Hanover Insurance explores sale of Lloyd’s unit

Hanover Insurance Group Inc. on Wednesday said it is reviewing strategic alternatives, including possibly selling London-based Chaucer Holdings P.L.C., its international specialty insurance business.

The Worcester, Massachusetts-based property/casualty insurer said in a brief statement that it had retained Goldman Sachs & Co. L.L.C. to serve as its adviser and declined additional comment.

Hanover bought Chaucer, a Lloyd’s of London insurer and reinsurer, for about $500 million in 2011. It operates two syndicates at Lloyd’s offering marine, aviation, energy, liability, property, political risk and nuclear insurance and reinsurance coverage.

Chaucer reported $849.1 million in net premiums written in 2017, a 4% increase over 2016, but its operating income in the catastrophe-hit year slumped to $7.1 million in 2017 from $126.8 million in 2016.

Chaucer reported a 2017 combined ratio of 105.3%, compared with 90.4% in 2016.