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Hanover Insurance Group, Inc (The) -- Moody's affirms The Hanover Insurance Group's ratings, changes outlook to positive following announced sale of Chaucer

Moody's Investors Service ("Moody's") has affirmed the Baa3 senior debt rating of The Hanover Insurance Group, Inc (NYSE:THG, Hanover) and the A3 insurance financial strength (IFS) rating of its operating subsidiary, Hanover Insurance Co., and changed the ratings' outlook to positive from stable, following the company's announcement that it has entered into a definitive agreement to sell its Chaucer business unit, Hanover's Lloyd's-focused international specialty business, for $865 million in cash (and $85 million in Chaucer dividends) to China Reinsurance Corporation. Hanover expects to use the proceeds from the sale to expand its US businesses and potentially reduce leverage and/or return capital to shareholders.