and infrastructure within the crop environment. The combined business will be known as Mutual & Federal Agri and will create a viable and sizeable alternative for crop insurance in a highly competitive market.”

Agricola entered the crop market in 2004 and has since grown to be the third largest player in this market. A major part of their success can be attributed to their experienced personnel, who boast an average of 20 years’ experience within the crop insurance environment.

The 100% acquisition of Agricola means that the business will be integrated into the Mutual & Federal Agri business and will afford the combined entity the opportunity to expand the crop business using the structures and resources that Mutual & Federal offers, together with the financial certainty that comes with dealing with the greater Old Mutual group. On the other hand, Mutual & Federal’s crop insurance footprint will be widened and ensure that, unlike before, the short term insurer’s crop offering will have national representation.

“The reinsurance market has supported our combined ventures in the past and we are extremely pleased that they have again committed to our reinsurance needs within the combined business”, says Du Preez.

“This enables us to offer our clients the depth of our combined expertise and the peace of mind that comes with being insured by a financially stable business such as Mutual & Federal Agri and the larger Old Mutual plc group.”

The CEO of Agricola, Juan van Huyssteen, will be leaving the business to pursue personal interests. The combined operation will report to Philip du Preez in his capacity as Head of Agriculture at Mutual & Federal.

“Crop insurance is integral to the continued success of our farming community and food security of the nation. We are therefore delighted that Mutual & Federal Agri is now well positioned to support a sustainable and successful agricultural sector with a complete product offering to our customers”, Du Preez concludes.

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