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Zurich U.S. and Allendale Form Strategic Alliance to Offer New Farm Risk Management Product; ZARM Provides Reliable Income Protection and Private Crop Insurance.

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The Agribusiness unit of Zurich U.S., a leading provider of insurance coverages for agribusinesses, and Allendale Inc., a leader in agriculture risk management programs, have formed an alliance to provide a new risk management product for agricultural producers, the companies announced today. The product, called ZARM, combines the Allendale Risk Management (A.R.M.) program with Zurich U.S.' YieldBand(SM) insurance product to offer enhanced crop protection to farmers.

The A.R.M. program provides reliable income protection to agribusinesses through grain pricing, merchandising and bank loan collateralization programs. The new alliance will provide agricultural producers with the additional protection of YieldBand(SM), which offers insurance for row crops (specifically, corn and soybeans). YieldBand(SM) coverage offers farmers, co-ops and grain associations protection against yield loss from unavoidable causes. The product can help increase income protection per acre, stabilize net income and increase collateral value.

The ZARM product is available to corn and soybean producers in six states - Illinois, Indiana, Iowa, Minnesota, Nebraska and Ohio. YieldBand(SM) is offered by Assurance Company of America, a member company of Zurich U.S. YieldBand(SM) and A.R.M. are independent products and can be purchased separately. YieldBand(SM) is not involved or associated with the federal MPCI program.

Bill Ziletti, senior vice president and director of the Zurich U.S. Agribusiness unit, said, "The goal of our alliance is to provide U.S. agricultural producers with a risk management program that can generate strong revenue results, guarantee collateral for agricultural lenders, and maintain the independence that farm managers demand. "

Paul Georgy, President and CEO of Allendale, Inc., added, "Farm production is subject to many different factors out of farmers' control. The ZARM product will help give farmers peace of mind. Farmers who qualify for the program should be able to achieve positive net revenue results within a selected `yield band' - that means revenue stability no matter what happens to prices or yield."

Zurich U.S. ( 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 6,700 employees and assets of $10.2 billion. The company writes more than $4 billion in annual premiums. Zurich U.S.' business units are Enterprise Risk, Small Business, Construction, Global Energy, Specialties, Fidelity & Deposit, Empire Fire and Marine, Middle Markets, Wholesale, and Warranty and Manufacturing. 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 ( is a global leader in the financial services industry, providing its customers with solutions in the area of financial protection and asset accumulation. The Group concentrates its activities in four core businesses: non-life and life insurance, reinsurance and asset management. Headquartered in Zurich, Switzerland, the Group's worldwide presence builds on strong positions in its three key markets: the United States, the United Kingdom and Switzerland. It has offices in more than 60 countries reaching over 35 million customers and employing 68,000 people. Based on consolidated figures for 1999, the Group achieved gross premiums of USD 48 billion. This amount includes insurance deposits as well as premiums from the Farmers Exchanges. The net income amounted to USD 3.26 billion. On December 31, 1999, the Group had USD 442 billion of assets under management of which USD 264 billion represent funds managed for third-party institutional and retail customers.

Allendale Inc. ( is one of the largest commodity research advisory firms in Mid-America and one of the few remaining brokerage firms that develops its own research. The firm concentrates on agricultural risk management, futures and options brokerage, research, insurance, and merchandising. Additionally, Allendale provides marketing advice and consulting to producers, major food companies and government agencies. Allendale conducts business in three countries. Located in McHenry, IL, Allendale helps market grain and livestock for clients in 22 states and employs 31 people. Allendale was established in 1984 by Paul J. Georgy and William W. Biedermann in a country grain elevator in Crystal Lake, Illinois and moved to its present location in McHenry, IL in 1995.
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Publication:Business Wire
Date:Feb 7, 2001
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