Hanover to buy Lloyd's of London insurer Chaucer for $510 million

LONDON—Hanover Insurance Group Inc. has agreed to buy Lloyd's of London insurer Chaucer Holdings P.L.C. for about £313 million ($510 million), the companies announced Wednesday.

Worcester, Mass.-based property/casualty insurer Hanover said that several large investors in Chaucer have backed the deal, and London-based Chaucer noted in its statement that directors of the Lloyd's insurer will recommend that shareholders accept the Hanover offer.

Hanover President and CEO Frederick H. Eppinger said in the company's statement that "Chaucer would represent a significant step forward in The Hanover's journey to build a world-class property and casualty company...Chaucer would enable us to further advance our specialty strategy, given its recognized expertise in underwriting energy, marine and aviation risks.”