ACE Limited, Bermuda, announced today that their North American crop insurance operations will be minimally affected by the continuing Midwest flooding, but provided no loss estimates.
The company, which fell to second place this year among insurers writing U.S. crop insurance, said flooding will have a "negligible impact on both second-quarter and full-year earnings per share results."
Brian Dowd, chief executive officer for ACE's North American Insurance operations, said in a statement, "In addition to reinsurance protection provided by the government, we are also protected by stop-loss reinsurance coverage we purchase on our portfolio from the private market."
He added, "ACE maintains a well-diversified crop insurance book by product and geography and has been in this business for many years." ACE operates its crop line of business through Rain and Hail L.L.C. Inc.
According to Highline Data, a Summit Business Media Company which also owns National Underwriter, last year ACE was the largest writer of crop insurance with a 17 percent market share, taking in $1,143,812,310 in direct premiums written.
In second place was Wells Fargo Group with a 16.6 percent share at $1, 116,355,095. This year Wells Fargo is reportedly the largest crop insurer with a 17 percent market share.
A spokesman for ACE North America declined to provide current data on the company's share of the market this year.
In addition to Wells Fargo, the other three crop insurers making up the top five in direct premiums written last year were Nau Country Insurance Company with $708,129,256; American Financial Insurance Group with $704,227,830; and Allianz Insurance Group.
Iowa, Illinois and Indiana have undergone the most crop damage during the recent flooding.
A spokesperson for Iowa Gov. Chet Culver's office said eastern Iowa was the hardest hit location in the state and there is an estimated $3 billion in crop damage and agricultural impact on Iowa from flooding.
Last month the U.S. Department of Agriculture opened 24 million acres that were previously enrolled in the Conservation Reserve Program.
There have been talks concerning giving farmers permission to plant on land that has been set aside for reservation, but the state is currently concentrating primarily on assessing the damage, an Iowa Department of Agriculture spokesperson said.
Gov. Culver declared 84 counties disaster areas, and 70 counties have been declared federal disaster areas.
The Federal Emergency Management Agency has approved 49 Iowa counties for individual assistance. The assistance provides low-interest loans, temporary housing, tax refunds and free legal counseling among other benefits to homeowners, renters, business owners and nonprofit organizations.
FEMA has also approved 65 counties for public assistance, funding debris removal, emergency services repairing or replacing public facilities.
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