Business Moves

The Hanover, Chaucer

A half-billion dollar deal that would make Lloyd’s insurer Chaucer part of Massachusetts-based The Hanover is in the works.

Terms of the transaction involve a cash-for-stock swap valued at $510 million, which The Hanover said it plans to pay for with cash on hand as well as a $250 million debt issue to fund the purchase.

Chaucer is one of Lloyd’s 10 largest MGAs and underwrites specialty insurance in marine, energy, non-marine and aviation, as well as auto insurance in the United Kingdom. Chaucer reported gross written premium of approximately $1.3 billion in 2010 and net earned premium of around $925 million. The London-based company has regional operations in Whitstable, England and international operations in Houston, Singapore, Buenos Aires and Copenhagen.

Hanover CEO Frederick H. Eppinger said Chaucer’s expertise in specialty markets and global distribution complements The Hanover’s existing presence and opens several new roads for its growth. Eppinger called the deal “a significant step forward in our journey to build a world class property and casualty company.

Eppinger said the company’s brokers and agents are increasingly focused on specialty markets and product lines with unusual or international exposures.

Keystone

Keystone Insurers Group is expanding its presence in Tennessee by teaming up with four new franchise partners.

E.B. Thom & Sons in Tullahoma, McIntire & Associates Insurance Inc. in Cleveland, Porch-Stribling-Webb Inc. in Waverly, and Art E. Gernt in Crossville have all joined Keystone, significantly expanding the group’s involvement in Tennessee’s market, according to KIG Tennessee State Vice President Doug Dukes.

KIG is owned by its employees and franchise partners in Pennsylvania, North Carolina, Virginia, Indiana, Ohio, Kentucky, and Tennessee.

The Wright Group Services, Haylor Freyer and Coon

Denver-based The Wright Group Services has purchased the assets of the Bloomfield, Colorado office of Haylor Freyer and Coon (HFC) for an undisclosed price.

New York-based Haylor, Freyer & Coon Inc. closed the office last month. The agency said it plans to service clientele both within the United States and internationally from its headquarters located in Syracuse, N.Y.

Mike Dribnak, who leads the HFC Colorado team along with his associates, will join The Wright Group team and remain in Colorado.