
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of &#34;a+&#34; (Excellent) of the property/casualty subsidiaries of The Hanover

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" (Excellent) of the property/casualty subsidiaries of The Hanover Insurance Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/THG">THG</a>), which are collectively referred to as The Hanover. Additionally, AM Best has affirmed the Long-Term ICR of "bbb+" (Good) and all Long-Term Issue Credit Ratings (Long-Term IR) of The Hanover Insurance Group, Inc., which is the parent holding company. The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in Worcester, MA. (See below for a detailed listing of the companies and ratings.)


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


The Hanover’s strongest level balance sheet strength assessment is supported by its strongest level risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR). The overall balance sheet strength assessment reflects the organic surplus growth over the recent five-year period, stable loss reserve position and favorable development patterns. The balance sheet strength also considers the organization’s comprehensive reinsurance program, as well as the benefits it derived from the additional financial flexibility afforded through The Hanover Insurance Group, Inc. These positive factors are partially offset by higher premium and underwriting leverage measures, as evidenced by gross and net leverage ratios that are comparatively higher than the commercial casualty industry composite, as well as the group’s regional exposure to natural catastrophe and terror events. The Hanover’s financial leverage remains within acceptable levels relative to the group’s current ratings, supported by strong interest coverage measures.


The Hanover’s ratings reflect its adequate operating performance assessment. Viewed over the longer-term five-year period, pre-tax return-on-revenue measures trail that of the commercial casualty composite, as weaker results during the 2022/2023 period were negatively impacted by reported underwriting losses, due to severe convective storm losses across multiple states.


Improved results in recent years reflect ongoing management initiatives intended to both improve and sustain improvement across market cycles, combined with sustained rate increases, as well as favorable reserve releases occurring on prior year losses. Pre-tax return-on-revenue measures reported during 2025, were in line with the commercial casualty industry composite driven by the largest pre-tax operating income of the recent five-year period. The improved results are reflective of sustained improvement in both underwriting profitability and net investment income, as well as a decline in the amount of natural catastrophe losses.


The ratings also reflect the group’s favorable business profile and diversified product offerings, especially within its commercial and specialty lines of business. The Hanover’s business profile assessment considers its strong market position, reflective of its leading position in many of its targeted niche segments led by an experienced management team. The group’s product range includes a balance of personal lines, core commercial offerings and specialty coverages, with business expansion supported by strong relationships with its independent agency partners. The Hanover has implemented an appropriately designed and embedded ERM program to address the organization’s risks. The group’s ERM program is appropriate for the scale, scope and complexity of the organization and its ability to monitor key risks and tolerances is well-established.


The FSR of A (Excellent) and the Long-Term ICRs of "a+" (Excellent) have been affirmed with stable outlooks for the following subsidiaries of The Hanover Insurance Group, Inc.:

<ul xmlns="http://www.w3.org/1999/xhtml" class="bwlistdisc">
<li xmlns="http://www.w3.org/1999/xhtml">
AIX Specialty Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Allmerica Financial Alliance Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Allmerica Financial Benefit Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Campmed Casualty &amp; Indemnity Company, Inc.

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Citizens Insurance Company of America

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Citizens Insurance Company of Ohio

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Citizens Insurance Company of the Midwest

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Citizens Insurance Company of Illinois

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
The Hanover American Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
The Hanover Atlantic Insurance Company Ltd.

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
The Hanover Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
The Hanover Casualty Company (formerly known as Hanover Lloyd’s Insurance Company)

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Massachusetts Bay Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
NOVA Casualty Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Verlan Fire Insurance Company

</li>
</ul>
The following Long-Term IRs have been affirmed with stable outlooks:


The Hanover Insurance Group, Inc.—


-- "bbb-" (Good) on $165.7 million 8.207% subordinated deferrable debentures, due 2027 (of which $50.1 million remains outstanding)


-- "bbb+" (Good) on $300 million 2.5% senior unsecured notes, due 2030


-- "bbb+" (Good) on $500 million 5.5% senior unsecured fixed rate notes, due 2035


The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:


The Hanover Insurance Group, Inc.—


-- "bbb+" (Good) on senior unsecured debt


-- "bbb-" (Good) on subordinated debt


-- "bbb-" (Good) on preferred stock


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 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fratings.ambest.com%2Fratingeventdisclosures.aspx&amp;esheet=54589507&amp;newsitemid=20260814522706&amp;lan=en-US&amp;anchor=Recent+Rating+Activity&amp;index=1&amp;md5=d9e163958f70efde89927bedc9100bf3" shape="rect">Recent Rating Activity</a> web page. For additional information regarding the use and limitations of Credit Rating opinions, please view <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww3.ambest.com%2Fambv%2Fratingmethodology%2FOpenPDF.aspx%3Fri%3D1944&amp;esheet=54589507&amp;newsitemid=20260814522706&amp;lan=en-US&amp;anchor=Guide+to+Best%27s+Credit+Ratings&amp;index=2&amp;md5=5b2cc97fe3b431379f297ea863a3491d" shape="rect">Guide to Best&#39;s Credit Ratings</a>. 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 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.ambest.com%2Fratings%2Fguidetouse.pdf&amp;esheet=54589507&amp;newsitemid=20260814522706&amp;lan=en-US&amp;anchor=Guide+to+Proper+Use+of+Best%26%238217%3Bs+Ratings+%26amp%3B+Assessments&amp;index=3&amp;md5=b62074921d4b297358153450587284fb" shape="rect">Guide to Proper Use of Best’s Ratings &amp; Assessments</a>.


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 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.ambest.com%2F&amp;esheet=54589507&amp;newsitemid=20260814522706&amp;lan=en-US&amp;anchor=www.ambest.com&amp;index=4&amp;md5=e5d5fd92493a5306a8ac2d18d8b13adc" shape="rect">www.ambest.com</a>.


Copyright &#xA9; 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

<img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260814522706r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img>View source version on businesswire.com: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260814522706/en/" rel="nofollow">https://www.businesswire.com/news/home/20260814522706/en/</a>
Gordon McLean 
 Senior Financial Analyst 
 +1 908 882 2109 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:gordon.mclean@ambest.com" shape="rect">gordon.mclean@ambest.com</a>


Rosemarie Mirabella 
 Director 
 +1 908 882 2125 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:rosemarie.mirabella@ambest.com" shape="rect">rosemarie.mirabella@ambest.com</a>


Christopher Sharkey 
 Associate Director, Public Relations 
 +1 908 882 2310 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:christopher.sharkey@ambest.com" shape="rect">christopher.sharkey@ambest.com</a>


Al Slavin 
 Senior Public Relations Specialist 
 +1 908 882 2318 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:al.slavin@ambest.com" shape="rect">al.slavin@ambest.com</a>

AM Best Affirms Credit Ratings of The Hanover Insurance Group, Inc. and Its Subsidiaries

AM Best Affirms THG Hanover Ratings, Stable Outlook on Subsidiaries

<section class="insight" data-version="1">
 <section data-block="information">
 <h3>Information</h3>
 AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of &amp;#34;a+&amp;#34; (Excellent) of the property/casualty subsidiaries of The Hanover
 </section>

 <section data-block="ai-summary-paragraph">
 <h3>AI Summary</h3>
 AM Best affirmed THG&#039;s Hanover group ratings (FSR A and ICR a+) with a stable outlook, covering the Hanover&#039;s core P/C subsidiaries. The agency cites strongest balance sheet, favorable ERM, and improving underwriting results, driven by rate increases and reserve releases. While no upgrade is expected soon, the rating stability may support THG&#039;s debt cost and capital flexibility over the next 12-24 months.
 </section>

 <section data-block="ai-summary-bullets">
 <h3>Key Points</h3>
 <ul><li>AM Best affirms THG Hanover FSR A and ICR a+; stable outlook.</li><li>Affirmed ratings cover Hanover subsidiaries like Citizens, Hanover, NOVA, Mass Bay.</li><li>Outlook stable; balance sheet strongest with solid BCAR and ERM program.</li><li>2025 results improved; underwriting profitability improving amid rate increases.</li></ul>
 </section>

 <section data-block="companies-mentioned">
 <h3>Companies Mentioned</h3>
 <ul><li>The Hanover Insurance Group, Inc. (THG): Parent company; rating affirmation supports overall solvency and capital costs.</li><li>Citizens Insurance Company of America (N/A): Listed subsidiary; rating affirmation contributes to group stability.</li><li>NOVA Casualty Company (NOVA): Affirmed in rating activity; impacts regional catastrophe exposure assessment.</li><li>AIX Specialty Insurance Company (AIX): Subsidiary; included in AM Best credit assessment; supports P/C portfolio.</li></ul>
 </section>

 <section data-block="category">
 <h3>Industry News</h3>
 Category: Industry News; The article centers on insurer credit ratings, signaling THG&#039;s risk profile stability and potential impact on cost of capital.
 </section>

 <section data-block="market-moving">
 <h3>Market-Moving</h3>
 <ul><li>AM Best affirmation reduces refinancing risk for THG debt.</li><li>Stable outlook supports THG&#039;s insurer credit quality and valuation trajectory.</li><li>No upgrade expected; near-term stock reaction may be modest.</li><li>Investors may monitor THG debt issuances for favorable terms.</li></ul>
 </section>

 <section data-block="key-facts">
 <h3>Key Facts</h3>
 <ul><li>AM Best affirms THG Hanover FSR A and ICR a+; outlook stable.</li><li>Subsidiaries listed include AIX Specialty, Citizens, The Hanover Insurance Co., NOVA, Mass Bay.</li><li>Notes: $165.7m debentures due 2027; $300m due 2030; $500m due 2035.</li><li>Shelf: senior unsecured, subordinated, preferred stock; all stable.</li><li>2025 pre-tax operating income at Hanover was largest in five years.</li></ul>
 </section>

 <section data-block="trading-thesis">
 <h3>Trading Thesis</h3>
 Neutral to modestly bullish over 6–12 months as credit stability supports THG.
 </section>
</section>



AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" (Excellent) of the property/casualty subsidiaries of The Hanover Insurance Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/THG">THG</a>), which are collectively referred to as The Hanover. Additionally, AM Best has affirmed the Long-Term ICR of "bbb+" (Good) and all Long-Term Issue Credit Ratings (Long-Term IR) of The Hanover Insurance Group, Inc., which is the parent holding company. The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in Worcester, MA. (See below for a detailed listing of the companies and ratings.)


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


The Hanover’s strongest level balance sheet strength assessment is supported by its strongest level risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR). The overall balance sheet strength assessment reflects the organic surplus growth over the recent five-year period, stable loss reserve position and favorable development patterns. The balance sheet strength also considers the organization’s comprehensive reinsurance program, as well as the benefits it derived from the additional financial flexibility afforded through The Hanover Insurance Group, Inc. These positive factors are partially offset by higher premium and underwriting leverage measures, as evidenced by gross and net leverage ratios that are comparatively higher than the commercial casualty industry composite, as well as the group’s regional exposure to natural catastrophe and terror events. The Hanover’s financial leverage remains within acceptable levels relative to the group’s current ratings, supported by strong interest coverage measures.


The Hanover’s ratings reflect its adequate operating performance assessment. Viewed over the longer-term five-year period, pre-tax return-on-revenue measures trail that of the commercial casualty composite, as weaker results during the 2022/2023 period were negatively impacted by reported underwriting losses, due to severe convective storm losses across multiple states.


Improved results in recent years reflect ongoing management initiatives intended to both improve and sustain improvement across market cycles, combined with sustained rate increases, as well as favorable reserve releases occurring on prior year losses. Pre-tax return-on-revenue measures reported during 2025, were in line with the commercial casualty industry composite driven by the largest pre-tax operating income of the recent five-year period. The improved results are reflective of sustained improvement in both underwriting profitability and net investment income, as well as a decline in the amount of natural catastrophe losses.


The ratings also reflect the group’s favorable business profile and diversified product offerings, especially within its commercial and specialty lines of business. The Hanover’s business profile assessment considers its strong market position, reflective of its leading position in many of its targeted niche segments led by an experienced management team. The group’s product range includes a balance of personal lines, core commercial offerings and specialty coverages, with business expansion supported by strong relationships with its independent agency partners. The Hanover has implemented an appropriately designed and embedded ERM program to address the organization’s risks. The group’s ERM program is appropriate for the scale, scope and complexity of the organization and its ability to monitor key risks and tolerances is well-established.


The FSR of A (Excellent) and the Long-Term ICRs of "a+" (Excellent) have been affirmed with stable outlooks for the following subsidiaries of The Hanover Insurance Group, Inc.:

<ul xmlns="http://www.w3.org/1999/xhtml" class="bwlistdisc">
<li xmlns="http://www.w3.org/1999/xhtml">
AIX Specialty Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Allmerica Financial Alliance Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Allmerica Financial Benefit Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Campmed Casualty &amp; Indemnity Company, Inc.

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Citizens Insurance Company of America

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Citizens Insurance Company of Ohio

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Citizens Insurance Company of the Midwest

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Citizens Insurance Company of Illinois

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
The Hanover American Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
The Hanover Atlantic Insurance Company Ltd.

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
The Hanover Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
The Hanover Casualty Company (formerly known as Hanover Lloyd’s Insurance Company)

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Massachusetts Bay Insurance Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
NOVA Casualty Company

</li>
<li xmlns="http://www.w3.org/1999/xhtml">
Verlan Fire Insurance Company

</li>
</ul>
The following Long-Term IRs have been affirmed with stable outlooks:


The Hanover Insurance Group, Inc.—


-- "bbb-" (Good) on $165.7 million 8.207% subordinated deferrable debentures, due 2027 (of which $50.1 million remains outstanding)


-- "bbb+" (Good) on $300 million 2.5% senior unsecured notes, due 2030


-- "bbb+" (Good) on $500 million 5.5% senior unsecured fixed rate notes, due 2035


The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:


The Hanover Insurance Group, Inc.—


-- "bbb+" (Good) on senior unsecured debt


-- "bbb-" (Good) on subordinated debt


-- "bbb-" (Good) on preferred stock


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 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fratings.ambest.com%2Fratingeventdisclosures.aspx&amp;esheet=54589507&amp;newsitemid=20260814522706&amp;lan=en-US&amp;anchor=Recent+Rating+Activity&amp;index=1&amp;md5=d9e163958f70efde89927bedc9100bf3" shape="rect">Recent Rating Activity</a> web page. For additional information regarding the use and limitations of Credit Rating opinions, please view <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww3.ambest.com%2Fambv%2Fratingmethodology%2FOpenPDF.aspx%3Fri%3D1944&amp;esheet=54589507&amp;newsitemid=20260814522706&amp;lan=en-US&amp;anchor=Guide+to+Best%27s+Credit+Ratings&amp;index=2&amp;md5=5b2cc97fe3b431379f297ea863a3491d" shape="rect">Guide to Best&#39;s Credit Ratings</a>. 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 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.ambest.com%2Fratings%2Fguidetouse.pdf&amp;esheet=54589507&amp;newsitemid=20260814522706&amp;lan=en-US&amp;anchor=Guide+to+Proper+Use+of+Best%26%238217%3Bs+Ratings+%26amp%3B+Assessments&amp;index=3&amp;md5=b62074921d4b297358153450587284fb" shape="rect">Guide to Proper Use of Best’s Ratings &amp; Assessments</a>.


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 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.ambest.com%2F&amp;esheet=54589507&amp;newsitemid=20260814522706&amp;lan=en-US&amp;anchor=www.ambest.com&amp;index=4&amp;md5=e5d5fd92493a5306a8ac2d18d8b13adc" shape="rect">www.ambest.com</a>.


Copyright &#xA9; 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

<img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260814522706r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img>View source version on businesswire.com: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260814522706/en/" rel="nofollow">https://www.businesswire.com/news/home/20260814522706/en/</a>
Gordon McLean 
 Senior Financial Analyst 
 +1 908 882 2109 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:gordon.mclean@ambest.com" shape="rect">gordon.mclean@ambest.com</a>


Rosemarie Mirabella 
 Director 
 +1 908 882 2125 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:rosemarie.mirabella@ambest.com" shape="rect">rosemarie.mirabella@ambest.com</a>


Christopher Sharkey 
 Associate Director, Public Relations 
 +1 908 882 2310 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:christopher.sharkey@ambest.com" shape="rect">christopher.sharkey@ambest.com</a>


Al Slavin 
 Senior Public Relations Specialist 
 +1 908 882 2318 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:al.slavin@ambest.com" shape="rect">al.slavin@ambest.com</a>

AM Best affirmed THG's Hanover group ratings (FSR A and ICR a+) with a stable outlook, covering the Hanover's core P/C subsidiaries. The agency cites strongest balance sheet, favorable ERM, and improving underwriting results, driven by rate increases and reserve releases. While no upgrade is expected soon, the rating stability may support THG's debt cost and capital flexibility over the next 12-24 months.

News insight

AM Best Affirms Credit Ratings of The Hanover Insurance Group, Inc. and Its Subsidiaries

AI summary

Sentiment rationale

Key facts

Industry News