By Chris Munro

March 21 - (The Insurer) - Palomar Holdings has entered into a definitive agreement to acquire Advanced AgProtection $(AAP)$ in a transaction that builds upon the carrier’s previous strategic investment in the crop insurance-focused MGA and the two firms’ existing multi-year fronting capacity deal.

The acquisition is expected to close during the second quarter of this year.

AAP, which is based in Amarillo, Texas, offers a trio of coverages for livestock, specialty crops and general crops.

“Building on our successful collaboration with Advanced AgProtection over the last two years, this acquisition marks a natural progression for Palomar and our crop franchise,” said Jon Christianson, Palomar’s president.

“AAP’s platform will provide the infrastructure for continued growth as Palomar establishes itself as a preferred and emerging leader in the crop marketplace. Our teams are energised by the opportunities this combination brings.”

Growing out its crop insurance book has been a key focus of Palomar in recent years.

Palomar, which is led by chairman and CEO Mac Armstrong, booked $116.24 million of crop insurance gross premiums written in 2024, compared with $12.11 million the year before.

The La Jolla, California-based insurer said AAP’s team is comprised of industry veterans that have longstanding relationships and a proven track record in the crop insurance sector. It is lead by president and CEO Robert Gideon,

According to the MGA, its mission is “to help the American farmer feed the world through the supplemental safeguard of crop insurance”.

In announcing the planned acquisition, Palomar revealed it made a strategic investment in AAP in 2023.

That investment was made at the same time Palomar announced PLMR-FRONT would serve as a fronting carrier for AAP over an unspecified multi-year time period.

For that fronting agreement to occur, Palomar Specialty Insurance Company had to become authorized as an approved insurance provider in the US by the Federal Crop Insurance Corporation.