CUNA Mutual now sole owner of crop insurer ProAg

MADISON, Wis. (11/9/09)--CUNA Mutual Group has closed on its purchase agreement with Producers Ag Insurance Group to become sole owner of the crop insurer.

ProAg, based in Amarillo, Texas, provides multi-peril crop insurance coverage to family farmers and agriculture producers nationwide. The sixth-largest writer of multi-peril crop insurance in the U.S., ProAg will operate as a stand-alone subsidiary of CUNA Mutual.

The acquisition supports CUNA Mutual's need to identify new growth opportunities and diversify the risks it insures, said a joint press release. The agreement with ProAg will also enhance CUNA Mutual's flexibility and financial strength while enabling ProAg to continue expanding its business.

Michael Connealy will serve as president/CEO of ProAg. Kendall Jones has been named chief operating officer. Both men have been with ProAg since May 2006.

Russ Klein of CUNA Mutual will serve as ProAg's chief financial officer, and Deb Casurella, also of CUNA Mutual, has been named chief information officer.

"The decision on ProAg and our recent acquisition of CPI Qualified Plan Consultants build on our expertise and strengthen our financial position," said CUNA Mutual President/CEO Jeff Post. "These acquisitions build off our core competencies, help diversify our business, and provide revenue streams that give us flexibility to invest and grow in the future, while remaining focused on credit unions."

"CUNA Mutual's commitment to our way of doing business makes it the natural provider of the institutional support we need to reach our goals of becoming a market leader," said Ben Latham, ProAg chairman.

Since 2006, when their partnership was formed, ProAg has grown from 70 employees doing business in 25 states to 390 employees serving more than 40 states. ProAg is on pace to generate more than $530 million in premium during 2009, the companies said.

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