Hanover sold First Allmerica Financial Life Insurance to Commonwealth Annuity and Life Insurance
The Hanover Insurance Group has sold its remaining run-off life insurance business, the First Allmerica Financial Life Insurance Company, to the Commonwealth Annuity and Life Insurance Company, a Goldman Sachs subsidiary.
The company currently estimates that an additional loss of approximately
$8 million will be recorded in the quarter ended December 31, 2008, principally resulting from investment-related purchase price adjustments. The company will provide details of the adjusted transaction effects when it issues its fourth quarter results.
Frederick Eppinger, CEO of the Hanover Insurance Group, said: We are very pleased to complete the divestiture of our run-off life business, concluding a process that began in 2002. This transaction significantly enhances our liquidity position and financial flexibility.
This transaction significantly enhances our liquidity position and financial flexibility. It frees capital that previously was tied up in our life business and enables us to use that capital more effectively, further strengthening our property and casualty business and positioning us to improve our overall return on equity.
The Hanover Insurance Group is the holding company for a group of insurers that includes The Hanover Insurance Company. The Hanover offers a wide range of property and casualty products and services to individuals, families and businesses through a network of independent agents.