Worcester, Mass.-based The Hanover Insurance Group, Inc. has agreed to acquire Verlan Holdings, Inc., a Silver Spring, Maryland-based holding company that provides insurance to manufacturers and distributors of chemical-related products.
Terms of the deal were not disclosed.
Verlan’s primary business, Verlan Fire Insurance Co. offers property coverage to small and medium-sized companies that manufacture, store, transport and use chemicals such as paints and solvents. Verlan Fire has served this segment for nearly 40 years, is rated A (Excellent) by A.M. Best Co., and is licensed to do business in 27 states.
A second Verlan Holdings subsidiary, Coatings Industry Services, is a program manager and wholesale agency serving independent agents and brokers whose industrial customers require access to specialized general liability, pollution, umbrella, property, and commercial auto coverages. Coatings Industry Services specializes in chemical and environmental exposures, and places business with admitted and non-admitted carriers that are rated “Excellent” or better by A.M. Best Co.
The transaction is subject to regulatory reviews and approvals, as well as the approval of the shareholders of Verlan Holdings. It is expected to close before the end of the first quarter.
Frederick H. Eppinger, chief executive officer of The Hanover Insurance Group, said the acquisition is part of his company’s plan to expand business option for its agents. “Broadening our specialized product and service capabilities to include Verlan’s unique offering for industrial and chemical-related risks will provide our agent partners with even more tools to grow their businesses, while improving our own competitive position and delivering greater value to our shareholders,” he said.
The Verlan announcement follows The Hanover’s completed acquisition of Professionals Direct, Inc. in September. Through that transaction, The Hanover added professional liability insurance for small and mid-sized law practices to its commercial and specialty products.
Source: The Hanover Insurance Group, Inc.
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