NU Online News Service, Dec. 29, 12:45 p.m. EDT
Zurich-based insurer ACE Ltd. said it has completed its acquisition of Johnston, Iowa--based managing general agency Rain and Hail Insurance Service, Inc. for approximately $1.1 billion in cash.
ACE said the purchase price reflects a dollar-for-dollar adjustment as required under the merger agreement to account for an increase to Rain and Hail's book value that occurred between Dec. 31, 2009, and the closing of the transaction.
The company announced previously that the MGA would operate as a separate franchise.
"We are pleased to now officially welcome this fine organization to ACE," said Evan G. Greenberg, Chairman and Chief Executive Officer of ACE in a statement. "We look forward to the benefits that the combination of our two organizations will bring both in the near and longer term."
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