ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business deals

Japan's Sompo buys US crop insurer as weather risks grow

Deal helps diversify coverage and manage swings from climate change

Soybeans are harvested from an Indiana field last year. The rise in severe weather events has lifted demand for crop insurance while also heightening insurers' risk of high payouts.   © Reuters

TOKYO -- Japanese insurance group Sompo Holdings will acquire a major American provider of crop insurance as demand rises for protection against losses from extreme weather events on a warming planet.

Sompo International will spend 40 billion yen to 50 billion yen ($376 million to $470 million) to buy Diversified Crop Insurance Services, an arm of grain transporter CGB Enterprises. The U.S. company commands the fourth-largest share of the American market, with its crop insurance coverage focused on the Midwest.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more