News Details

The Hanover Insurance Group Completes Acquisition of Verlan Holdings, Inc.

March 14, 2008

- Transaction Expands The Hanover's Specialty Lines Capabilities -

- Creates Growth Opportunities for Company's Agent Partners -

WORCESTER, Mass., March 14 /PRNewswire-FirstCall/ -- The Hanover Insurance Group, Inc. (NYSE: THG) announced today that it has completed the previously announced acquisition of Verlan Holdings, Inc. of Silver Spring, Maryland, for $29 million.

(Logo: http://www.newscom.com/cgi-bin/prnh/20051031/NEM023LOGO )

"We are pleased to add Verlan's specialized product and service capabilities to our commercial lines portfolio, enhancing our ability to deliver distinctive value to our agent partners and shareholders," said Frederick H. Eppinger, chief executive officer of The Hanover Insurance Group.

"This acquisition is consistent with our company's commitment to invest in our business-our people, products and services-all with the purpose of providing our agent partners with the tools they need to serve their customers and grow their businesses, as we compete and win together over the long term," Eppinger said.

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 40 property and casualty insurers in the United States.

About Verlan

Verlan Holdings, Inc., headquartered in Silver Spring, Maryland, is the holding company for Verlan Fire Insurance Company, headquartered in Silver Spring, Maryland, and Coatings Industry Services, Inc., headquartered in Owings Mills, Maryland. Verlan Fire Insurance Company is a property insurer providing coverage to industrial risks which are generally classified as highly protected risks. Coatings Industry Services, Inc. is a program manager and wholesale agency offering a wide variety of property and casualty coverages to the same types of industrial risks served by Verlan Fire Insurance Company.

Forward-Looking Statements

Certain statements in this release, including statements regarding the expected benefits of the pending transaction, may be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Use of the words "believes," "anticipates," "expects," "projections," "outlook," "should," "plan," "guidance" and similar expressions is intended to identify forward-looking statements. The Company cautions investors that any such forward-looking statements are not guarantees of future performance, and actual results could differ materially. Investors are directed to consider the risks and uncertainties in its business that may affect future performance and that are discussed in readily available documents, including the Company's annual report and other documents filed by The Hanover with the Securities and Exchange Commission and which are also available at http://www.hanover.com under "Investors."

    CONTACT INFORMATION

    Investors:
    Sujata Mutalik
    E-mail: smutalik@hanover.com
    1-508-855-3457

    Media:
    Michael F. Buckley
    E-mail: mibuckley@hanover.com
    1-508-855-3099

SOURCE The Hanover Insurance Group, Inc.

Contact: Investors: Sujata Mutalik, +1-508-855-3457, smutalik@hanover.com, or Media: Michael F. Buckley, +1-508-855-3099, mibuckley@hanover.com, both of The Hanover Insurance Group, Inc.