HANOVER SELLS OFF LAST OF RUN-OFF LIFE BUSINESS

Massachusetts-based p/c insurer Hanover Insurance Group has completed the $220m sale of First Allmerica Financial Life Insurance, its remaining run-off life business, to Goldman Sachs Group’s Commonwealth Annuity and Life Insurance unit. Hanover said that it had previously reported a net after-tax loss of about $72m on the sale, as of the end of September. An extra $8m loss developed through to the end of the year as a result of investment-related adjustments. Full details of the adjusted transaction will be provided with Hanover’s full-year results. Hanover began divesting its life operations in 2002, since when it has increased its focus on its core p/c operations.