The Hanover Insurance Group, Inc. Announces Agreement to Sell Chaucer for Total Proceeds of $950 million

By a News Reporter-Staff News Editor at Insurance Weekly News -- The Hanover Insurance Group, Inc. (NYSE: THG) announced it has entered into a definitive agreement to sell the entities comprising Chaucer, its Lloyd's-focused international specialty business, to China Reinsurance (Group) Corporation ("China Re"), for total proceeds of $950 million, including cash consideration from China Re of $865 million and a pre-signing dividend from Chaucer of $85 million, received in the second quarter of this year. The transaction will position The Hanover to continue the successful expansion of its domestic business, building out its strategic capabilities for its partners and customers.

The transaction is anticipated to close late this year or in the first quarter of next year, subject to regulatory approvals and other customary closing conditions. Tangible equity of Chaucer(1) as of June 30, 2018, was $520.0 million, net of $73.2 million of goodwill and intangible assets. The total consideration, adjusted for the pre-signing dividend, represents a multiple of 1.66 times Chaucer's tangible equity as of June 30, 2018. The transaction is structured so that, subject to certain exceptions, the risks and rewards of Chaucer's business from April 1, 2018 until closing, are transferred to China Re.

Keywords for this news article include: Asia, China, Business, Insurance Companies, The Hanover Insurance Group Inc.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2018, NewsRx LLC