The Hanover Insurance Group celebrated its 160th anniversary in 2012
The Insurance rating and information company, A.M. Best has affirmed the ratings of the Worcester-based The Hanover Insurance Group, Inc. with a financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” for the company’s subsidiaries. In addition, the ratings company has affirmed its stable outlook for the company. The insurer, which celebrated its 160th year in 2012, includes the following subsidiaries:
- AIX Specialty Insurance Company
- Allmerica Financial Alliance Insurance Company
- Allmerica Financial Benefit Insurance Company
- Campmed Casualty & Indemnity Company, Inc.
- Citizens Insurance Company of America
- Citizens Insurance Company of Ohio
- Citizens Insurance Company of the Midwest
- Citizens Insurance Company of Illinois
- The Hanover American Insurance Company
- The Hanover Insurance Company
- The Hanover Lloyd’s Insurance Company
- The Hanover New Jersey Insurance Company
- Massachusetts Bay Insurance Company
- NOVA Casualty Company
- Professionals Direct Insurance Company
- Verlan Fire Insurance Company
In announcing its decision, A.M. Best said:
The ratings reflect The Hanover’s solid risk-adjusted capitalization, stemming from favorable operating earnings especially in years with milder weather patterns. Catastrophe losses coupled with other weather-related events as well as historic periodic dividend payments to THG hindered surplus appreciation in earlier years. However, suspension of the dividend coupled with reduced losses from milder weather patterns and improved risk management along with favorable equity markets have enabled the group to increase surplus by 20% in 2013.
In addition, the ratings reflect The Hanover’s sound business profile and diversified product offerings, especially in the commercial and specialty segments of its book of business. Furthermore, the subsidiaries of THG also benefit from its moderate financial leverage and financial flexibility.
