The Hanover Insurance Group has secured the acquisition of London-based Chaucer in a deal worth £313 million.
The Hanover Insurance Group has secured the acquisition of London-based Chaucer in a deal worth £313 million.
Chaucer is an insurer and reinsurer in sectors such as marine, energy, UK motor and nuclear. The deal equates to a price of 56 pence per share, 1.3 times the estimated book value on 31 December.
The UK firm recently estimated that it has suffered losses of £59 million in the first quarter of 2011, attributed largely to the earthquakes in Japan and New Zealand and flooding in New Zealand.
Hanover, which is headquartered in Massachusetts in the US, is a holding company for a group of property and casualty insurance companies. It has made the acquisition through its subsidiary, 440 Tessera.
Frederick Eppinger, president and CEO of The Hanover, reveals that the deal will allow Hanover to advance its ‘speciality strategy’ by utilising Chaucer’s expertise in underwriting energy, marine and aviation risks.’
