After receiving local regulatory approval, China Re has completed the acquisition of a Chaucer-related company in Australia, SLE Holdings on 11 April 2019. Chaucer is part of The Hanover Insurance Group, a holding company for several property and casualty insurers.
SLE Holdings is an underwriting agency and Lloyd’s cover holder that writes specialty property and casualty products focusing on the sports, leisure and entertainment markets. It has now become a subsidiary of China Re.
On 15 February this year, China Re also completed its acquisition of another Chaucer-related company in Dublin named Chaucer Insurance Company which writes international specialty insurance and reinsurance business. Total proceeds from both of these recent acquisitions are stated as $41m.
"With the sale of these two entities, we have completed the sale of our Lloyd's international specialty business to China Re. We are confident our exclusive focus on our proven and distinctive domestic business will enable us to deliver significant value for our shareholders and other stakeholders," said The Hanover Insurance Group president and CEO John Roche.
China Re and The Hanover Insurance Group entered into a sale and purchase agreement on 13 September last year whereby China Re conditionally agreed to purchase 100% equity interest of Chaucer, at a consideration of $865m.
China Re also announced that it changed the name of The Hanover Insurance International to China Re International after its acquisition was completed on 28 December 2018. The name of the newly-acquired SLE in Australia will be changed accordingly at a later date.
Aon Securities, the investment banking division of professional services firm Aon, served as the sole buy-side mergers and acquisitions advisor to this acquisition.