31 December 2018
China Reinsurance (Group) Corporation (“China Re”) today announces it has completed its 100% equity acquisition of Hanover Insurance International Holdings Ltd (the holding company of “Chaucer Holdings Ltd.”) from The Hanover Insurance Group, Inc. The acquisition of Chaucer Insurance Company DAC (Chaucer Dublin) and Hanover Australia Hold Co Pty Ltd (SLE) remains subject to local regulatory approval and is expected to close by the end of first quarter in 2019.
The acquisition of Chaucer Group (“Chaucer”) is a significant move for China Re which delivers on its “One Core, Three Break-throughs and Five Cross-overs” Strategy launched in 2016 and marks a milestone in the expansion of its global footprint. Chaucer is headquartered in London and is a top quartile player in the Lloyd’s market. It is also a quality global (re)insurer with strong specialty risk capabilities and an excellent track record. China Re entered into a Share Purchase Agreement with The Hanover Insurance Group, Inc. in September 2018 to purchase 100% of Chaucer’s share capital.
The acquisition is expected to benefit China Re from synergies with its existing entities and Chaucer in terms of business platforms, products and technical know-hows. China Re also aims to strengthen its core reinsurance business, enhance its global market position and better serve the Belt & Road Initiative.
Mr. Yuan Linjiang, Chairman of China Re, 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 maximize the opportunities for mutually beneficial growth.”
Mr. 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.”
“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,” said John Fowle, Chief Executive Officer at Chaucer. “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.”
Aon Securities acted as the financial advisor and Sidley Austin LLP provided legal advice to China Re in this transaction.