The total consideration paid for this transaction is approximately $474 million, including approximately $13 million, to be paid in the form of loan notes to shareholders who have elected to receive such loan notes in lieu of cash.
"We are pleased to complete this transaction and welcome the Chaucer team to our organization," said Frederick H. Eppinger, chief executive officer at
The Hanover. "As we swiftly move through the integration process and begin to advance our long-term plans, we continue to be impressed with Chaucer's management and staff, and with their commitment to disciplined underwriting and risk management.
"The combination of our companies represents an important milestone in our journey to build a world class property and casualty organization and to significantly enhance our specialty strategy," Eppinger said. "We fully expect this acquisition to be accretive to our earnings, while providing our company with greater scale, more geographic diversification, an expanded market presence, and additional underwriting and risk management expertise."
Eppinger said he also expects the acquisition to benefit both companies' businesses and their clients.
"Many of our partner agents have reached out to us, expressing their interest in future product opportunities, especially in the areas of marine, energy and aviation," he said. "The acquisition also will provide Chaucer with new growth opportunities through our selected partner network in the United States."
Robert Stuchbery, who will continue as chief executive officer of Chaucer, said the transaction would strengthen Chaucer's financial position and set the stage for continued growth.
"Chaucer employees are very pleased to be joining The Hanover," said Stuchbery. "This transaction combines two strong organizations, creating an environment in which our talented people can continue to grow and develop fulfilling careers.
"With the added strength and stability gained through this transaction," Stuchbery added, "we will continue to focus on advancing our strategy and building on our strong market position as the Lloyd’s specialist insurer of choice in our areas of expertise."