EXHIBIT 99.2
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THE HANOVER INSURANCE GROUP, INC.'S BOARD OF DIRECTORS AUTHORIZES A SHARE
REPURCHASE PROGRAM
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WORCESTER, Mass., December 28, 2005 - The Hanover Insurance Group, Inc. (NYSE:
THG) announced that the company's Board of Directors has authorized the
previously announced share repurchase program of up to $200 million funded from
the proceeds of, and contingent on the closing of, the previously announced sale
of its life insurance subsidiary, Allmerica Financial Life Insurance and Annuity
Company ("AFLIAC") to The Goldman Sachs Group, Inc. The sale of AFLIAC is
expected to occur on December 30, 2005. The related and previously announced AIT
fund reorganization and sale of the AIT funds' investment advisory company are
expected to occur on January 6, 2006.
The share repurchase program is currently expected to be substantially completed
in the first half of 2006.
Forward-Looking Statements
Certain statements in this release, including statements estimating the expected
closing dates for the transactions and the expected completion date for the
share repurchase program, are forward-looking statements, as that term is
defined in the Private Securities Litigation Reform Act of 1995. There are
certain factors that could cause actual results, including the completion of the
repurchase program, to differ materially from those anticipated by this press
release. These include: (1) the successful consummation of the transaction with
Goldman Sachs in a timely manner; (2) the various conditions to the consummation
of such transactions being satisfied or waived without the imposition of
material burdens or expenses; and (3) the uncertainties of the successful and
timely execution of the repurchase program and the continuation thereof in the
event of unanticipated events, market conditions or other opportunities or needs
for the deployment of capital.
Forward-looking statements are not guarantees of future performance, and actual
results could well differ materially. Investors should consider these and other
risks and uncertainties in our business that may affect future performance
(including Life Companies operations) and that are discussed in readily
available documents, including The Hanover's (formerly Allmerica's) Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, periodic reports on Form
8-K and other documents filed by The Hanover Insurance Group, Inc. (formerly
named "Allmerica Financial Corporation") with the Securities and Exchange
Commission and which are also available at www.hanover.com under "Investors".
The Hanover Insurance Group, Inc., formerly know as Allmerica Financial
Corporation, is the holding company for a group of insurance companies
headquartered in Worcester, Massachusetts.
Contact Information
Investors: Media:
Sujata Mutalik Michael F. Buckley
E-mail: smutalik@hanover.com E-mail: mibuckley@hanover.com
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