Dairyland is moving its insurance business from a company called Dairyland Holdings Inc., to an entity called Dairylands Insurancys.
The move is part of a larger effort to simplify and streamline its business, which is expected to cost $200 million.
It’s part of what the company calls a “significant change to the structure and structure of the company.”
Dairyland’s insurance division will no longer be managed by a separate company, Dairyland Insuranches, said David Karras, Dairylands CEO.
The company will continue to own all of its risk assets, which include the Dairyland brand and dairy products, and Dairyland brands will continue as insurance assets.
The insurance business will be managed in a single company that will have a single accounting unit.
“This has been a challenging decision to make, but one that is in the best interests of our company and our customers,” Karrs said in a statement.
“We thank all of our stakeholders for their support and dedication over the years.
We look forward to working with all of them to ensure our customers have access to the highest level of insurance products in the industry.”
It’s a change that’s likely to cost more than $200m.
The move will be made on June 1.
The dairy industry, which employs about 8 million people, is expected lose $20 billion in revenue from the shift, according to a Dairyland spokesperson.
The shift comes at a time when the dairy industry is grappling with rising health costs.
A report from the National Dairy Council in February estimated that the industry is on track to lose $5.5 billion from 2019 to 2024.
Dish Network said it will keep its name and logo on its insurance products, but will move to a new corporate entity.
Derek Smith, CEO of the National Association of Insurance Commissioners, which represents the insurance industry, said that the move is an important step in the evolution of the industry.
He said the transition will also allow for the industry to continue to provide affordable, quality, and reliable insurance coverage for the most consumers in the U.S.