Bermuda's Endurance Buys U.S. Crop Insurer

ARMtech Insurance Services, a Lubbock, Texas-based crop insurer, will be acquired by a holding company for Endurance Specialty Holdings Ltd., in Bermuda, a property-casualty insurance and reinsurance provider, it was announced.

Financial terms of the transaction were not disclosed. ARMtech, according to Endurance, is the fifth largest underwriter of U.S. federally sponsored crop insurance, with $410 million in total premiums in 2007.

Endurance said that under its ownership, ARMtech will have the benefits of an expanded balance sheet, which in turn will position ARMtech for further development of its business.

Samuel R. Scheef, the founder, majority owner and president of ARMtech, with ARMtech's other employee founders and current managers will continue to manage the day-to-day operations of ARMtech's business, Endurance said.

Kenneth J. LeStrange, Endurance chairman, president and chief executive officer, said, "This is a strong step toward our goal of becoming the best specialty insurer and reinsurer in the business."

He called ARMtech "one of the preeminent participants in the crop insurance industry," and said that "ARMtech's commitment to customer service, dedication to technological superiority and knowledgeable approach to its selected specialty align superbly with Endurance's values and objectives."

"We believe that Endurance is the ideal business partner to help us continue on our path to becoming the nation's premier crop insurance provider. We are excited about the opportunities Endurance will enable for our employees and agents," Mr. Scheef said.

ARMtech was founded in 1996 and entered the crop insurance services business in 1999 as a Texas-based managing general agency. ARMtech acquired American Agri-Business Insurance Company in 2003. American Agri-Business Insurance Company holds the Standard Reinsurance Agreement with the Federal Crop Insurance Corporation and is licensed to underwrite crop insurance in 33 states.

Crop insurance indemnifies farmers against crop losses by guaranteeing a set crop price, yield or total revenue for the harvest period in exchange for a premium payment.

ARMtech offers insurance primarily through the federally sponsored Multiple Peril Crop Insurance program using a network of agents it provides with technology and training to simplify the pricing, execution and submission of insurance policies in accordance with government regulations.

ARMtech also works with claims adjusters to process claims from insured farmers.