ADM captive business settles $112m in claims

Agricultural business Archer Daniels Midlands (ADM)'s captive insurance group has paid out $112 million in claims settlements, the parent company has disclosed. 

The settlement, which included $96 million for "Decatur East and West" insurance claims, meant ADM's "other business operating loss" was $17 million in the third quarter, down $63 million from the previous year, the company said. The reason for the claims settlements was not disclosed.  

For the first nine months of the year, "other business was $200 million, down $29 million versus the prior year, due to the same Captive insurance results. 

The company also said its unallocated corporate costs increased versus the prior year on $28 million in higher legal fees. For the first nine months of the year, legal sfees increased by $75 million.   

Overall, ADM reported net income of $18 million in the third quarter compared to $821 million in the same period in 2023, while its nine-month profit was $1.2 billion compared to $2.9 billion a year earlier.    

According to a rating report by AM Best, ADM Insurance company owns two captive insurers - Agrinational Illinois Insurance Company and Agrinational Insurance Company.

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