Hanover Raises Loss Estimate On Life Insurance Sale
The Hanover Insurance Group will pay $8 million more to get rid of its last life insurance business than previously estimated, the company said today.
Hanover said it previously reported a net after-tax loss of about $72 million on the sale of First Allmerica Financial Life Insurance Co. through Sept. 30, 2008. The extra $8 million in the divestiture came from "investment-related purchase price adjustments." The final values for purchase price, proceeds and net after-tax loss are subject to adjustment as of Dec. 31, 2008.
The company said it will provide details of the adjusted transaction when it issues its forth quarter results.
By finalizing the sale of the life insurance company to Commonwealth Annuity and Life Insurance Co., a Goldman Sachs company, Hanover completes the process of exiting the life insurance business, which it began in 2002. The company said the shift will allow it to focus on its core property and casualty insurance business.
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