Hanover Insurance stock rating yesteryear A.M. Best Co : A.M. Best Co. has assigned a debt rating of "bb+" to the 40-year $175 1000000 6.35% fixed charge per unit of measurement junior subordinated debentures of late issued yesteryear The Hanover Insurance Group Inc (Hanover, Inc.) (Worcester, MA) [NYSE: THG]. Additionally, A.M. Best has assigned indicative ratings of "bbb" on senior unsecured debt, "bb+" on junior subordinated debt as well as "bb+" on the preferred stock of the of late filed shelf registration of Hanover, Inc. The outlook assigned to all ratings is stable. All existing ratings of Hanover, Inc. as well as its subsidiaries are unchanged.
The rating assignments recognize Hanover P&C Group's (Hanover) favorable risk-adjusted capitalization as well as mostly positive operating results despite meaning catastrophic weather-related action inward the US of America inward recent years. The ratings likewise recognize Hanover's proactive as well as comprehensive adventure management, its meaning U.S. marketplace seat presence inward commercial as well as personal lines, every bit good every bit enterprise turn a profit inward its international segment generated yesteryear its United Kingdom of Great Britain as well as Northern Ireland subsidiary, Chaucer Holdings, PLC.
As of Dec 31, 2012, Hanover, Inc.'s unadjusted debt-to-capital as well as debt-to-tangible upper-case missive of the alphabet ratios were 24.7% as well as 26.1%, respectively. The additional borrowings of $175 1000000 volition upshot inward a slight growth of the unadjusted debt-to-capital as well as debt-to-tangible upper-case missive of the alphabet ratios to 27.1% as well as 28.5%, respectively, which rest good inside the fiscal leverage guidelines for its assigned ratings.
While Hanover Inc.'s fixed accuse coverage declined inward 2012 from historical levels, largely due to a meaning growth inward catastrophe as well as weather-related losses (primarily from Hurricane Sandy), historical involvement coverage has been supportive of its ratings.
The methodology used inward determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating procedure as well as contains the unlike rating criteria employed inward the rating process. Key criteria utilized include: "Insurance Holding Company as well as Debt Ratings"; "Equity Credit for Hybrid Securities"; as well as "Risk Management as well as the Rating Process for Insurance Companies." Best's Credit Rating Methodology tin sack survive flora at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest as well as close authoritative insurance rating as well as data source. For to a greater extent than information, catch www.ambest.com.