Moody's: Hanover Insurance unchanged

Moody's Investors Service said that the ratings of the Hanover Insurance Group, Inc. (senior debt at Baa3 / stable) and Hanover Insurance Co. (insurance financial strength at A3 / stable) remain unchanged following completion of the sale of its remaining life insurance business, First Allmerica Financial Life Insurance Co., to Commonwealth Annuity and Life Insurance Co., a Goldman Sachs company.

According to the agency, the Ba1 insurance financial strength rating of First Allmerica remains on review for possible upgrade, subject to consideration of any explicit support to be provided by Goldman Sachs (senior unsecured at A1 / negative).

According to Moody's, the sale of First Allmerica is an incremental positive to Hanover as it allows the company to monetize the capital in this run-off business and increase holding company cash by over $200 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.