China Re completes Australia and Ireland Chaucer dealsApril 15 2019 by InsuranceAsia News Staff
China Re has completed its acquisition of Chaucer from Hanover Insurance Group after closing transactions for two Chaucer-related companies in Ireland and Australia, Chaucer Insurance Company and SLE Holdings respectively.
SLE Holdings is a Sydney based Lloyd’s managing general agent while Dublin based Chaucer Insurance can write specialty international business.
The transactions, which were awaiting regulatory approval, have cost the reinsurer US$41 million to complete.
Overall China Re paid US$950 million for Chaucer. The deal was made up of a cash consideration of US$865 million paid by Hong Kong listed China Re, as well as a pre-signing dividend from Chaucer of US$85 million. Hanover has announced a US$200 million special dividend in addition to a US$600 million buyback as a result of the deal.
China Re expects to benefit from synergies between its existing entities and Chaucer, in terms of business platforms, products and technical expertise. The Beijing-headquartered firm is looking to leverage its reinsurance business, enhance its global market position and increase its association with China’s ambitious Belt and Road project.
John Roche, president and chief executive at Hanover Insurance Group, commented: “With the sale of the two entities, we have completed the sale of our Lloyd’s international specialty business to China Re. 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.”
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