Hanover Insurance Group's credit ratings remain unchanged, according to AM Best. The assessments apply to the primary holding company, along with its subsidiaries.
The Hanover Insurance Group Maintains Excellent Financial Strength and Stable Outlook
The Hanover Insurance Group, a leading player in the insurance industry, has received a positive assessment from AM Best, a global credit rating agency. The company's Financial Strength Rating (FSR) and Long-Term Issuer Credit Ratings (Long-Term ICR) have been affirmed at A (Excellent) and "a+" (Excellent) respectively, with a stable outlook.
This positive rating is due to several factors, including the company's strong balance sheet, robust capital adequacy, and effective risk management strategies. One key indicator of this strength is Hanover's Best's Capital Adequacy Ratio (BCAR) at the highest risk-adjusted level, signifying strong capital reserves relative to its risk profile.
The company's comprehensive reinsurance program also plays a significant role in its risk mitigation. Additionally, a strategic $500 million debt offering has strengthened its financial resilience in a volatile insurance market.
Hanover's operating performance has improved significantly, aligning pre-tax earnings with industry benchmarks. This improvement is attributed to rate actions, exposure management, and reduced catastrophe losses.
Moreover, the company benefits from a diversified product portfolio across personal lines, commercial offerings, and specialty coverages. This diversity reduces vulnerability to sector-specific downturns. Hanover's robust enterprise risk management (ERM) framework further enhances its ability to navigate market volatility.
AM Best considers Hanover's debt instruments, including its senior unsecured notes rated at “bbb+,” to have acceptable risk profiles, supporting investor confidence. The ratings reflect Hanover's balance sheet strength, adequate operating performance, favourable business profile, and appropriate ERM.
For more information about AM Best, visit www.ambest.com. AM Best's contacts can be reached at the following phone numbers and email addresses: Gordon McLean, Senior Financial Analyst (1 908 882 2109, [email protected]), Rosemarie Mirabella, Director (1 908 882 2125, [email protected]), Christopher Sharkey, Associate Director, Public Relations (1 908 882 2310, [email protected]), and Al Slavin, Senior Public Relations Specialist (1 908 882 2318, [email protected]).
[1] For information on the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. [2] 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, please view the Guide to Proper Use of Best's Ratings & Assessments.
The following are some of the debt instruments rated by AM Best for The Hanover Insurance Group, Inc.: - $300 million 2.5% senior unsecured notes, due 2030 - $165.7 million 8.207% subordinated deferrable debentures, due 2027 - $199.5 million 7.625% senior unsecured debentures, due 2025 - $375.0 million 4.5% senior unsecured fixed rate notes, due 2026
For all rating information relating to the release and pertinent disclosures, please see AM Best's Recent Rating Activity web page. AM Best is headquartered in the United States and has regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City, and does business in over 100 countries.
The affirmation of The Hanover Insurance Group's Financial Strength Rating and Long-Term Issuer Credit Ratings by AM Best underscores the company's stable outlook in the finance industry. The cloud-based enterprise risk management (ERM) framework contributes to the company's ability to deliver consistent performance in business, especially in the face of market volatility.
