ACE: Floods to Have Impact on Crop Insurance Biz

ACE Limited announced that the effects of the recent floods in the Midwestern United States on its crop insurance business, based on current estimates, will have a negligible impact on both second quarter and full-year earnings per share results.

ACE is the second largest writer of crop insurance in the U.S. and conducts this line of business through Rain and Hail L.L.C. Inc., a provider of risk management crop insurance programs to rural America.

“ACE maintains a well-diversified crop insurance book by product and geography and has been in this business for many years,” said Brian Dowd, CEO of ACE’s North American Insurance operations. “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. The recent floods are a tragic event and come at an inauspicious moment. They impact not just American farmers but the global population given current world food supply shortages.”