Posted on 05 Jan 2009
The Hanover Insurance Group, based in Worcester, Mass, has completed the sale of its remaining run-off life insurance business, First Allmerica Financial Life Insurance Company to Commonwealth Annuity and Life Insurance Company, a Goldman Sachs company.
"We are very pleased to complete the divestiture of our run-off life business, concluding a process that began in 2002," says Frederick H. Eppinger, chief executive officer of The Hanover Insurance Group. "This transaction significantly enhances our liquidity position and financial flexibility. It frees capital that previously was tied up in our life business and enables us to use that capital more effectively, further strengthening our property and casualty business and positioning us to improve our overall return on equity."