News details

- Upgrade Reflects Excellent Risk-Adjusted Capitalization, Improved Financial Flexibility, Improved Operating Earnings -

- Positive Rating Action Stands out in Today's Environment -

WORCESTER, Mass., May 8 /PRNewswire-FirstCall/ -- The Hanover Insurance Group, Inc. (NYSE: THG) announced today that the A.M. Best Company upgraded the financial strength ratings of its property and casualty companies to "A" from "A-". The financial strength upgrades apply to The Hanover Insurance Company, Citizens Insurance Company of America, the companies of the AIX Group, and all of their subsidiary companies.

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In a news release announcing its decision to upgrade The Hanover's financial strength ratings, A.M. Best cited the company's "excellent risk-adjusted capitalization, stemming from improved operating earnings," "improved underwriting performance and favorable reserve development," as well as "improved financial leverage and financial flexibility since 2003." A.M. Best also recognized the benefits from the sale of The Hanover's life insurance business.

Best's action represents the third time The Hanover's financial strength ratings have been upgraded over the past 15 months. Two of the industry's other leading, independent analysts, Moody's Investors Service and Standard & Poor's, upgraded the company's ratings last year.

"It is a significant accomplishment to earn an "A" rating any time," said Frederick H. Eppinger, chief executive officer of The Hanover Insurance Group. "It is even more meaningful now, however, in light of the prevailing environment and at a time when rating agencies are upgrading so few company ratings.

"We are very pleased Best has recognized the strength of our company's franchise," Eppinger said. "While many companies around us are distracted and constrained by the environment, we are more focused, more committed and better prepared than ever to work with our agent partners to capitalize on the tremendous opportunities in our business.

"Much about our industry will be re-defined over the next 12 to 24 months, and there most certainly will be winners and losers," Eppinger said. "We are determined to be counted among the winners."

About The Hanover

The Hanover Insurance Group, Inc. (NYSE: THG), based in Worcester, Mass., is the holding company for a group of insurers that includes The Hanover Insurance Company, also based in Worcester; Citizens Insurance Company of America, headquartered in Howell, Mich., and their affiliates. The Hanover offers a wide range of property and casualty products and services to individuals, families and businesses through an extensive network of independent agents, and has been meeting its obligations to its agent partners and their customers for more than 150 years. Taken as a group, The Hanover ranks among the top 40 property and casualty insurers in the United States. For more information, please visit www.hanover.com.

    CONTACTS:
    Investor Relations                  Media Relations
    Robert P. Myron                     Michael F. Buckley
    rmyron@hanover.com                  mibuckley@hanover.com
    (508) 855-3457                      (508) 855-3099

SOURCE The Hanover Insurance Group, Inc.