Ratings Roundup: Hanover/Professionals Direct

Standard & Poor’s Ratings Services and A.M. Best Co.both published their respective reactions to the The Hanover Insurance Group’s acquisition of Professionals Direct Insurance Company.

S&P affirmed its “BB+” counterparty credit and senior unsecured debt ratings and its “B+” preferred stock rating assigned to The Hanover Insurance Group (THG), as well as the “BBB+” counterparty credit and financial strength ratings on Hanover Insurance Co., Citizens Insurance Co. of America, and other rated P/C affiliates (collectively, Hanover). The outlook on the ratings is positive. The affirmation followed details of the announcement that THG will acquire Professionals Direct (PDIC) for $23.2 million. PFLD is the holding company for PDIC. It writes professional liability coverage for attorneys in 36 states. PDIC has a “BBB” financial strength rating. In a related announcement S&P said it has revised its outlook on PDIC to positive from stable and has affirmed its “BBB” counterparty credit and financial strength ratings, following tha acquisition announcement.

Best commented that the its ratings on Grand Rapids, Mich.-based PDIC) and its parent holding company, Professionals Direct, or PFLD would “remain unchanged following the acquisition announcement.