WORCESTER, Mass., Jan. 14 /PRNewswire-FirstCall/ -- The Hanover Insurance
Group, Inc. (NYSE: THG) today announced that it has entered into a definitive
agreement through which it will acquire Verlan Holdings, Inc.
(Logo: http://www.newscom.com/cgi-bin/prnh/20051031/NEM023LOGO )
Verlan Holdings, Inc. is the Silver Spring, Maryland-based holding company
that provides insurance to manufacturers and distributors of chemical-related
products. Its primary business, Verlan Fire Insurance Company, offers property
coverage to small and medium-sized companies that manufacture, store,
transport and use chemicals such as paints and solvents. Verlan Fire has
served this segment for nearly 40 years and is recognized for its expertise in
providing insurance to companies that are classified as highly protected
risks. Verlan Fire is rated A (Excellent) by A.M. Best Company, and is
licensed to do business in 27 states.
A second Verlan Holdings subsidiary, Coatings Industry Services, is a
program manager and wholesale agency serving independent agents and brokers
whose industrial customers require access to specialized general liability,
pollution, umbrella, property, and commercial auto coverages. Coatings
Industry Services specializes in chemical and environmental exposures, and
places business with admitted and non-admitted carriers that are rated
"Excellent" or better by A.M. Best Company.
The transaction is subject to regulatory reviews and approvals, as well as
the approval of the shareholders of Verlan Holdings. It is expected to close
before the end of the first quarter.
"We are very pleased to add Verlan to our organization and to offer its
specialized capabilities to our valued agent partners, delivering on our
commitment to help them meet a wide range of their customers' needs," said
Frederick H. Eppinger, chief executive officer of The Hanover Insurance Group.
"Broadening our specialized product and service capabilities to include
Verlan's unique offering for industrial and chemical-related risks will
provide our agent partners with even more tools to grow their businesses,
while improving our own competitive position and delivering greater value to
our shareholders."
Today's announcement follows The Hanover's completed acquisition of
Professionals Direct, Inc. in September. Through that transaction, The Hanover
added a distinctive offering of professional liability insurance for small and
mid-sized law practices to its already strong suite of commercial and
specialty products.
"This latest acquisition is one more example of the product and service
investments we have made -and will continue to make- to be the best partner
for growing independent agents," Eppinger said.
For Verlan, the transaction represents an opportunity to accelerate the
growth of its business through The Hanover's network of independent agents.
"We are excited to be joining The Hanover Insurance Group and believe this
transaction represents a great opportunity for our policyholders, agents and
employees," said John Johnson, president of Verlan Holdings. "Over the last 38
years, we have accomplished a great deal and established Verlan as a highly-
successful provider of insurance to highly protected risks for a broadening
array of industries beginning, historically, with the paint and coatings
industry. At the same time, we are pleased to have the opportunity to leverage
The Hanover's experience, resources, and independent agency network to take
our franchise even further. Given the complementary nature of our product and
underwriting expertise, we have every confidence that we will continue to grow
our business through this 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, Michigan, 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., based 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 www.hanover.com under
"Investors".
FOR THE HANOVER CONTACT:
Investor Relations Media Relations
Sujata MutalikMichael F. Buckleysmutalik@hanover.commibuckley@hanover.com
(508) 855-3457 (508) 855-3099
FOR VERLAN CONTACT:
John W. Johnsonjohn@verlan.com
(301) 495-7722
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.; or John W. Johnson of Verlan Holdings, Inc., +1-301-495-7722, john@verlan.com