The Hanover Insurance Group heads into 2019 free of its Chaucer international specialty business.
That’s thanks to China Reinsurance Group, which closed its purchase of the division on Dec. 28, according to announcements from both companies. In the end, The Hanover stands to get $930 million to $940 million from the sale.
The Hanover first announced in September that China Re was buying Chaucer, its Lloyd’s focused international specialty arm, enabling it to focus more on the successful expansion of its domestic business.
The Hanover CEO John Roche, in prepared remarks issued after the sale closing, said the Massachusetts-based insurer will leverage its “strong agency relationships” to invest in areas including personal lines, small commercial business, targeted middle market industries and a growing specialty lines business.
Roche added the company will also double down on innovation in all of its business lines. Back in September, Roche stated that some of the proceeds from the Chaucer sale could be used to fuel organic growth, pursue select acquisitions and hire top talent from rivals.
China Re said the Chaucer acquisition will help propel the ongoing expansion of its global footprint and help focus on reinsurance as its core business.
Yuan Linjiang, chairman of China Re, noted in prepared remarks that the Chaucer deal is part of its corporate strategy dubbed “One Core, Three Breakthroughs and Five Cross-overs.”
*Material from an Insurance Journal article was used for this story.
Sources: Hanover Insurance and China Re