Moody's lifts Hanover view to positive

Moody's Investors Service said it changed the outlook of The Hanover Insurance Group, Inc. and its subsidiary, Hanover Insurance Co., to positive from stable.

The agency said the change in outlook reflects the stronger risk-adjusted capitalization of the property and casualty operations as a result of improved operating earnings and the retention of capital by these operations in recent years. The group's risk-adjusted capitalization is also supported by its reserve strength, which has been strong historically owing to lack of adverse reserve development in all but one of the past ten accident years.

These positive factors are partly offset by Hanover's limited scale, relatively high cost structure and geographic concentration in a limited number of states, Moody's said.

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