It is not that Frederick Eppinger is not favorable to insurance companies as The Hartford Financial Services Group, which are faced with tensions in the balance of current financial market chaos.

It recognizes that the Hanover Insurance Group Inc., where he is president and CEO, has not always been immune to this type of stress: "We have done many things that people are there five years now, "he says.

But at the same time, Eppinger says his company, based in Worcester, is ready to take advantage of the situation by buying companies in the absence of documents or simply hiring away their employees.

On 24 April, after rumors leaked that The Hartford has been trying to sell its property and accident insurance business, Eppinger, who worked for the insurer based in Connecticut, said a "few dozen" of asked its employees to see if there be a place for them in Worcester.

Bad Old Days

To understand where stands the Hanover now, you need to return to the front, it was Hanover. In the early years of this decade, Allmerica Financial Corp.. The life insurance division was dragging down the company, focusing on the massive layoffs and a big stock market fall.

Then, as now, life insurance, where policies often for decades, has been subject to a more risky investment that damage business where they are often renewed each year. And found that those in charge of the lives of Allmerica made some bad calls.

Eppinger, who grew up in Spencer and had family who worked for Allmerica, following the company to drop from his perch at The Hartford, where he was Executive Vice President. When Allmerica committed to an attempted takeover in 2003, he was aware that things were difficult, but until it shows in Worcester, he did not realize how much employee morale and was disappointed with the way the local community has been in the business.

Then he and his wife went to a party in town, and his wife mentioned that her husband did.

"The person who took his place at 15 minutes, talking about how the company was bad," remembers Eppinger.

Allmerica began the dismantling of life, and Eppinger set out to repair the damage. It has helped, he said, he was a child who can ensure that employers, he did not want the embarrassment of himself more damage to an important institution in Worcester. He also contributed to this Allmerica able to make a small profit in the first year he was there.

These days, most in the industry seem to believe that the Hanover regained its footing, with some good cost control, management and disposal of the volatility of business life.

"I think they have spent, I would say, a lower quartile to first quartile company business," said Clifford Gallant, an analyst who follows the Hanover from Keefe, Bruyette & Woods, Inc..

Gallant said part of the company the call is especially these days that it is radically changed its old approach and now very conservative investments. "Two years ago, which did not actually look like a great idea, because they do not have the same return on investments that others have, he says." But in 12 months proved to be a good strategy. "

When it comes to stock prices, the company has outperformed its industry in a harsh climate. During the last years, its share price has fallen about 35 percent while the S & P Insurance Index has dropped 59 percent.

The company's revenues increased slightly between 2007 and 2008, from $ 2.67 to $ 2.68 billion billion dollars, while its net income rose from $ 253 million to $ 20 million, which was mainly because of the disaster and unusually high losses due to weather.

Buyer's Market

These days, The Hanover may look at other companies, with an eye to its own growth. Since late 2007, it acquired three insurance companies of specialty, including one that offers professional liability insurance for lawyers and another that focuses on chemical companies.

Eppinger said he expects such acquisitions rise in the second half of the year and the beginning of 2010, as stress increases for insurers and businesses are turning to the sale of shares in them themselves to keep enough cash on hand. Already, he said, there are many companies looking for buyers.

"I bet you I get two calls a week for the sale of businesses," he said, adding he expects 50 or 60 bids before ending up with three recent acquisitions.

But Eppinger said he was not the only field proposals for small guys who are looking for players of average size as the Hanover Fair for output. He also had his eye on the big players that come with the exception of the joints, looking for small pieces of their business to register in Hanover, plans for growth. He even spoke with the most famous in the absence of insurance American International Group Inc, a small business what he could take off his hands.

Eppinger and outside observers agree that Hanover does not want a giant door. The three that made everyone around 25 million.

"They are not public companies to buy, they are not borrowing money or issuing a lot of stock to finance these purchases," said Gallant.

Eppinger said the acquisitions are part of a wider strategy to business growth specialty businesses. Since he joined the Hanover, the part of the company rose from $ 65 million to a proposed $ 500 million, according to spokesman Michael Buckley. It's always the shadow of $ 1 billion commercial and business $ 1.5 billion personal lines, but the specialty products that Eppinger is most interested in the culture.

The CEO said the company has built "dozens and dozens of specialty lines in recent years, including products for moving and storage companies, assisted living, schools and other types of businesses. It now seeks to develop a product designed specifically for farms and recreation for the purchase of a fuel oil dealers, among other things.

These kinds of product lines are not something that can be sold on the Internet. Instead, they can fill gaps for insurance agents who want to cover all kinds of small and medium enterprises.

Many officers who work with Hanover said they were impressed by the willingness to try new things at a time when many carriers avoid.

"They are developing new products and new niches and have been really aggressive in entering new markets," said Mark Levine, Executive Vice President of lines at Eastern Insurance Group LLC in Natick.

Ironically, Eppinger said, this kind of limit aggression is only possible because the Hanover has learned from its past and adopted a conservative approach that is in his heart.

"We're about as close to a no-risk exists in American society at this time," he said.