NU Online News Service, Dec. 4, 2:00 p.m. EST
A.M. Best Co. is leaving the financial ratings and outlook of the Hanover Insurance Group unchanged in the wake of the company's purchase of a book of business from OneBeacon Insurance Group.
A.M. Best analysts said they are leaving the ratings unchanged because what's involved is business in Hanover's current small commercial and middle market, with the majority written by agents that already have a relationship with Hanover.
Specifically, Hanover has entered into a definitive agreement to purchase the renewal rights to parts of a book of business from OneBeacon that covers all applicable business with policies effective as of Jan. 1, 2010 and beyond.
The analysts said the deal will have only a "modest" impact on Hanover's premium leverage, and they estimate that the
overall operational impact also will be modest given Hanover's experience with previous acquisitions.
In addition, the analysts said, Hanover has produced favorable operating earnings in recent years and "maintains excellent risk-adjusted capitalization."
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