ACE Limited acquires Rain and Hail Insurance Services

ACE Limited has acquired, subject to regulatory and shareholder approvals, Rain and Hail Insurance Services Inc. for approximately $1.1 billion in cash.
Rain and Hail is headquartered in Johnston, Iowa and is the second-largest crop insurance underwriter in the United States and Canada.
ACE says the transaction is expected to be complete by the end of 2010.
Prior to the acquisition, ACE owned approximately 20% of the outstanding common stock of Rain and Hail.
Rain and Hail will continue to operate as a separate and distinct franchise with the company’s ACE Westchester division and Insurance-North America operations.
ACE anticipates a return on capital in excess of its 15% hurdle rate, or the minimum acceptable rate of return.