ACE to Acquire Rain and Hail Insurance Service,
Inc. in $1.1 Billion Transaction
Company to Operate as Core of ACE’s Agriculture Business
September 14, 2010 08:33 AM Eastern Daylight Time
ZURICH--(EON: Enhanced Online News)--ACE Limited (NYSE: ACE) announced today that it has signed a
definitive agreement to acquire all of the outstanding common stock of Rain and Hail Insurance Service, Inc. not
currently owned by ACE for approximately $1.1 billion in cash. A pioneer in crop insurance that has served
America’s farmers since 1919, Rain and Hail, headquartered in Johnston, Iowa, is the second largest crop insurance
underwriter, providing comprehensive multiple peril crop and crop-hail insurance protection to customers in the U.S.
ACE currently owns approximately 20% of the outstanding common stock of Rain and Hail, which will continue to
operate as a separate and distinct franchise within the company’s ACE Westchester division and Insurance-North
“This transaction is a natural extension of our long-term, valued relationship with Rain and Hail and our company’s
specialty lines focus,” said Evan G. Greenberg, Chairman and Chief Executive Officer, ACE Limited. “Rain and Hail
is a leader in the crop insurance business, and over the course of our relationship with them, we have been impressed
by their best-in-class management team and the strength and reputation of their franchise across North America.
“The addition of Rain and Hail to the ACE Group is financially attractive to our shareholders and will produce results
that are immediately accretive to our earnings, return on equity and book value per share,” said Mr. Greenberg.
“This is a business we know well, and we project a return on capital in excess of our 15% hurdle rate.”
The transaction, which is subject to regulatory approvals, the approval of Rain and Hail shareholders and other
customary conditions, is expected to be completed by the end of 2010. The purchase price is subject to adjustment