Bermuda-based Sompo International Holdings Ltd has reached agreement to purchase a leading company in the Italian agriculture insurance market.

Sompo International said the transaction to acquire ARA 1857 S.p.A.- Assicurazioni Rischi Agricoli VMG 1857 is expected to close within the first quarter of 2022, pending regulatory approvals.

It added that ARA will continue to operate under the same brand name and will serve to strengthen the Sompo International agriculture book of business in Europe through increased geographical and exposure distribution.

The company said ARA is an Italian insurance company predominantly active and specialising 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 company said 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. It added that AgriSompo is developing additional capabilities by leveraging Sompo’s extensive agriculture insurance expertise and global presence.

Kris Lynn, President of AgriSompo, said: “AgriSompo is the number one multinational writer of crop insurance across the globe. 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. Once the transaction is complete, Mr Pier Ugo Andreini, current CEO of ARA, will join as a member of the new board of directors.”

Mr Andreini added: “With ARA’s current geographic spread of business and Sompo’s strength globally, this is a welcome complementary opportunity to provide continued superior service and quality insurance protections to our clients.

“With the support of the AgriSompo platform, we are well poised to bring innovative new products and services as a leader in the Italian crop insurance market.”