Heritage
The Hanover Insurance Group, Inc. was formed in 1852 in New York City to protect businesses and homeowners facing the common 19th Century hazard of fire. From just a few rooms in a building near Manhattan’s Hanover Square—from which the company took its name—the company grew rapidly.
After firmly establishing itself in the insurance world of the 1850s, the company survived a number of catastrophic fires that destroyed many insurance companies. Instead, The Hanover continued to grow strongly.
By the early 20th Century, The Hanover began to expand its business to include automobile and marine insurance policies and by 1916, auto insurance was a significant business.
At the time of the 1929 stock market crash, The Hanover’s holdings were largely liquid, so the impact from this event was minimal. In fact, The Hanover was one of only five large U.S. fire insurance companies that had a larger book of business in 1935 than it did in 1930.
Following World War II, vast changes occurred in American business and The Hanover would be part of that change. In 1964, the highly successful Citizens Insurance of Michigan joined Worcester, Massachusetts-based State Mutual Life Insurance Company to expand beyond its Midwestern markets. In 1969 The Hanover became affiliated with State Mutual and gained access to new resources for product development, underwriting, data processing, investment and claim, policyholder and Agent services. It was also at this time that The Hanover moved to Worcester to reduce the operating costs associated with its location in New York City.
By 1979 The Hanover was consistently outperforming the industry and becoming a recognized and trusted name in local markets. The company began introducing numerous new products and services, along with new data processing systems that enhanced productivity and service.
In 1995, State Mutual became a publicly-traded company, renaming itself Allmerica Financial Corporation. Throughout the 1990s, The Hanover worked even more closely with its Allmerica affiliates, leveraging the considerable resources of the group to improve its products and services such as electronic funds transfer and computer links with Agents.
At the same time, The Hanover continued to emphasize its traditional strengths—its regional focus and local market knowledge, established relationships with high-quality, service-minded Agents, and underwriting discipline.
From 2003 to 2004, the company restructured to significantly improve its financial position, organization and operating model. Under CEO Fred Eppinger’s direction, the company also refocused on becoming a world-class property and casualty company that provided the “best of both”—the financial strength and products of a national company with the local market knowledge and service of a regional insurer.
In 2004 and 2005, the company demonstrated its financial strength by weathering an unprecedented string of major hurricanes. Despite these challenges, the company strengthened its reserves and delivered record net earnings. In 2005, the company made the strategic decision to sell its life insurance affiliates.
With this sale, and after making tremendous progress in all areas of its property and casualty business, the company changed its name from Allmerica Financial Corporation to The Hanover Insurance Group, Inc.
The Hanover, as it is known today, is the holding company for The Hanover Insurance Company, Citizens Insurance Company of America and their affiliates. As a stronger, more focused company, Our policy is performance.™
