Hanover completes $41M sale of specialty insurance subsidiary

Photo/Grant Welker Worcester's Hanover Insurance Group headquarters

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By Zachary Comeau

The Hanover Insurance Group, Worcester’s only publicly traded company, has completed the sale of a subsidiary’s Irish and Australian entities for $41 million.

The sale of the company’s specialty insurance business Chaucer was first announced in September for $950 million, but the final proceeds are about $10 million less. The company announced the completion Thursday.

The sale of the business to China Reinsurance Corp. included $779 million in cash and up to $41 million once the sale of the Irish and Australian entities were approved by regulators.

The deal includes contingencies of up to $25 million and an $85 million pre-signing dividend from Chaucer.

In a statement, CEO John Roche said the sale completes divestiture of the company’s Lloyd’s international specialty business.

"We are confident our exclusive focus on our proven and distinctive domestic business will enable us to deliver significant value for our shareholders and other stakeholders,” Roche said.

The news comes as the company announced a new digital platform, Insurago, intended to enable independent agents to acquire new customers.

According to the company, Insurago, powered by CoverWallet, enables agents to place their own personalized link on their agency website or social media channels, allowing customers to easily quote and issue an insurance policy through Hanover.