WORCESTER, Mass., Dec. 21, 2017 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today announced Chaucer, the company's international specialty insurance group, has sponsored the formation of a reinsurance sidecar to provide collateralized capacity for Chaucer Syndicate 1084's global property reinsurance portfolio in 2018.
Bermuda-based Thopas Re Ltd., a newly formed segregated account company, will lead the transaction, which includes $95 million of third-party investor capital. Thopas Re has entered into an exclusive quota share agreement with Chaucer to reinsure a share of Chaucer's U.S. and international property catastrophe portfolio, beginning January 1, 2018.
TigerRisk Capital Markets & Advisory acted as sole structuring and placement agent on the transaction. Mayer Brown LLP and Appleby (Bermuda) Limited provided legal counsel.
"The creation of a reinsurance sidecar provides Chaucer and The Hanover with another means of leveraging our strong underwriting capabilities, and is a first step in creating new relationships with capital market partners," said Jeffrey Farber, executive vice president and chief financial officer at The Hanover.
"This is a key development in the evolution of our business," said John Fowle, chief executive officer at Chaucer, "providing us with greater scope and flexibility to support the evolving needs of our clients."
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions in a dynamic world. The Hanover distributes its products through a select group of independent agents and brokers. Together with its agents, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. Through its international member company, Chaucer, The Hanover also underwrites business at Lloyd's of London in several major insurance and reinsurance classes, including marine, property and energy. For more information, please visit hanover.com.
SOURCE The Hanover Insurance Group, Inc.