Massachusetts-based The Hanover Insurance Group has completed its acquisition of Chaucer Holdings, a specialty Lloyd’s insurance group.
The $474 million deal includes $13 million to be paid in loan notes to shareholders.
“The combination of our companies represents an important milestone in our journey to build a world class property and casualty organization and to significantly enhance our specialty strategy,” said Frederick H. Eppinger, chief executive officer at The Hanover.
Eppinger said he also expects the acquisition to benefit both companies’ businesses and their clients. “Many of our partner agents have reached out to us, expressing their interest in future product opportunities, especially in the areas of marine, energy and aviation,” he said. “The acquisition also will provide Chaucer with new growth opportunities through our selected partner network in the United States.”
Robert Stuchbery, who will continue as chief executive officer of Chaucer, said the transaction would strengthen Chaucer’s financial position and set the stage for continued growth.