Hanover To Sell Last Life Line

The Hanover Insurance Group Inc. has come to a $220 million agreement to sell the last of its life insurance business to the Commonwealth Annuity and Life Insurance Co.

The sale of the First Allmerica Financial Life Insurance Co. completes the divestiture of Hanover's life insurance business, which the company has been selling off since 2002. The First Allmerica sale, while expected to provide Hanover with net proceeds of about $220 million, will result in a net after-tax loss of $66 million. That loss will be recorded in the company's second quarter results.

Hanover is also asking the state Division of Insurance to approve a dividend of about $160 million from the sale.

The actual dividend and purchase price for First Allmerica will be determined at closing, the company said.