The Hanover Insurance Group, Inc. (NYSE: THG) today announced that it has entered into a definitive agreement through which it will divest its premium finance subsidiary, AMGRO, Inc. and its subsidiaries, to Premium Financing Specialists, Inc. of Kansas City, Missouri.
The transaction is expected to close in June, subject to regulatory reviews and approvals, as well as the satisfaction of certain closing conditions. Terms were not disclosed.
The two companies said the transaction represents a win for both organizations. AMGRO is the tenth largest commercial lines premium finance company in the United States. PFS is the second largest premium finance company.
“This transaction will enable us to focus more of our resources and capabilities on the continued growth of our core business, helping us achieve our vision to be the best regional property and casualty insurance company for winning independent agents,” said Frederick H. Eppinger, chief executive officer of The Hanover Insurance Group. “AMGRO has established a reputation for providing high-quality products and outstanding service over the past 40 years, and we believe it will be positioned to continue to do so when this transaction is completed.”
Premium Financing Specialists President and Chief Operating Officer Michael Gallagher said, “We look forward to making AMGRO part of the PFS organization and to making all of our product and service capabilities available to AMGRO’s agent partners and their customers.”
Colonnade Advisors LLC advised The Hanover and AMGRO on the transaction.
The Hanover Insurance Group, Inc. (NYSE: THG), based in Worcester, Mass., is the holding company for a group of insurers that includes The Hanover Insurance Company, also based in Worcester; Citizens Insurance Company of America, headquartered in Howell, Mich., and their affiliates. The Hanover offers a wide range of property and casualty products and services to individuals, families and businesses through an extensive network of independent agents, and has been meeting its obligations to its agent partners and their customers for more than 150 years. Taken as a group, The Hanover ranks among the top 40 property and casualty insurers in the United States.
Kansas City, Missouri-based Premium Financing Specialists is an independent premium finance provider and one of the largest companies of its kind in the United States. The company originates more premium finance loan accounts and works with more independent agencies than any other premium finance lender.