Increase provides for aggregate repurchases of up to $300m of its common stock

Hanover Insurance Group has announced a $100m increase to the its existing share repurchase program. The program allows for the repurchase of up to $200m of the company’s outstanding common stock. The increase will provide for aggregate repurchases under the program of up to $300m of the company’s common stock. As of December 7, 2009, the company had utilized approximately $108m of this authorization.

The company said that under the stock buy back program, it may repurchase its common stock from time to time, in amounts, at prices. Its repurchases may be executed using open market purchases, privately negotiated transactions, accelerated repurchase programs or other transactions.

The program does not stipulate that the company purchase any specific number of shares or make purchases by a certain time and date. It also expects to establish from time to time 10b5-1 trading plans that will provide flexibility as it buys back its shares.

According to Hanover Insurance, it has used a portion of this authorization to effect the repurchase of 2,418,000 shares of the its common stock at a price per share of approximately $41.34, subject to adjustment, pursuant to an accelerated share repurchase agreement, dated December 8, 2009, with Barclays Bank acting through its agent Barclays Capital, for a total purchase price of approximately $100.6m.

Upon completion of the ASR Agreement, the company will receive or be required to remit a purchase price adjustment, payable, at its option, in stock or cash, based on a volume-weighted average price for common stock during a three- to five-month period as stated in the agreement. After the execution of the ASR Agreement, the company has utilized a total of approximately $209m of the $300m authorization.