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China Reinsurance (Group) Corporation (China Re) now owns Hanover Insurance International Holdings Ltd, the holding company of London-headquartered Chaucer Holdings Ltd.
Announcing the completion of its 100% equity acquisition, China Re described the swoop as a significant move in line with its strategy launched in 2016. It was in September last year that the state-owned reinsurance group entered into a share purchase agreement with The Hanover Insurance Group, Inc. to purchase the entire share capital of Chaucer.
The acquired entity is a top quartile player in the Lloyd’s market.
“This is an exciting time for China Re,” commented chairman Yuan Linjiang. “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.”
The plan includes transferring Syndicate 2088 into Chaucer’s managing agency.
“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,” noted China Re vice chairman and president He Chunlei. “The acquisition of Chaucer will expand China Re’s global reach and raise our profile in the international markets.”
Chief executive John Fowle said the transaction’s closing marked a significant milestone in Chaucer’s history, adding that they are ready to accelerate business development and growth with China Re’s support. Fowle also pointed to new global opportunities, including those from the Belt and Road initiative.
Meanwhile the acquisition of Chaucer Insurance Company DAC (Chaucer Dublin) and Hanover Australia Hold Co Pty Ltd (SLE) remains subject to local regulatory approval. Completion is expected to take place at the end of this quarter.
