Chaucer exits UK motor business
The Hanover Insurance Group is set to sell Chaucer’s UK motor business to Markerstudy Group, a UK-based insurance provider, for $60 million.
The transaction will be executed through a 100 percent reinsurance arrangement for prior claim liabilities and in-force policies written by this division and the sale of the entities associated with this business.
“The transfer of Chaucer’s UK motor business to Markerstudy will allow our team at Chaucer to direct even more resources to Lloyd’s specialist classes, building even greater expertise in preferred market segments,” said Frederick Eppinger, president and chief executive officer (CEO) of The Hanover.
Robert Stuchbery, president of The Hanover’s international operations and CEO of Chaucer, said: “The UK motor division has made a solid contribution to our success for many years. As a member of the Markerstudy Group of companies, it will benefit both from strategic investments in products and services and affiliation with an organization committed to building its presence in the domestic UK market, setting the stage for the UK motor division’s continued success.”
In 2014, Chaucer’s UK motor business generated net premiums written of $297.7 million and net premiums earned of $305.9 million. This division produced a net combined ratio of 100.7 percent in calendar year 2014.