Hanover Insurance Group's credit ratings remain unchanged by AM Best
The Hanover Insurance Group Maintains Excellent Financial Strength Rating and Long-Term Issuer Credit Ratings
AM Best, a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry, has affirmed The Hanover Insurance Group's Financial Strength Rating (FSR) at A (Excellent) and Long-Term Issuer Credit Ratings (Long-Term ICR) at "a+" (Excellent).
The key factors contributing to these ratings include The Hanover Insurance Group's:
- Strongest level balance sheet strength, supported by risk-adjusted capitalization measured by Best's Capital Adequacy Ratio (BCAR).
- Adequate operating performance reflecting consistent financial results.
- Favorable business profile which supports stable insurance operations.
- Appropriate enterprise risk management (ERM) ensuring well-managed risk exposures.
- Solid organic surplus growth over the past five years despite paying stockholder dividends.
- Stable loss reserve position and favorable development patterns, indicating sound underwriting and claims management.
- Comprehensive reinsurance program that mitigates risk.
- Benefits from financial flexibility available through the parent company, The Hanover Insurance Group, Inc.
- Financial leverage and interest coverage measures remaining within acceptable levels for the rating.
However, these strengths are somewhat offset by higher premium and underwriting leverage measures and regional exposure to natural catastrophe and terror events.
The Hanover Insurance Group's balance sheet strength is assessed at the strongest level, reflecting its stable loss reserve position, favorable development patterns, solid organic surplus growth, and robust risk-adjusted capitalization. The ratings also consider the company's favorable business profile and diversified product offerings.
The Hanover Insurance Group's parent holding company's Long-Term ICR is "bbb+" (Good).
For more information about AM Best, visit www.ambest.com. For information on the proper use and limitations of Credit Rating opinions, view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments, and AM Best press releases, view Guide to Proper Use of Best's Ratings & Assessments.
AM Best does business in over 100 countries, with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City. The Hanover Insurance Group is headquartered in Worcester, MA.
For more information, contact Gordon McLean (Senior Financial Analyst), Rosemarie Mirabella (Director), Christopher Sharkey (Associate Director, Public Relations), or Al Slavin (Senior Public Relations Specialist) at AM Best. To access rating information related to the release and pertinent disclosures, visit AM Best's Recent Rating Activity web page.
[1] AM Best Press Release, The Hanover Insurance Group's Financial Strength Rating (FSR) and Long-Term Issuer Credit Ratings (Long-Term ICR) Affirmed at A (Excellent) and "a+" (Excellent), Respectively
[3] AM Best Press Release, The Hanover Insurance Group's Financial Strength Rating (FSR) and Long-Term Issuer Credit Ratings (Long-Term ICR) Affirmed at A (Excellent) and "a+" (Excellent), Respectively
The affirmation of The Hanover Insurance Group's Financial Strength Rating and Long-Term Issuer Credit Ratings by AM Best signifies a strong performance in the finance sector, specifically in insurance business. The group's cloud-based platforms and advanced technologies may contribute to enhanced operational efficiency, providing a competitive edge in the business landscape.
