C
Hanover Fire & Casualty Ins Co
Rating Date
October 2025
NAIC
Classification
Risk Adjusted
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Loss
Ratio
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Assets
Capital
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Premiums
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Major Rating Factors: Weak overall results on stability tests (2.2 on a scale of 0 to 10) including weak risk diversification and fair risk adjusted capital in prior years. The largest net exposure for one risk is acceptable at 2.6% of capital. Fair profitability index (4.5) with operating losses during 2020, 2022 and 2023. Return on equity has been low, averaging 0.5% over the past five years. Good long-term capitalization index (5.1) based on good current risk adjusted capital (severe and moderate loss scenarios) reflecting some improvement over results in 2020.
Other Rating Factors: Ample reserve history (9.3) that helps to protect the company against sharp claims increases. Excellent liquidity (7.5) with ample operational cash flow and liquid investments.
Stability Factors: D - Limited diversification of general business, policy, and/or investment risk. R - Concerns about the financial strength of its reinsurers. T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business: Fire (55.6%), homeowners (8.7%), other (35.8%)
Licensed in: AZ, DC, DE, GA, IL, IN, KY, MD, MN, NJ, NV, OH, PA, TN, WV
Principal Investments: Investment grade bonds (54.0%), common stock (22.2%), cash (17.2%), other (6.6%)
Ratios
Premium to Surplus
Reserve to Surplus
1-Year Reserve Development
2-Year Reserve Development
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Net Premium Growth
Investments in Affiliates
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Corporate Info
Group Affiliation
None
Investment Rating
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Company Address
295 South Gulph Road
King of Prussia, PA 19406
Phone Number
(610) 940-1165
NAIC Number
17337
Largest Affiliates
No affiliate information available.