Hanover Insurance Group's credit ratings remain unchanged by AM Best following the assessment of the company and its affiliates.
The Hanover Insurance Group Maintains Strong Financial Ratings from AM Best
The Hanover Insurance Group, a leading provider of property and casualty insurance, has retained its strong financial ratings from global credit rating agency AM Best.
As of July 2025, The Hanover's property/casualty subsidiaries have an AM Best Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of "a+" (Excellent)[1]. These ratings come with a stable outlook.
AM Best assesses The Hanover's balance sheet strength at the strongest level. This strength is bolstered by its risk-adjusted capitalization, solid organic surplus growth over five years, stable loss reserve positions, favorable development patterns, and a comprehensive reinsurance program[1].
Regarding operating performance, AM Best rates it as adequate, while the business profile is considered favorable. The enterprise risk management (ERM) is deemed appropriate. Some challenges include higher premium and underwriting leverage and regional exposure to natural catastrophes and terror events. Financial leverage remains acceptable with improved interest coverage[1].
The Hanover Insurance Group itself has a Long-Term ICR of "bbb+" (Good). The following indicative Long-Term Issue Credit Ratings under the shelf registration have been affirmed with a stable outlook: The Hanover Insurance Group, Inc.[2]
The following Long-Term Issue Credit Ratings (Long-Term IR) have been affirmed with a stable outlook: - $199.5 million 7.625% senior unsecured debentures, due 2025 - $375.0 million 4.5% senior unsecured fixed rate notes, due 2026 - $165.7 million 8.207% subordinated deferrable debentures, due 2027 - $300 million 2.5% senior unsecured notes, due 2030[2]
For more information about AM Best, visit www.ambest.com. For details about the office responsible for issuing each rating mentioned in this release, please visit AM Best's Recent Rating Activity web page. For information on the proper use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings.
[1] AM Best press release, 2025 [2] AM Best press release, 2025 [3] Quote.com, 2024 (Note: Quote.com's information may be outdated or less authoritative)
The Hanover Insurance Group's strong financial ratings from AM Best not only include an A (Excellent) Financial Strength Rating (FSR) and a "a+" (Excellent) Long-Term Issuer Credit Rating (Long-Term ICR), but also affirm the performance of their property/casualty subsidiaries in the cloud of finance, with stable outlooks as evidence of their robustness. The latter is underpinned by factors such as strong risk-adjusted capitalization, robust organic surplus growth, and a comprehensive reinsurance program. However, the group faces challenges like higher premium and underwriting leverage, and regional exposure to natural disasters and terror events.
