China Re finalises Chaucer acquisition
State-owned reinsurance group China Re has completed its 100 percent equity acquisition of Hanover Insurance international Holdings - the holding company of Chaucer Holdings - from The Hanover Insurance Group.
Concurrent acquisitions of Chaucer Dublin and Hanover Australia remain subject to local regulatory approval and are expected to close by the end of the first quarter of 2019.
The deal is part of China Re's “One Core, Three Breakthroughs and Five Cross-overs” 2016 strategy at it seeks to expand its global footprint. China Re also aims to strengthen its core reinsurance business, enhance its global market position and better serve the Belt & Road Initiative.
Following the transaction, China Re plans to transfer its Syndicate 2088 into Chaucer’s Managing Agency, subject to regulatory approval.
“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," said China Re chairman Yuan Linjiang. "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 maximize the opportunities for mutually beneficial growth.”
He Chunlei, vice chairman and president of China Re, commented: “Chaucer is an outstanding performer in the Lloyd’s market run by a well-respected management team with business access to more than 200 countries and regions across the world. The acquisition of Chaucer will expand China Re’s global reach and raise our profile in the international markets.”
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