Recent Ratings Roundup: Travelers; Hanover; Amica Mutual

May 24, 2007

Standard & Poor’s Ratings Services has assigned its “A-” rating to Travelers Companies Inc.’s $1.5 billion senior notes, which mature in 2012, 2017, and 2037. The company intends to use the proceeds to pay down its $442 million, 5.01 percent senior notes due Aug. 13, 2007, and $42 million of medium-term notes maturing before year-end 2007 as well as for general corporate purposes. “The counterparty credit rating on Travelers is based on the group’s very strong market position and strong operating performance,” stated S&P credit analyst John Item.

A.M. Best Co. has affirmed the financial strength rating (FSR) of “A-” (Excellent) and issuer credit ratings (ICR) of “a-” of Worcester, Mass.-based Hanover Insurance Group Property and Casualty Companies and its members. Best also affirmed the ICR and debt ratings of “bbb-” for the senior debt and “bb” for capital securities of the publicly traded holding company, The Hanover Insurance Group, Inc. The outlook for the ratings has been revised to positive from stable. The affirmations and the positive outlook reflect Hanover’s “excellent risk-adjusted capitalization, stemming from improved operating earnings and the elimination of dividends last paid to The Hanover Group in 2002,” said Best.

A.M. Best Co. has affirmed the financial strength rating (FSR) of “A++” (Superior) and assigned issuer credit ratings (ICR) of “aa+” to Amica Mutual Group. These ratings also apply to the lead company, Amica Mutual Insurance Company and its other affiliates, Amica Lloyd’s of Texas and Amica Property & Casualty Insurance Company. Best also affirmed the FSR of “A+” (Superior) and assigned an ICR of “aa-“to Amica Life Insurance Company. The outlook for all ratings is stable. Best said it based the affirmations on Amica’s “outstanding capitalization, solid operating performance and well-established market position as one of the 60 largest property/casualty insurers in the United States.”

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