WORCESTER, Mass., March 12 /PRNewswire-FirstCall/ -- The Hanover Insurance
Group, Inc. (NYSE: THG) today announced that it has entered into a definitive
agreement through which it will divest its non-insurance, premium finance
subsidiary, AMGRO, Inc. and its subsidiaries, to Premium Financing
Specialists, Inc. of Kansas City, Missouri.
(Logo: http://www.newscom.com/cgi-bin/prnh/20051031/NEM023LOGO )
The transaction is expected to close in June, subject to regulatory
reviews and approvals, as well as the satisfaction of certain closing
conditions. Terms were not disclosed.
The two companies said the transaction represents a win for both
organizations.
"This transaction will enable us to focus more of our resources and
capabilities on the continued growth of our core business, helping us achieve
our vision to be the best regional property and casualty insurance company for
winning independent agents," said Frederick H. Eppinger, chief executive
officer of The Hanover Insurance Group. "AMGRO has established a reputation
for providing high-quality products and outstanding service over the past 40
years, and we believe it will be positioned to continue to do so when this
transaction is completed."
Premium Financing Specialists President and Chief Operating Officer
Michael Gallagher said, "We look forward to making AMGRO part of the PFS
organization, and to making all of our product and service capabilities
available to AMGRO's agent partners and their customers."
At year-end 2007, AMGRO represented approximately $6 million of The
Hanover's $2.3 billion in shareholders' equity.
Colonnade Advisors LLC advised The Hanover on 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 40 property and casualty insurers in the United States.
About Premium Financing Specialists
Kansas City, Missouri-based Premium Financing Specialists is an
independent premium finance provider and one of the largest companies of its
kind in the United States. The company originates more premium finance loan
accounts and works with more independent agencies than any other premium
finance lender.
Forward-Looking Statements
Certain statements in this release, including statements regarding the
closing, the expected closing date, and 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".
Contacts:
Investors: Media:
Sujata MutalikMichael F. Buckley
(508) 855-3457 (508) 855-3099
E-mail: smutalik@hanover.com E-mail: mibuckley@hanover.com
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.