WORCESTER, Mass., June 25 /PRNewswire-FirstCall/ -- The Hanover Insurance
Group, Inc. (NYSE: THG) today announced that it has entered into a definitive
agreement through which it will acquire Professionals Direct, Inc.
(OTC Bulletin Board: PFLD) for $23.2 million.
(Logo: http://www.newscom.com/cgi-bin/prnh/20051031/NEM023LOGO )
Professionals Direct is the Michigan-based holding company for the
Professionals Direct organization, a premier provider of professional
liability insurance for small and mid-sized law practices. Through its various
subsidiaries, the company generates annual written premium of approximately
$30 million. Professionals Direct is rated "A-" (Excellent) by A.M. Best
Company.
The transaction has been approved by the boards of directors of both
companies, and is subject to regulatory reviews and approvals, as well as the
approval of Professionals Direct's shareholders. It is expected to close in
the fourth quarter.
"We are very pleased to have the opportunity to add Professionals Direct
and its specialized capability to our organization," said Frederick H.
Eppinger, chief executive officer of The Hanover Insurance Group. "This
transaction will enable us to broaden our product and service capabilities and
to further strengthen our competitive position, delivering even greater value
to our agent partners and our shareholders."
"We have made tremendous investments in our business over the past nearly
four years, positioning our company to be the best partner for winning
independent agents in our markets," Eppinger said. "Today, we offer our agent
partners a wide range of personal and commercial lines products, including a
robust specialty insurance portfolio that is unique for a company of our size.
With the addition of Professionals Direct, we will once again expand our
specialty capabilities, helping our agent partners meet more of their
customers' needs and grow their businesses."
For Professionals Direct, the transaction represents an opportunity to
meaningfully grow its business and its presence in the lawyers professional
liability market.
"We are very pleased to be joining The Hanover organization," said Stephen
Tuuk, chief executive officer of Professionals Direct. "We are proud of what
we have achieved as an independent company, establishing Professionals Direct
as a successful and highly-regarded provider of lawyers professional liability
insurance."
"Given our product and underwriting expertise, we are excited to have the
opportunity to leverage The Hanover's experience, resources, and independent
agency network to take our franchise to the next level," Tuuk said. "We have
every confidence we will continue to grow our business and add value to The
Hanover and its agent partners."
Philo Smith & Co. acted as exclusive financial advisor to Professionals
Direct in the transaction.
About The Hanover
The Hanover Insurance Group, Inc. (NYSE: THG), based in Worcester, Mass.,
is the holding company for a group of insurers that includes The Hanover
Insurance Company, also based in Worcester; Citizens Insurance Company of
America, headquartered in Howell, Mich., and their affiliates. The Hanover
offers a wide range of property and casualty products and services to
individuals, families and businesses through an extensive network of
independent agents, and has been meeting its obligations to its agent partners
and their customers for more than 150 years. Taken as a group, The Hanover
ranks among the top 35 property and casualty insurers in the United States.
About Professionals Direct
Professionals Direct, Inc. (OTC Bulletin Board: PFLD), based in Grand
Rapids, Michigan is the holding company for a Professionals Direct Insurance
Services and Professionals Direct Insurance Company. Professionals Direct
provides lawyers professionals liability insurance in more in 36 states
through its various programs and through various independent producers.
Founded in 1987 as Michigan Lawyers Mutual Insurance Company, Professionals
Direct reorganized in 2001 as a stock organization and expanded to achieve a
national presence in its professional liability niche.
CONTACTS:
Investor Relations Media Relations
Sujata MutalikMichael Buckleysmutalik@hanover.commibuckley@hanover.com
(508) 855-3457 (508) 855-3099
SOURCE Hanover Insurance Group, Inc.
Contact: Investors, Sujata Mutalik, +1-508-855-3457, smutalik@hanover.com, or Media, Michael Buckley, +1-508-855-3099, mibuckley@hanover.com, both for Hanover Insurance Group, Inc.