The Hanover Insurance Group Inc. said it has completed its acquisition of Verlan Holdings Inc. of Silver Spring, Md., for $29 million. No additional financial terms were released.
Verlan, which Hanover said it planned to acquire in January, 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 licensed to do business in 27 states.
According to Highline Data, 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.
Frederick H. Eppinger, chief executive officer of Worcester, Mass.-based Hanover Insurance, said in a statement that the deal enhances the insurer's ability to “deliver distinctive value to our agent partners and shareholders.”
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