China Reinsurance (Group) (China Re) has wrapped up the previously announced takeover of the specialty re/insurer business Chaucer from The Hanover Insurance Group.
The deal, first announced in September 2018, was valued at $950m which includes $865m in cash payment from China Re along with a pre-signing dividend of $85m from Chaucer.
Recently, the deal was approved by the European Commission.
The deal will further bolster Chaucer’s specialty capabilities, products and multi platform offering for brokers with the addition of Syndicate 2088. It will also give Chaucer’s clients with access to China Re’s expertise and resources.
As part of the agreement, Chaucer’s senior management team will continue to manage the business under the Chaucer brand.
China Re chairman Yuan Linjiang said: “This is an exciting time for China Re. We are very pleased to have gained the regulatory approvals to complete the acquisition of Chaucer Holdings Limited.
“This deal fits China Re’s strategic positioning of “reinsurance as the core business” and the pursuit of international development in our “One Core, Three Breakthroughs and Five Cross-overs” corporate strategy. We expect to take advantage of Chaucer’s business platforms across the world to maximise the opportunities for mutually beneficial growth.”
Chaucer CEO John Fowle said: “This is an auspicious day for Chaucer, our clients and for China Re as this significantly enhances the strength of our market offering and creates new global opportunities to explore, including those from the Belt and Road initiative.
“The completion of this transaction marks a significant milestone in our history and we are ready to accelerate our business development and growth with the support of China Re.”
Two other parts of the acquisition, the Dublin based Chaucer Insurance Company DAC and Hanover Australia Hold Co Pty Ltd (SLE) are still pending receipt of local regulatory approval; however, they are likely to be completed by the end of first quarter in 2019.