Moody's Upgrades Allmerica Financial Rating
NU Online News Service, July 8, 4:18 p.m. EDT?Moody's Investors Service said it has raised credit ratings of Worcester, Mass.-based Allmerica Financial Corp.
The New York-based ratings agency also confirmed its "Baa2″ insurance financial strength rating of Hanover Insurance Company, Allmerica Financial's lead property-casualty insurance subsidiary.
The outlook for the group's ratings is stable, Moody's added.
Commenting on its ratings action, Moody's said its confirmation of Hanover's insurance financial strength was based on the expectation that the unit would "continue its historically steady operating performance."
The ratings agency also noted there are some uncertainties about Hanover's future business prospects and operating challenges, particularly in its "underperforming personal lines business."
In 2002, Allmerica Financial posted some $306 million in net income, with $3.3 billion in sales.
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