The Hanover Insurance Group, Inc. THG has entered into an agreement to transfer its United Kingdom motor business to UK-based insurance provider Markerstudy Group. The total consideration of the deal is $60 million. Markerstudy Group is a leading U.K.-based insurance provider.

The transaction is pending regulatory approvals and is expected to close in the third quarter of 2015. Per the deal, the prior claim liabilities and in-force policies written by the U.K. motor business division will be reinsured and other entities associated with the business will be divested.

The Hanover’s international business is written through Lloyd's of London in a number of major insurance and reinsurance classes. These include property, marine and aviation, energy, U.K. motor and casualty.

Lloyd’s is a specialist insurance and reinsurance market, where members unite as a syndicate to insure risk. According to a report published by Lloyd’s, it had reported a pre-tax profit of $4.9 billion in 2014 and outperformed its competitor group.

The transfer of the above-mentioned division hence should allow The Hanover to deliver more resources to the promising Lloyd’s market and reap more benefits from the opportunities arising in the same space. Thus, The Hanover considers the transfer of U.K. motor business to be beneficial for the division.

The motor business’ association with Markerstudy, an eminent name in the domestic U.K. market, should allow the division to gain from strategic investments in the products and services of the organization. This should drive the motor division’s success going forward.

The Hanover currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the property and casualty insurance space include AXIS Capital Holdings Ltd. AXS, Cincinnati Financial Corp. CINF and First American Financial Corp. FAF. All three stocks sport a Zacks Rank #1 (Strong Buy).

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