AM Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of Hanover Fire & Casualty Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Hanover Fire & Casualty Insurance Company (Hanover) (King of Prussia, PA). The outlook assigned to these Credit Ratings (ratings) is stable.

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

The removal of the ratings from under review reflects the improvement in Hanover’s overall risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR) at the 99.6% Value-at-Risk (VaR) level, following the company’s purchase of an additional layer of reinsurance coverage. As a result, Hanover’s overall risk-adjusted capitalization as per BCAR improved to very strong from adequate. However, the company’s final overall balance sheet strength assessment remains adequate.

Hanover’s final ratings continue to receive one level of drag by its parent, Mid-Hudson Co-Operative Insurance Company. AM Best anticipates that Hanover’s operating performance will continue to be adequate, while its business profile remains limited and its ERM program remains appropriate.

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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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