A.M. Best Comments on the Planned Acquisition of Verlan Fire Insurance Company by The Hanover Insurance Group, Inc.

A.M. Best Co. has commented that the financial strength rating (FSR) of A (Excellent) and issuer credit rating (ICR) of "a” of Verlan Fire Insurance Company (Verlan Fire) (Silver Spring, MD) are unchanged following the recently announced definitive agreement by The Hanover Insurance Group, Inc. (Hanover) (Worcester, MA) (NYSE: THG) to acquire the privately held Verlan Holdings, Inc. (VHI) (Silver Spring, MD). VHI is the immediate parent of Verlan Fire. The Hanover Insurance Group Property and Casualty Insurance Companies’ (The Hanover) (Worcester, MA) FSR of A- (Excellent) and ICRs of "a-” and Hanover’s ICR of "bbb-” are also unchanged. Hanover is the holding company for The Hanover. The all cash transaction is expected to close in early March 2008. In the near term, The Hanover has no plans to change the current operating structure, market focus or management of Verlan Fire. As such, A.M. Best does not expect any significant shift in Verlan Fire’s historically strong operating results and capitalization. Furthermore, The Hanover’s significant capital resources and market depth will provide additional financial flexibility to Verlan Fire going forward. For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.