China Re announces acquisition of Chaucer Group
China Reinsurance (Group) Corporation (“China Re”) has agreed to acquire Chaucer Group from Hanover Insurance Group Inc. for a consideration of US$865m. The transaction comprises Hanover Insurance International Holdings Ltd, Chaucer Insurance Company DAC and Hanover Australia HoldCo Pty Ltd and is subject to shareholder and regulatory approval.
The acquisition of Chaucer, with its diverse portfolio and strong expert team worldwide, will accelerate China Re’s overseas deployment in support of its international development strategy. As well as boosting overseas business volumes, Chaucer will enhance China Re’s underwriting and technical expertise, crucial to successfully building out its business and further diversifying its portfolio worldwide.
China Re and Chaucer’s portfolios are highly complementary in terms of territory and business mix. Chaucer has established a leading position in various specialty lines and is consistently a top tier performer at Lloyd’s, delivering outstanding business performance, which will enhance China Re’s operating results.
YUAN Linjiang, Chairman of China Re said: “The acquisition of Chaucer Group by China Re represents a significant milestone in our international development, as well as the next step following the establishment of China Re Syndicate 2088 at Lloyd’s and the Singapore Branch. Thecombination of China Re’s financial strength and access to capital will help consolidate Chaucer’s position and create new development opportunities.”
HE Chunlei, President of China Re said: “As Asia’s leading reinsurance group pursuing international development, China Re regards Chaucer as an ideal partner. We are delighted to be acquiring a top quartile performer in the Lloyd’s market and respect senior management’s achievements to date in growing the business to this point. We look forward to working closely with John Fowle, Chaucer CEO, and the management team.”
ENDS
Investor call details
14 September 8:30am London time / 3:30pm Hong Kong /Beijing time
To view the presentation slides, please visit: http://eng.chinare.com.cn/
For those interested in joining the call, please send your name, company name and contact details via email to Sarah Shephard (sarah.shephard@haggie.co.uk) and Johanna Bernhard (johanna.bernhard@haggie.co.uk) at Haggie Partners.
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Haggie Partners – +44(0)207 562 4444
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Notes to editors
About China Re
China Re ranks first in Asia and eighth globally by reinsurance premium income, with premium topping US$16 billion. China Re operates three principal business segments, namely property and casualty reinsurance, life and health reinsurance, and primary property and casualty insurance. It owns three international underwriting platforms, namely International Business Department in Beijing, China Re Syndicate 2088 at Lloyd’s and its Singapore Branch. China Re is currently rated “A (Excellent)” by A.M. Best and “A” by S&P Global Ratings. China Re is a state-owned financial enterprise controlled by Central Huijin and Ministry of Finance of China and is listed on the Hong Kong Stock Exchange (HK: 1508). In addition, China Re chairs the China Nuclear Insurance Pool, is the management office of China Agricultural Reinsurance Pool and a council member and lead reinsurer of China Residential Earthquake Insurance Pool.
About Chaucer
Chaucer is a leading specialty insurance group providing clients with proven smart risk solutions for underwriting and claims. Our enterprising and trusted experts offer market leading cross class capabilities, empowered decision-making and a tailored approach. We provide a first class claims service and most importantly, pay valid claims promptly.
Headquarters in London, with international hubs for Europe, MENA, Latin America and Asia protecting clients in over 200 countries and territories worldwide. We provide clients the flexibility of both Lloyd’s, and the company market through Chaucer Dublin.
Through Lloyd’s, our clients enjoy strong financial security with every policy supported by ratings from A.M. Best, Standard & Poor’s and Fitch Ratings. Chaucer Dublin has an A- (excellent) rating from Standard & Poor’s.
About Lloyd’s of London
The Lloyd’s insurance market is headquartered in London and originated from Edward Lloyd’s coffee house more than 300 years ago. Lloyd’s began with marine insurance, and progressively developed into the world’s largest specialty (re)insurance market.
Lloyd’s is an insurance corporation comprised of corporate members and a few individual members. Lloyd’s managing agents together with its members are collectively referred to as “the Lloyd’s market”. Members of Lloyd’s carry out businesses by forming “Syndicates”. Currently, there are over 50 managing agents and over 80 Syndicates, conducting businesses in more than 200 countries and regions globally.
The major advantages of Lloyd’s market also include: first-rate financial strength ratings and the protection of the Central Fund; a business licence and service network that covers most regions around the globe; and the concentration of expertise, innovation and underwriting.
About Hanover Insurance Group
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions in a dynamic world. The Hanover distributes its products through a select group of independent agents and brokers. Together with its agents, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.