OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Hanover Fire & Casualty Insurance Company (HFCIC) (King of Prussia, PA).
These Credit Ratings (ratings) reflect HFCIC’s balance sheet strength and operating performance, which A.M. Best categorizes as adequate, limited business profile and appropriate enterprise risk management.
The revised outlooks reflect the positive improvement in underwriting results in four of the past five years, supplemented by a steady stream of net investment and fee income that resulted in positive five-year operating results. The ratings also reflect the company’s improved risk-adjusted capitalization as reflected in surplus growth in each of the past five years and increased scope of operations as reflected in the net written premium growth from business in Indiana, its second leading state. Although currently assessed as adequate, A.M. Best’s expects sustained improvement in HFCIC’s balance sheet strength.
Partially offsetting these positive rating factors is the company’s limited business profile. With a majority of its business produced in Pennsylvania, the company is exposed to weather-related losses, as well as judicial, regulatory and economic concerns.
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