The Hanover Insurance Company announced early this morning the terms of an offer to acquire the specialist Lloyd’s insurance group, Chaucer Holdings PLC. The Hanover Insurance Group, based in Worcester, MA, offers a wide range of property and casualty products and services to individuals, families and business through an extensive network of independent agents in the United States. It currently holds an A rating from A.M. Best.
Chaucer Holdings, PLC, is a specialist insurance group that underwrites business at Lloyd’s, the world’s leading insurance and reinsurance market. Chaucer deploys specialist underwriters in all major insurance and reinsurance classes, encompassing global marine, energy, non-marine, aviation, and a UK motor business and nuclear insurance. Headquartered in London, Chaucer has regional operations in Whitstable, England and international operations in Houston, Singapore, Buenos Aires and Copenhagen and trades on the London Stock Exchange.
Since Chaucer is a British company, the transaction will be subject to customary conditions, including approval by Chaucer’s shareholders and regulatory approvals in the U.K., U.S. and other jurisdictions, as well as certain court approvals in the U.K. If all goes smoothly, The Hanover expects the transaction to close during the third quarter of this year and will join other Massachusetts insurance companies like Liberty Mutual and Commerce, who now boast a global insurance presence.
Hanover’s Chief Executive Officer, Frederick H. Eppinger is excited to welcome Chaucer’s management and associates to The Hanover and believes the future is bright for both companies. “Increasingly, many of our partners are seeking carriers that can deliver product solutions and risk placement capabilities in highly specialized markets with growing international exposures,” Eppinger says, “This acquisition would represent a significant step forward in our journey to build a world class property and casualty company.”
Chaucer’s Chief Executive Officer, Bob Stuchbery, is equally happy with the outcome of the negotiations between the two companies. “We are very excited about the prospects of joining The Hanover,” said Stuchbery. “As part of The Hanover, we will remain fully focused on delivering our corporate strategy with the aim of further positioning us as the Lloyd’s specialist insurer of choice in our areas of expertise. Furthermore, under the ownership of The Hanover, we expect to build on The Hanover’s market position, and access attractive specialty business through its strong U.S. retail distribution.”
“Overall, this is a great cultural fit that brings together two businesses with the same ambition and complementary strengths, and creates an excellent platform for future profitable growth,” Stuchbery added.
Interested investors of The Hanover and others can learn more about the terms of the acquisition by reading the Hanover Insurance Group’s announcement as well as the Chaucer Holdings PLC announcement.
