The Andover Companies homeowners insurance

Overview

The Andover Companies is a Massachusetts property insurer made up of three pooled carriers: Merrimack Insurance Company, Cambridge Insurance Company and Bay State Insurance Company. It writes homeowners, condo, renters, dwelling fire and small-business policies, sold only through independent agents. Andover Group ranked #43 among U.S. homeowners insurance groups by 2025 direct premiums written, with $606.1 million (0.32% of the national market), according to NAIC market share data.

Massachusetts is the anchor. In 2025 Andover was the fourth-largest homeowners insurer in Massachusetts ($276.2 million, 6.85% of the market), behind MAPFRE, Liberty Mutual and Safety Insurance. It was fifth in Rhode Island (5.49%) and eighth in New Hampshire (4.13%). Based on NAIC data, Massachusetts supplies a little under half of its homeowners premium, and AM Best says homeowners makes up the majority of what the pool writes directly.

The balance sheet is the other thing to know. Andover reported $4.89 billion of assets and $3.08 billion of surplus at the end of 2025 against $1.12 billion of premiums written, and AM Best puts its risk-adjusted capitalization at the strongest level. It is rated A (Excellent) by AM Best.

History

Andover's history starts in 1828, when bankers, mill owners and property holders in the mill town of Andover met at a local tavern and formed Merrimack Mutual Fire Insurance Company, owned by its policyholders, to protect the town against fire. AM Best records Merrimack's incorporation as February 11, 1828. Cambridge Mutual Fire Insurance Company, incorporated in 1833, was acquired by Merrimack in 1913, according to the company, and Bay State Insurance Company was added in 1955. As of AM Best's 2025 report, Merrimack owned about 99.3% of Bay State, and the three companies shared management and pooled premiums, losses and expenses: Merrimack 50%, Cambridge 35%, Bay State 15%.

Coastal exposure has shaped the group before. In 2004 Cambridge Mutual Fire and Merrimack Mutual Fire began nonrenewing homeowners on Cape Cod, where they covered about 14,000 homes, sending about 1,200 notices a month, as rising reinsurance costs shrank the Cape's voluntary market, the Massachusetts Division of Insurance said at the time.

The biggest recent change is structural. Effective January 1, 2026, with approval from the Massachusetts Division of Insurance and policyholders, Andover reorganized into a mutual holding company. Merrimack Mutual and Cambridge Mutual converted to stock companies, renamed Merrimack Insurance Company and Cambridge Insurance Company, and became subsidiaries of an intermediate holding company owned by a new mutual holding company, The Andover Companies, Inc. Policyholders' mutual ownership now sits at the holding company level; Andover says the structure will improve efficiency and open strategic opportunities. In January 2025 Andover also invested in Mereo, a Bermuda reinsurance start-up chaired by former AIG chief executive Brian Duperreault. Charles "Chuck" DiGrande is president and chief executive.

Homeowners coverage

Andover's homeowners product is the Superior Home Insurance Protection Plan. Several features that many insurers sell as add-ons come built in: ordinance or law coverage, replacement cost on contents, and open perils coverage on personal property. That means belongings are covered against any cause not specifically excluded, closer to an HO-5 than a basic HO-3 (see The HO-5 comprehensive form: is it worth the upgrade?). Depending on the state, the plan may also include personal injury coverage, refrigerated property, lock replacement, higher limits for silverware, business property, money and lost or stolen jewelry and furs, coverage for a small home day care (no more than three children), snowmobiles, and boats up to 32 feet (power) or 40 feet (sail).

Optional coverages include Home Systems Protection with service line coverage for breakdowns of home systems and underground utility lines, water backup and sump discharge or overflow, identity recovery, home cyber protection, scheduled personal property, theft of materials from a dwelling under construction, and personal umbrella policies. Condo, renters and dwelling fire policies are also sold. Flood is excluded, as on standard homeowners policies, and your policy form and state endorsements control.

Discounts and savings

Andover lists a home and auto bundling discount, an Andover account credit, protective device and alarm service discounts, a new dwelling credit, a customer loyalty credit, a credit for a hardwired generator and a non-smokers credit. AM Best notes that Andover's rating system steers toward what it considers desirable risks, using insurance scores. A good credit-based insurance score is likely to matter for price and eligibility.

Where it sells and recent market moves

Andover writes in eight states: Massachusetts, Maine, New Hampshire, Rhode Island, Connecticut, New York, New Jersey and, outside the Northeast, Illinois. AM Best's 2025 report puts New York second to Massachusetts in 2024 direct premiums across all lines, followed by New Jersey, Connecticut and Illinois. Andover also assumes personal property reinsurance from domestic and international partners, about 15% of net premiums written according to AM Best's 2025 report, which diversifies its results beyond Northeast weather.

Rates are still climbing. In Maine, the Bureau of Insurance's August 2026 rate list shows Merrimack Insurance Company's homeowners rates going up 7.5% effective August 14, 2026, affecting 17,227 policyholders, after a 6.7% increase in 2025. In early 2026 Andover placed a $250 million Locke Tavern Re catastrophe bond, running to the end of March 2029, to replace a $175 million bond from 2023 that was due to mature in April 2026.

Claims

You can report a claim 24/7 through the myAndover customer portal, by calling 800-225-0770, or through your agent. Business hours are 8:15 a.m. to 4:30 p.m. Eastern on weekdays; non-emergency claims phoned in after hours are processed the next business day, so if the home is livable and everyone is safe, Andover suggests filing online. Andover asks policyholders not to make permanent repairs before a company representative has inspected the damage, though you should still take reasonable steps to protect the property (see reasonable repairs: what you can fix before the adjuster comes).

Ratings and reputation

AM Best affirmed the Andover Companies Pool's financial strength rating of A (Excellent) and its long-term issuer credit rating of "a+" on September 25, 2025, both with stable outlooks. AM Best assessed the balance sheet as very strong, with risk-adjusted capitalization at the strongest level, operating performance as adequate and the business profile as favorable. It flagged very high common stock leverage, which exposes surplus to stock market swings, and underwriting losses in three of the five years through 2024, offset by investment income. Andover says the group has been rated A (Excellent) or higher since 1940. No J.D. Power ranking was found.

Who it suits

Andover suits homeowners in Massachusetts and nearby states who want an independent agent and a carrier with a long record and unusually large capital, and who value open-perils contents and replacement cost on belongings as standard features. It suits less well buyers who want to purchase online or by phone, people outside its eight states, and properties that score poorly on its insurance-score underwriting.

• Strengths: fourth-largest home insurer in Massachusetts in 2025; $3.08 billion of surplus at year-end 2025; A (Excellent) from AM Best (affirmed September 2025), A or better since 1940; open-perils contents and replacement cost on contents included in its homeowners plan.
• Weaknesses: sold only through independent agents; non-emergency claims phoned in after hours wait until the next business day; heavy stock-market exposure in its investments; homeowners rate increases of 6.7% and 7.5% in Maine in 2025 and 2026.

How to contact The Andover Companies