Hanover Insurance Group Inc. has entered into a $150 million accelerated share repurchase agreement with Wells Fargo Bank NA.
The company expects delivery of 80% of the shares by Dec. 9, equivalent to approximately 900,000 shares. The remaining shares are expected to be delivered by the end of the first quarter of 2020.
Hanover's board also declared a special cash dividend of $2.50 per share and a regular quarterly dividend of 65 cents per share. The dividends will be paid on Dec. 27 to shareholders of record at the close of business on Dec. 16.
The $150 million share repurchase agreement and the $100 million aggregate value of the special cash dividend complete the company's $850 million capital deployment related to the sale of Chaucer PLC in 2018.
The board also increased the company's existing share repurchase authorization to $900 million. After accounting for the $150 million accelerated buyback plan, the company will have approximately $335 million remaining under the authorization.