Dateline: 15/08/2000
Two Industry Leaders Address Changing Coverage Needs of Traditional and Non-Traditional Customers
SCHAUMBURG, IL -- Zurich U.S. and The Hartford Financial Services Group Inc. announced today that they have formed a strategic relationship to co-market their agribusiness products in a program designed to take advantage of each company’s unique strengths.
Under the agreement, effective June 1, 2000, the Zurich U.S. Agribusiness Unit will provide core property casualty coverage and The Hartford will provide livestock mortality coverage. In addition, Zurich U.S. will offer specialty products such as environmental impairment liability, umbrella, and directors and officers coverage.
Agribusiness has evolved over the past decade from traditional farms and livestock ranches to an industry ranging from family-run specialty farms and vineyards to large industrial conglomerates using the latest scientific technology. At the same time, occurrences once accepted as normal business risks, including environmental disruption and livestock mortality, have become less tolerated in the Agribusiness community due to regulatory scrutiny.
"The result is an increased awareness of specific exposures," said Zurich U.S.’s Vice- President of Agriculture, William Ziletti, Jr. "Zurich’s commitment to Agribusiness has resulted in the development of new products to serve market needs that may have been unprotected in the past. Agents and customers alike will benefit from a program that combines broad-based agribusiness and specialty coverage with a specialty product that addresses the unique aspects of the livestock sector," Zilletti explained.
"Our agribusiness customers, both agents and insureds, have told us they need stability, capacity, and fundamental knowledge of the livestock sector from their insurance company," said Robert Crutcher, President of The Hartford's International Agribusiness Group.
"With this marketing alliance, customers will get some of the broadest solutions available anywhere in the market from two companies who have built their reputations on their industry expertise and their superior products and services. This partnership marks another way that The Hartford is responding to agent needs, and making it easier to do business with us."
The program will work as a referral process, with agents of each company referring customers to the other company’s product as a way to round out the customer’s insurance coverage. The products themselves will remain independent, with livestock mortality coverage underwritten by The Hartford and basic property/casualty and other specialty products underwritten by Zurich U.S. The two companies estimate the market for the expanded coverage at approximately 140,000 customers.
The program will be managed by the Enterprise Risk unit of Zurich U.S., which provides package and custom casualty programs as well as group, integrated risk and total risk profiling programs for large multinational corporations and middle market companies, and The Hartford's International Agribusiness group, which has served the agribusiness community with livestock and crop coverages for more than 80 years.
Zurich U.S. (www.zurichna.com) is a leading commercial property-casualty insurance provider serving the multinational, middle market and small business sectors in the United States. Headquartered in Schaumburg, Ill. and operating in all 50 states and the District of Columbia, Zurich U.S. has 6,400 employees and assets of $10.2 billion. The company writes more than $4 billion in annual premiums. The Zurich U.S. business units are Enterprise Risk, Diversified Products, Small Business, Construction, Global Energy, Specialties, Zurich Services and Fidelity & Deposit. Insurance coverages are underwriten by Zurich American Insurance company or other members of Zurich U.S.
Zurich U.S. is a member of the Zurich Financial Services Group, a global leader in the financial industry. Zurich U.S. is rated A+ (Superior) by A.M. Best and AA+ (Excellent) by Standard & Poor’s.
The Zurich Financial Services Group (www.zurich.com) provides its customers with solutions in the area of financial protection and asset accumulation, concentrating in four core businesses: life insurance, non-life insurance, reinsurance and asset management. Headquartered in Zurich, Switzerland, the Group's worldwide presence builds on strong positions in its three home markets: the United States, the United Kingdom and Switzerland. Zurich Financial Services Group has offices in more than 60 countries, employs 68,000 people and reaches 33 million customers.
The Hartford (NYSE:HIG) is one of the nation's largest insurance and financial services companies, with 1999 revenues of $13.5 billion. As of March 31, 2000, The Hartford had assets of $172.4 billion and shareholders’ equity of $5.7 billion. The company is a leading provider of investment products, life insurance and employee benefits; automobile and homeowners products; commercial property and casualty insurance; and reinsurance. It is rated A+ (Superior) by A.M. Best and AA (Excellent) by Standard & Poor's. The Hartford's Internet address is www.thehartford.com.
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Media contacts
For Zurich U.S.:
Fran Harding Joanne Lessner
Zurich U.S. Miller DeMartine Group
(410) 338-9500 (212) 222-7436
fran.harding@zurichna.com jlessner@mdgpr.com
For The Hartford:
Cynthia Michener
The Hartford
(860) 547-5624
cynthia.michener@thehartford.com