Global Ag Insurance Services, a crop insurance provider focused on western specialty crop producers, and XL Reinsurance America Inc. (“XLRA”), a reinsurance subsidiary of XL Group plc (NYSE:XL), announced today that they have successfully teamed up to offer crop insurance through the Federal MPCI program beginning immediately. Global Ag and XLRA have received approval from the Risk Management Agency, a division of the US Department of Agriculture, to offer crop insurance policies through the Federal program. The companies will also offer named peril, crop hail and other private insurance solutions that are specifically tailored to meet the unique needs of western specialty crop producers.
Headquartered in Fresno, California, Global Ag was founded by Jordan Roach and Brandon Roach, two brothers with deep roots in the California agricultural community. While serving as a trusted advisor and specialty crop agent to some of the largest agribusiness companies in the nation, Jordan realized that the majority of risk management tools and solutions available to specialty crop producers and growers were not well suited to meet the unique needs of producers in the western region of the United States. Conventional risk management and crop insurance solutions were historically designed to address the needs of corn growers in the Midwest and cotton growers in the South, but very few tools had been developed with the western specialty crop producer in mind. The team at Global Ag intends to change that.
“All of the existing companies offering crop insurance in the western United States are headquartered outside of the region. As a result, they often lack the specialized knowledge and relevant experience in specialty crop agricultural risk management that is required to effectively address the needs of growers and producers in the region,” said Jordan Roach, CEO of Global Ag. Jordan has been a strong advocate for program improvement and has lobbied for better solutions for western specialty crop growers and producers. He has testified in front of the Congressional House Agriculture Committee, and has served as Vice-Chair of the Crop Insurance Professionals Association (CIPA), a national organization dedicated to strengthening the crop insurance program.
Jordan is joined at Global Ag by his brother, Brandon Roach, a graduate of the United States Naval Academy and a decorated combat veteran with the US Navy SEAL Teams. Brandon earned an MBA from the Stanford Graduate School of Business where he was an Arjay Miller Scholar, and spent five years as a Vice President at Summit Partners, a global private equity firm with over $11 billion of capital under management. Leveraging his experience in the financial and capital markets, along with his roots in California agriculture, Brandon sought to identify a well-established partner for Global Ag that could provide the necessary capital and experience for improving the delivery of risk management solutions to western specialty crop producers and growers.
After spending time with the executive team at XLRA, Brandon and Jordan were confident they had found an ideal partner. XLRA is a reinsurance subsidiary of XL Group plc, a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. XLRA participated in the Federal crop insurance program for over a decade, during which time the Company successfully underwrote more than two billion dollars of MPCI crop insurance premium. As of March 31, 2012, XL Group plc had consolidated assets of approximately $45.1 billion and consolidated shareholders’ equity of $11.1 billion.
“XLRA’s financial strength, successful track record in crop insurance, and demonstrated commitment to agriculture provide the perfect platform for the improved delivery of risk management solutions to specialty crop producers and growers,” said Brandon Roach, President of Global Ag.
Though XLRA was familiar with the market opportunity that existed in the western United States, the Company understood the importance of identifying a partner with regional experience and deep roots in the California agricultural community. With over 300 different commodities grown commercially in California alone, the need for specialized crop insurance solutions and customized product offerings far exceeds that of any other region in the United States.
“Global Ag’s specialty crop expertise, technical program and policy knowledge, and deep relationships with leading specialty crop producers and agents create a unique opportunity to materially improve the delivery of risk management solutions to agricultural producers and growers in the western United States,” said John Welch, President and CEO of XLRA.
Global Ag will begin offering MPCI and named peril products to specialty crop producers and growers in the western United States immediately. The Company is the first crop insurance provider to be based in California and the only company in the Federal MPCI program that focuses primarily on specialty crop producers and agents. Global Ag is deeply committed to the continued improvement of agricultural risk management solutions in California and the western United States.