AM Best upgrades issuer credit ratings of The Hanover Insurance Group, subsidiaries

OLDWICK: AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” from “a” and affirmed the Financial Strength Rating (FSR) of A (Excellent) of the subsidiaries of the parent holding company, The Hanover Insurance Group (THG), collectively referred to as Hanover Insurance Group Property and Casualty Companies.

[the_ad id=”32940″]Additionally, AM Best has upgraded the Long-Term ICR to “bbb+” from “bbb” and all the Long-Term Issue Credit Ratings (Long-Term IR) of The Hanover Insurance Group (THG).

The outlook of these Credit Ratings (ratings) remains stable. All above named companies are headquartered in Worcester, MA.

The ratings reflect The Hanover’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.

The upgrade of the Long-Term ICRs reflect an improvement in AM Best’s assessment of the group’s business profile. Based on net premiums written, The Hanover ranks among the top 25 property/casualty organizations in the United States, while continuing to execute its business strategy of profitable growth and increasing market penetration.

The group’s product range includes personal lines, core commercial offerings and specialty coverages, with business expansion supported by strong relationships with its independent agency partners.

Additionally, The Hanover’s ratings reflect the group’s strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The ratings also reflect the group’s exposure management and re-underwriting, which have improved geographic and product diversification materially, resulting in profitability and earnings stability.

Lastly, the subsidiaries of THG benefit from its moderate financial leverage and financial flexibility.

Partially offsetting these positive rating factors are The Hanover’s comparatively high underwriting leverage and above-average expense position. However, over recent years, improved scale and enhanced operating efficiencies have driven a meaningful decline in the expense ratio.

The Long-Term ICRs have been upgraded to “a+” from “a”, and the FSR of A (Excellent) has been affirmed for the following subsidiaries of The Hanover Insurance Group, Inc.:

The Long-Term ICR has been upgraded to “bbb+” from “bbb” with a stable outlook for The Hanover Insurance Group, Inc.