AM Best Comments on Credit Ratings of Mid-Hudson Group Members Following Announced Securities Purchase Agreement and Acquisition of Hanover Fire Holdings, Inc.

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Mid-Hudson Co-Operative Insurance Company, the lead operating company within Mid-Hudson Group (MHG) (Montgomery, NY), remain unchanged following the signing of a securities purchase agreement of Hanover Fire Holdings, Inc. (King of Prussia, PA) on Jan. 20, 2026.

This agreement is between Mid-Hudson Co-Operative Insurance Company, an advance premium mutual property/casualty insurance company and Hanover Fire Holdings, Inc., which owns all of the issued and outstanding shares of common stock of Hanover Fire & Casualty Insurance Company (Hanover).

The Credit Ratings (ratings) reflect MHG’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

Following the acquisition, MHG has the potential to add new products, pricing flexibility, and greater geographic diversification of premium sources.

Hanover writes predominantly personal property lines of business including fire and other liability, burglary/theft, allied lines and homeowners and will be owned by Mid-Hudson Co-Operative Insurance Company.

The acquisition will be financed by $4.0 million in cash and a $3.5 million bank loan whose terms and conditions are still in negotiation. Although debt leverage will increase for the group, it is within an acceptable range of AM Best guidelines. Further, with this acquisition, risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is expected to remain at a level that supports the consolidated group. The transaction is subject to regulatory approvals from Pennsylvania and New York.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please 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, please view Guide to Proper Use of Best’s Ratings & Assessments.

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