Ratings agency AM Best has assigned a financial strength rating of A (Excellent) to the Bermuda-based Hanover Atlantic Insurance Company, which was created in April 2016.
According to AM Best, the ratings recognise the 100 percent reinsurance agreement between Hanover Atlantic and its parent, The Hanover Insurance Company (HIC).
The outlook assigned to each rating is stable. Both companies are rating unit members of the Hanover Insurance Group Property and Casualty Companies (The Hanover).
Hanover Atlantic was formed to support HIC’s diversification efforts by expanding its excess and surplus (E&S) lines product offerings in the United States for its network of independent retail agents and brokers.
The types of business written will include, but not limited to, property/casualty, fire, professional liability, directors and officers, and medical professional errors and omissions coverage.
According to AM Best, future positive rating actions could occur if The Hanover’s favourable risk-adjusted capitalisation can be sustained and underwriting results improve. However, renewed pressure on The Hanover’s ratings could result from a return to unfavourable operating trends seen in prior years.