Hanover To Acquire Verlan Holdings

Worcester, Mass.-based insurer The Hanover Insurance Group Inc. announced it has agreed to acquire Verlan Holdings Inc. Terms of the deal were not released.

Hanover said Silver Spring, Md.-based Verlan Holdings Inc. is a holding company that provides insurance to manufacturers and distributors of chemical-related products.

The firm's primary business, Verlan Fire Insurance Company, offers property coverage to small and medium-sized companies that manufacture, store, transport and use chemicals such as paints and solvents. The company has served this segment for nearly 40 years and is recognized for its expertise in providing insurance to companies that are classified as highly protected risks.

Verlan Fire is rated “A (Excellent)” by A.M. Best Company and is licensed to do business in 27 states. A.M. Best said its rating was unchanged on word of the news.

According to Highline Data, an affiliate of National Underwriter, in 2006 Verlan reported net written premiums of $9.64 million and net income of $1.87 million.

A second Verlan Holdings subsidiary, Coatings Industry Services, is a program manager and wholesale agency serving independent agents and brokers whose industrial customers require access to specialized general liability, pollution, umbrella, property and commercial auto coverages. It specializes in chemical and environmental exposures.

Hanover said the transaction, subject to shareholder and regulatory approval, is expected to close before the end of the first quarter.

Frederick H. Eppinger, chief executive officer of The Hanover Insurance Group, said in a statement that the deal broadens the company's product specialization and would give independent agents more tools to help grow their business.