ProgramBusiness
 
  


Loading LiveCycle Banners.
  1. News Articles
  2. Related News Articles
  3. Comments
News Article Details

Hanover Announces Plans to Acquire Lloyd's of London Insurer Chaucer for $510M

Back | A- | A+
 Email This     Print     Subscribe


Posted on 20 Apr 2011

Property and casualty insurer Hanover said today that it plans to acquire Lloyd’s of London insurer Chaucer Holdings in a deal valued at 313 million pounds, or US$510 million.

The 56 pence-per-share offer, which includes an earlier 2.7 pence per share dividend announced by Chaucer, values Chaucer at roughly 1.26 times its estimated tangible book value on December 31, Hanover said in a statement today.

London-based Chaucer, which has been hit by all the natural disaster losses of late, underwrites business in a number of insurance classes, including marine, energy, UK motor and nuclear.

Chaucer said earlier that earthquakes this year in Japan and New Zealand, as well as floods in Australia, could set the company back by as much as 62 million pounds in insurance claims. In 2010, Chaucer reported net earned premium of 589 million pounds ($925 million) and total assets of 2.3 billion pounds ($3.7 billion).

The deal is expected to give Hanover expanded market presence, and advance the company’s specialty business, specifically in energy, marine, aviation and other risks.

“Access to the Lloyd’s market would enable us to further strengthen our capabilities, provide many of our larger winning agents with a valued market for complex, cross-border risks, and strengthen our market position as the best partner for winning agents in the U.S.,” said Hanover CEO Frederick H. Eppinger.


Comments

Post a Comment
If you are a Storefront / Tradingfloor user, click here to login.
Note: As a guest user, please fill out the form below to post a comment.
Post your comments here.
Name :
Email Address :
Captcha :
Comments :
Character left : 2000