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Business Wire
a day ago
- Business
- Business Wire
AM Best Affirms Credit Ratings of The Hanover Insurance Group, Inc. and Its Subsidiaries
BUSINESS WIRE)-- 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: THG], 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 balance sheet strength assessment is supported by its risk-adjusted capitalization, which is at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The overall balance sheet strength assessment also considers the solid organic surplus growth over the recent five-year period despite ongoing stockholder dividends, as well as the group's stable loss reserve position and favorable development patterns. Balance sheet strength also reflects the comprehensive reinsurance program and the benefits derived from the additional financial flexibility available through the parent company, The Hanover Insurance Group, Inc. These positive factors are offset somewhat by higher premium and underwriting leverage measures, 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 with improved interest coverage. The Hanover's ratings reflect its adequate operating performance. While pre-tax operating earnings have trailed the commercial casualty composite over the long term, improved operating performance in 2024 reflects ongoing initiatives to enhance results inclusive of additional rate, combined with a reduction in reported catastrophe losses relative to 2023. Rate and exposure increases drove strong top-line growth in commercial lines in 2024 as results benefited from lower catastrophe losses combined with favorable reserve development on prior-year losses. The decline in catastrophe losses in 2024 led to improvement in personal lines results, which benefit from ongoing exposure management initiatives, combined with the benefit of earned premium reflective of ongoing rate improvement. Recent 2024 initiatives, which are showing demonstrated earnings improvement include ongoing rate actions, in combination with higher insurance-to-value ratios, increases in deductibles for roofs and all perils, as well as selective non renewals where appropriate. The ratings also consider 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 reflects its strong market position, reflective of its leading position in many of its targeted niche segments, as well as an experienced management team. The group's product range includes 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 the 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.: AIX Specialty Insurance Company Allmerica Financial Alliance Insurance Company Allmerica Financial Benefit Insurance Company Campmed Casualty & Indemnity Company, Inc. Citizens Insurance Company of America Citizens Insurance Company of Ohio Citizens Insurance Company of the Midwest Citizens Insurance Company of Illinois The Hanover American Insurance Company The Hanover Atlantic Insurance Company Ltd. The Hanover Insurance Company The Hanover Casualty Company (formerly known as Hanover Lloyd's Insurance Company) Massachusetts Bay Insurance Company NOVA Casualty Company Verlan Fire Insurance Company The following Long-Term IRs have been affirmed with a stable outlook: The Hanover Insurance Group, Inc.— -- 'bbb+' (Good) on $199.5 million 7.625% senior unsecured debentures, due 2025 (of which $61.8 million remains outstanding) -- 'bbb+' (Good) on $375.0 million 4.5% senior unsecured fixed rate notes, due 2026 -- '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 The following indicative Long-Term IRs under the shelf registration have been affirmed with a stable outlook: 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 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.
Business Wire
15-07-2025
- Business
- Business Wire
AM Best Withdraws Credit Ratings of First Acceptance Corporation and Its Subsidiaries
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of C++ (Marginal) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'b+' (Marginal) of the subsidiaries of First Acceptance Corporation (Delaware) [OTCQX: FACO], collectively referred to as First Acceptance Insurance Group (First Acceptance). (See below for a detailed list of the companies and ratings.) Concurrently, AM Best has affirmed the Long-Term ICR of 'ccc-' (Weak) of First Acceptance Corporation. The outlook of these Credit Ratings (ratings) is stable. At the same time, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best's interactive rating process. The ratings reflect First Acceptance's balance sheet strength, which AM Best assesses as weak, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM). The weak balance sheet assessment reflects the significant volatility in policyholder surplus, elevated underwriting leverage measures and adverse reserve development during the latest five-year period. In recent years, additions to policyholder surplus have been reported due to net income from operations and capital contributions from its parent. Overall risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio (BCAR) remains strong. Despite improvement in recent periods, the position remains highly sensitive to premium growth and reserve adequacy. First Acceptance's marginal operating performance is driven by persistent underwriting losses and fluctuating operating results. However, underwriting losses are partially offset by fee and other income. The group's limited business profile reflects operations that are focused solely on non-standard automobile business. ERM is viewed as marginal as the framework continues to evolve. While steps have been taken to integrate a more formalized structure, risk management capabilities are not fully aligned with the organization's profile. The FSR of C++ (Marginal) and the Long-Term ICRs of 'b+' (Marginal) have been affirmed, with stable outlooks. Concurrently, AM Best has withdrawn the ratings at the company's request for the following pooled subsidiaries of First Acceptance Corporation: First Acceptance Insurance Company, Inc. First Acceptance Insurance Company of Georgia, Inc. First Acceptance Insurance Company of Tennessee, Inc. 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.
Business Wire
09-07-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of ProAssurance Group Members and ProAssurance Corporation
BUSINESS WIRE)-- 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 members of ProAssurance Group. Concurrently, AM Best has affirmed the Long-Term ICR of 'bbb+' (Good) and the indicative Long-Term Issue Credit Ratings (Long-Term IRs) of ProAssurance Corporation (PRA) (headquartered in Birmingham, AL). The outlook of these Credit Ratings (ratings) is stable. All companies are indirect subsidiaries of PRA. (See below for a detailed listing of subsidiaries and indicative Long-Term IRs.) The ratings of ProAssurance Group reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). The group's balance sheet strength assessment continues to be at the strongest level, with risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), remaining supportive of the strongest assessment. The balance sheet strength assessment benefits from conservative positioning of the investment portfolio, stable surplus position and financial flexibility provided by publicly traded parent, PRA. Underwriting leverage metrics have decreased in recent years as ProAssurance has shed business consistently amid reunderwriting initiatives, yet metrics remain elevated in comparison with medical professional liability (MPL) composite averages. Although surplus growth was reported in the two most recent years, capital accumulation has been inhibited somewhat by dividends to PRA, which the parent has utilized for stock repurchases and corporate expenses. AM Best assesses the group's operating performance as adequate, with consistent underwriting losses over the most recent five-year period being more than offset by net investment income and realized capital gains. Underwriting results improved in the most recent year, partially attributable to favorable prior year loss reserve development. Overall operating ratios in recent years have benefited from some improvement in underwriting performance and the ongoing higher interest rate environment relative to earlier periods. The ratings also consider the group's national market position as the fourth-largest writer of MPL insurance in the United States with solid breadth of product offerings across multiple disciplines, as well as geographic diversification. AM Best assesses the group's ERM as appropriate, as the group maintains a developed ERM framework and risk management capabilities that generally are in line with its risk profile. In March 2025, a definitive agreement was reached under which The Doctors Company Insurance Group (TDC Group) agreed to acquire all outstanding shares of PRA for $25 per share in a transaction valued at approximately $1.3 billion. The deal is expected to close in the first half of 2026, subject to customary closing conditions and receipt of regulatory approvals. PRA shareholders voted to approve the acquisition in June 2025 and the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in July 2025, satisfying one of the conditions for the closing of the pending acquisition. The acquisition remains subject to other customary closing conditions, including the receipt of remaining regulatory approvals, and both organizations will continue to operate independently until closing occurs. AM Best does not expect the transaction to have any material change to ProAssurance Group's rating fundamentals at this time but will continue monitoring the progress and effects of this transaction once consummated. The stable outlooks reflect AM Best's expectation that the group will maintain its strongest level of balance sheet strength, supported by effective capital management, while ongoing initiatives implemented by management will maintain stable operating performance, supported by its favorable business profile. Negative rating actions may occur if the group's loss experience continues to impact underwriting profitability negatively and leads to further deterioration in operating performance trends. Negative rating action also may occur if the group's balance sheet strength weakens, which could result from deterioration of risk-adjusted capitalization or adverse reserve development in its workers' compensation or MPL books from rising claims frequency or severity, or changes in regulatory, legislative and judicial actions. While unlikely in the near term, positive rating actions may occur following a positive trend in operating performance that outpaces the group's peers and materially contributes to surplus growth. The FSR of A (Excellent) and the Long-Term ICRs of 'a+' (Excellent) have been affirmed, with stable outlooks for the following members of ProAssurance Group: ProAssurance Indemnity Company, Inc. ProAssurance Specialty Insurance Company Medmarc Casualty Insurance Company ProAssurance Insurance Company of America ProAssurance American Mutual, A Risk Retention Group Allied Eastern Indemnity Company Eastern Advantage Assurance Company Eastern Alliance Insurance Company NORCAL Insurance Company NORCAL Specialty Insurance Company Medicus Insurance Company FD Insurance Company Preferred Physicians Medical Risk Retention Group, a Mutual Insurance Company The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks: ProAssurance Corporation — -- 'bbb+' (Good) on senior unsecured debt -- 'bbb' (Good) on senior 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 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.
Business Wire
02-07-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of ONIX Asigurari S.A.
AMSTERDAM--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of 'bb+' (Fair) of ONIX Asigurari S.A. (ONIX) (Romania). The outlook of these Credit Ratings (ratings) is stable. These ratings reflect ONIX's balance sheet strength, which AM Best assesses as adequate, as well as its strong operating performance, limited business profile and marginal enterprise risk management. ONIX's risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), was assessed at the strongest level at year-end 2024, underpinned by good internal capital generation. However, ONIX's small capital base and its lack of reinsurance protection increase the potential for volatility in risk-adjusted capitalisation, particularly considering its exposure to large surety risks. The company's limited financial flexibility is also considered an offsetting factor in its balance sheet strength assessment. Conversely, AM Best views positively ONIX's conservative investment portfolio, which is entirely made up of cash or term deposits. ONIX's operating performance is assessed at the strong level, reflecting its track record of good technical results since inception. For the five-year period ending in 2024, the company reported a weighted average combined ratio of 55.7%, as calculated by AM Best. Investment profits have improved in recent years, benefiting from the healthy interest rates environment. ONIX is a niche mono-line insurer that focuses on surety business in Italy and Spain. The company leverages its specialist expertise to compete against larger players. Solvency II requirements are embedded within ONIX's risk framework and its Solvency II regulatory capital adequacy ratio is monitored against risk appetite levels approved by its board. The company's risk management framework is evolving, and its risk management capabilities are considered by AM Best to be below the company's risk profile in some areas. 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.
Business Wire
18-06-2025
- Business
- Business Wire
AM Best Revises Issuer Credit Rating Outlook to Positive for Florida Family Insurance Company and Its Subsidiary
BUSINESS WIRE)-- AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of 'bbb' (Good) of Florida Family Insurance Company and its subsidiary, Florida Family Home Insurance Company, which together make up the two pool members of Florida Family Group (Florida Family). The outlook of the FSR is stable. Both companies are domiciled in Bonita Springs, FL. The Credit Ratings (ratings) reflect Florida Family's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The revised outlook to positive from stable for the Long-Term ICR reflects improvements in Florida Family's balance sheet metrics, driven by a series of strategic initiatives undertaken by management. Primarily, beginning in 2022, the company launched a wind exposure reduction program in response to rising reinsurance costs, increased frequency of severe weather events, and an uncertain claims environment. The primary objectives of the program were to lower the probable maximum loss (PML), reduce reinsurance dependency, and enhance the overall risk profile of the book of business to deliver more consistent and dependable results. This effort led to a meaningful decline in wind-related exposures through 2025. Coupled with continued growth in policyholder surplus, lower PMLs and an adequate level of reinsurance coverage, these actions contributed to a notable improvement in Florida Family's risk-adjusted capitalization, which is assessed as strongest, as measured by Best's Capital Adequacy Ratio (BCAR). Florida Family continues to achieve organic surplus growth, further strengthening its balance sheet and supporting a positive trend across key financial metrics. Florida Family continues to achieve organic surplus growth, further strengthening its balance sheet and supporting a positive trend across key financial metrics. Additionally, the wind exposure reduction and other management initiatives are expected to enhance and stabilize operating performance through the enforcement of disciplined underwriting practices. AM Best anticipates that these efforts will help reduce volatility in reported operating results over time. The limited business profile reflects the limited geographic spread of risk in Florida. An appropriate ERM program is maintained through risk appetite and tolerance statements with risk management capabilities appropriately aligned with the concentrated risk profile. 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.
