AM Best Lifts Mid-Hudson Group’s Outlooks to Stable

AM Best has revised the outlooks to stable from negative of the companies collectively referred to as Mid-Hudson Group (MHG) and domiciled in Montgomery, New York. At the same time, the ratings agency affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Ratings of “bbb-” (Good) of the same companies: Claverack Cooperative Insurance Co., Midrox Insurance Co., and Mid-Hudson Co-Operative Insurance Co. AM Best analysts explained that the revised outlooks to stable from negative reflect improvements in MHG’s operating profitability as well as its risk-adjusted capitalization, in 2025 and continuing in 2026. The revision also recognizes the group’s appropriate enterprise risk management (ERM) when assessing, measuring and mitigating its catastrophe risk through reinsurance. Additionally, the revision to stable from negative reflects MHG’s improved operating performance metrics following “multiple corrective actions” that led to favorable underwriting income and pre-tax operating gains in 2025, as well as its lowest combined ratio during the latest five-year period (2021-2025). According to AM Best, the corrective actions implemented included tightening of underwriting guidelines; reductions in habitational and farm owner exposures, and multiple rate increases that restored profitability following a period of volatility. The credit ratings reflect Mid-Hudson Group’s balance sheet strength, which AM Best aanalysts said they assess as adequate, as well as its “marginal operating performance, limited business profile and appropriate ERM.” AM Best noted that MHG’s adequate balance sheet strength assessment is positioned comfortably with over 16% surplus growth in 2025 and supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best has maintained its limited business profile assessment for MHG’s given the company’s geographic concentration in New York State. The analysts also said its ERM program reflects capabilities that are “aligned with the scope and scale” of the company. MHG is a personal property carrier that writes commercial multi-peril, dwelling fire and homeowners coverages. In February 2026, Mid-Hudson Co-Operative Insurance Co. expanded its geographic footprint by paying $4 million to acquire all the stock of Hanover Fire Holdings, Inc. and its subsidiary, Hanover Fire & Casualty Insurance Co. The transaction was financed by a $3.5 million bank loan. Hanover writes predominantly personal property lines of business including fire and other liability, burglary/theft, allied lines and homeowners in Pennsylvania. At the time, AM Best noted that the acquisition affords MHG the potential to add new products, pricing flexibility, and greater geographic diversification of premium sources. AM Best also said that although debt leverage would be increased for the group, it was within an acceptable range of AM Best guidelines. Further, with this acquisition, risk-adjusted capitalization was expected to remain at a level that supports the consolidated group, the ratings agency said. AM Best placed under review with negative implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Hanover Fire & Casualty Insurance pending approval by the regulatory bodies and AM Best’s evaluation of the integration and future business plans. Topics Trends AM Best