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April 30, 2025 Reinsurance

First Quarter 2025 Financial Supplement

U.S. Markets via PUBT

FINANCIAL SUPPLEMENT FIRST QUARTER 2025

THE HANOVER INSURANCE GROUP

FINANCIAL SUPPLEMENT

Segment Descriptions 1

Financial Highlights 2

Consolidated Financial Statements

Income Statements 3

Balance Sheets 4

Pre-tax Operating Results and Related Metrics

Consolidated 5-6

Core Commercial 7-8

Specialty 9-10

Personal Lines 11-13

Investments

Net Investment Income and Yields 14

Investment Portfolio 15

Credit Quality and Duration of Fixed Maturities 16

Top 10 Corporate and Municipal Fixed Maturity Holdings 17

Reconciliation of Operating Income to Net Income 18

Other Information

Non-GAAP Financial Measures 19

Premium Related Metric Definitions 20

Corporate Information 21

Market and Dividend Information 21

Financial Strength and Debt Ratings 21

	THE HANOVER INSURANCE GROUP
	BASIS OF PRESENTATION
SEGMENT DESCRIPTIONS
CORE COMMERCIAL
Sub-segment	Customer and business type	Primary lines of business
Small Commercial	Coverage to small businesses, with annual premiums of $50,000 or less;	Business owners' policy/commercial multiple peril
	Products are tailored to specific industry segments as needed.	Commercial automobile
		Workers' compensation
		Other (general liability, commercial umbrella, monoline property)
Middle Market	Coverage to mid-sized businesses with annual premiums starting at $50,000, focusing on those	Commercial multiple peril
	between $50,000 and $250,000. Products are tailored to certain specific industry segments,	Commercial automobile
	including technology, manufacturing, human services, retail, real estate, among others.	Workers' compensation
		Other (general liability, commercial umbrella, monoline property)
SPECIALTY
Sub-segment	Customer and business type	Primary lines of business
Professional and Executive Lines	Coverage to small to mid-sized non-public companies, including lawyer, engineer, accountant, and	Professional liability
	various other professional and advisory firms including healthcare; provide protection for directors,	Management liability
	officers and employees against actual or alleged errors, negligence or bad faith, employment practices.	Fidelity and crime Other property and liability lines for healthcare firms
Specialty Property & Casualty	Program business - coverage to markets with specialty or risk management needs related to groups	Commercial multiple peril
	of similar businesses;	Commercial automobile
	Hanover Specialty Industrial (HSI) - coverage to small and medium chemical, paint, solvent and other manufacturers and distributors; Excess & Surplus - non-admitted general liability and property coverage to risks outside of the	Workers' compensation Other (general liability, commercial umbrella, monoline property)
	appetite of standard commercial lines;
	Specialty General Liability - admitted coverage for higher-hazard liability risks
Marine	Includes coverage for inland and ocean marine, and insures against physical losses to property,	Inland/ocean marine
	such as contractor's equipment, builders' risk and goods in transit. Also covers jewelers block, fine	Ancillary lines of business written through marine agents
	art and other valuables.
Surety and Other	Provides coverage for construction and other firms, as well as sole proprietors in the event of claims	Bond
	for non-performance or non-payment, and commercial surety coverage related to fiduciary or
	regulatory obligations.
PERSONAL LINES
Sub-segment	Customer and business type	Primary lines of business
Personal Automobile	Includes coverage for individuals against losses incurred from personal bodily injury, bodily injury to	Personal automobile
	third parties, property damage to an insured's vehicle, and property damage to other vehicles and
	other property.
Homeowners and Other	Includes coverage for individuals for losses to their residences and personal property, such as those	Homeowners
	caused by fire, wind, hail, water damage (excluding flood), theft and vandalism, and against third-	Personal umbrella
	party liability claims.	Inland Marine (jewelry, art, etc.)
		Other (fire, personal watercraft, other miscellaneous)
OTHER
The Other segment primarily includes earnings on holding company assets; holding company and other expenses, including certain costs associated with retirement benefits due to our former life insurance employees and agents; and our run-off voluntary assumed property and casualty pools, run-off direct asbestos and environmental, and our product liability businesses.

THE HANOVER INSURANCE GROUP

FINANCIAL HIGHLIGHTS

(In millions, except earnings per share)	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025
PREMIUMS
Gross premiums written	$ 1,625.8	$ 1,679.3	$ 1,831.6	$ 1,596.2	$ 1,689.9
Net premiums written	1,454.0	1,521.1	1,663.4	1,445.1	1,510.8
Net premiums earned	1,448.6	1,473.2	1,479.2	1,511.6	1,508.5
EARNINGS
Operating income before interest and taxes	$ 149.7	$ 95.4	$ 150.6	$ 254.4	$ 186.4
Operating income after taxes	111.9	68.1	111.3	194.6	141.8
Income from continuing operations	115.5	40.4	102.1	167.3	128.2
Net income	115.5	40.5	102.1	167.9	128.2
PER SHARE DATA (DILUTED)
Operating income after taxes	$ 3.08	$ 1.88	$ 3.05	$ 5.32	$ 3.87
Income from continuing operations	3.18	1.11	2.80	4.57	3.50
Net income	3.18	1.12	2.80	4.59	3.50
Dilutive weighted average shares outstanding	36.3	36.3	36.5	36.6	36.6
Basic weighted average shares outstanding	35.8	36.0	36.0	36.0	36.0

BALANCE SHEET
	March 31	June 30	September 30	December 31	March 31
(In millions, except per share data)	2024	2024	2024	2024	2025
Total assets	$ 14,594.1	$ 14,872.2	$ 15,367.0	$ 15,274.5	$ 15,470.3
Total loss and loss adjustment expense reserves	7,331.1	7,463.1	7,426.8	7,461.2	7,608.9
Total shareholders' equity	2,522.7	2,552.2	2,877.7	2,841.8	3,044.4
Total shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax	3,018.2	3,040.9	3,126.5	3,242.9	3,335.3
Property and Casualty Companies Statutory surplus	$ 2,762.3	$ 2,810.2	$ 2,893.5	$ 2,971.7	$ 3,098.3
Premium to surplus ratio	2.12:1	2.11:1	2.07:1	2.05:1	1.98:1
Book value per share	$ 70.22	$ 70.96	$ 79.90	$ 79.18	$ 84.56
Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax	$ 84.01	$ 84.56	$ 86.81	$ 90.35	$ 92.64
Tangible book value per share (total book value excluding goodwill and intangibles)	$ 64.80	$ 65.55	$ 74.50	$ 73.75	$ 79.10
Shares outstanding	35.9	36.0	36.0	35.9	36.0
Total debt/equity	31.1 %	30.7 %	27.2 %	27.6 %	25.8 %
Total debt/total capital	23.7 %	23.5 %	21.4 %	21.6 %	20.5 %

THE HANOVER INSURANCE GROUP

CONSOLIDATED STATEMENTS OF INCOME

Three Months ended March 31

(In millions)	2025	2024	% Change
Premiums earned	$ 1,508.5	$ 1,448.6	4.1
Net investment income	106.1	89.7	18.3
Net realized and unrealized investment gains (losses):
Net realized losses from sales and other	(18.8)	(1.3)	N/M
Net change in fair value of equity securities and other	1.0	6.5	(84.6)
Credit-related recoveries on investments	-	0.3	N/M
Total net realized and unrealized investment gains (losses)	(17.8)	5.5	N/M
Fees and other income	6.4	7.3	(12.3)
Total revenues	1,603.2	1,551.1	3.4

LOSSES AND EXPENSES

Losses and loss adjustment expenses	955.3	935.2	2.1
Amortization of deferred acquisition costs	313.9	299.0	5.0
Interest expense	8.5	8.5	-
Other operating expenses	165.4	163.1	1.4
Total losses and expenses	1,443.1	1,405.8	2.7
Income before income taxes	160.1	145.3	10.2
Income tax expense	31.9	29.8	7.0
Net income	$ 128.2	$ 115.5	11.0

THE HANOVER INSURANCE GROUP

CONSOLIDATED BALANCE SHEETS

March 31 December 31

(In millions, except per share data) 2025 2024 % Change

ASSETS

Investments:

Fixed maturities, at fair value (amortized cost of $9,178.7 and $9,051.5)	$ 8,808.3	$ 8,542.2	3.1
Equity securities, at fair value	161.0	157.7	2.1
Other investments	720.2	709.9	1.5
Total investments	9,689.5	9,409.8	3.0
Cash and cash equivalents	315.1	435.5	(27.6)
Accrued investment income	66.0	69.8	(5.4)
Premiums and accounts receivable, net	1,809.0	1,800.8	0.5
Reinsurance recoverable on paid and unpaid losses and unearned premiums	2,034.2	1,994.5	2.0
Deferred acquisition costs	656.9	662.8	(0.9)
Deferred income tax asset	141.9	174.2	(18.5)
Goodwill	178.8	178.8	-
Other assets	493.2	462.6	6.6
Assets of discontinued businesses	85.7	85.7	-
Total assets	$ 15,470.3	$ 15,274.5	1.3

Loss and loss adjustment expense reserves	$ 7,608.9	$ 7,461.2	2.0
Unearned premiums	3,259.3	3,283.3	(0.7)
Expenses and taxes payable	618.6	757.8	(18.4)
Reinsurance premiums payable	45.8	37.7	21.5
Short-term debt	61.8	61.8	-
Long-term debt	722.5	722.3	-
Liabilities of discontinued businesses	109.0	108.6	0.4
Total liabilities	12,425.9	12,432.7	(0.1)
SHAREHOLDERS' EQUITY

LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES

Preferred stock, par value $0.01 per share;

20.0 million shares authorized; none issued - - -Common stock, par value $0.01 per share; 300.0 million shares

authorized; 60.5 million shares issued	0.6	0.6	-
Additional paid-in capital	1,978.3	1,973.6	0.2
Accumulated other comprehensive loss	(344.7)	(456.3)	(24.5)
Retained earnings	3,306.8	3,209.6	3.0
Treasury stock at cost (24.5 million and 24.6 million shares)	(1,896.6)	(1,885.7)	0.6
Total shareholders' equity	3,044.4	2,841.8	7.1
Total liabilities and shareholders' equity	$ 15,470.3 $	15,274.5	1.3

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS CONSOLIDATED

Three Months ended March 31

2025

2024

(In millions, except percentage data)	Core Commercial	Specialty	Personal Lines	Other	Total		Core Commercial	Specialty	Personal Lines	Other	Total
Gross premiums written	$ 693.1 $	424.4 $	572.4 $	- $ 1,689.9		$ 660.0 $		408.4 $	557.4 $	- $ 1,625.8
Net premiums written	$ 604.6 $	358.3 $	547.9 $	- $ 1,510.8		$ 582.4 $		339.8 $	531.8 $	- $ 1,454.0
Net premiums earned	$ 541.0 $	339.6 $	627.9 $	- $ 1,508.5		$ 528.9 $		320.9 $	598.8 $	- $ 1,448.6
Losses and LAE:
Current year, excluding catastrophe losses	334.2	173.3	372.2	-	879.7	309.4		156.6	392.7	-	858.7
Prior year favorable development, excluding catastrophe losses	(1.3)	(15.9)	(2.8)	-	(20.0)	(9.2)		(1.1)	(0.1)	-	(10.4)
Current year catastrophe losses	54.5	17.2	35.9	-	107.6	24.5		10.2	59.2	-	93.9
Prior year favorable catastrophe development	(8.5)	(2.5)	(1.0)	-	(12.0)	(3.8)		(3.2)	-	-	(7.0)
Total losses and LAE	378.9	172.1	404.3	-	955.3	320.9		162.5	451.8	-	935.2
Amortization of deferred acquisition costs and other underwriting expenses	182.1	126.3	161.9	-	470.3	177.1		119.5	156.1	-	452.7
GAAP underwriting profit (loss)	(20.0)	41.2	61.7	-	82.9	30.9		38.9	(9.1)	-	60.7
Net investment income	48.0	24.3	30.5	3.3	106.1	40.8		20.3	25.6	3.0	89.7
Other income	1.3	1.3	3.7	0.1	6.4	1.3		1.3	4.0	0.7	7.3
Other operating expenses	(2.5)	(2.2)	(1.7)	(2.6)	(9.0)	(1.5)		(1.7)	(1.6)	(3.2)	(8.0)
Operating income before income taxes	$ 26.8 $	64.6 $	94.2	$ 0.8 $	186.4	$ 71.5		$ 58.8 $	18.9 $	0.5 $	149.7
Loss and LAE ratio:
Current year, excluding catastrophe losses	61.7 %	51.1 %	59.2 %	N/M	58.3 %	58.5 %		48.7 %	65.6 %	N/M	59.3 %
Prior year favorable development, excluding catastrophe losses	(0.2)%	(4.7)%	(0.4)%	N/M	(1.3)%	(1.7)%		(0.3)%	-	N/M	(0.7)%
Current year catastrophe losses	10.1 %	5.0 %	5.8 %	N/M	7.1 %	4.6 %		3.2 %	9.9 %	N/M	6.5 %
Prior year favorable catastrophe development	(1.6)%	(0.7)%	(0.2)%	N/M	(0.8)%	(0.7)%		(1.0)%	-	N/M	(0.5)%
Total loss and LAE ratio	70.0 %	50.7 %	64.4 %	N/M	63.3 %	60.7 %		50.6 %	75.5 %	N/M	64.6 %
Expense ratio	33.4 %	37.0 %	25.3 %	N/M	30.8 %	33.2 %		37.0 %	25.5 %	N/M	30.9 %
Combined ratio	103.4 %	87.7 %	89.7 %	N/M	94.1 %	93.9 %		87.6 %	101.0 %	N/M	95.5 %

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RELATED RATIOS CONSOLIDATED

(In millions, except percentage data)	Q1 2024		Q2 2024	Q3 2024	Q4 2024		Q1 2025
Gross premiums written	$ 1,625.8		$ 1,679.3	$ 1,831.6	$ 1,596.2		$ 1,689.9
Net premiums written	$ 1,454.0		$ 1,521.1	$ 1,663.4	$ 1,445.1		$ 1,510.8
Net premiums earned	$ 1,448.6		$ 1,473.2	$ 1,479.2	$ 1,511.6		$ 1,508.5
Losses and LAE:
Current year, excluding catastrophe losses	858.7		867.9	862.1	860.2		879.7
Prior year favorable development, excluding catastrophe losses	(10.4)		(17.4)	(14.0)	(25.6)		(20.0)
Current year catastrophe losses	93.9		177.1	115.9	31.0		107.6
Prior year favorable catastrophe development	(7.0)		(20.0)	(10.0)	(5.0)		(12.0)
Total losses and LAE		935.2	1,007.6	954.0		860.6		955.3
Amortization of deferred acquisition costs and other underwriting expenses		452.7	459.4	464.7		493.9		470.3
GAAP underwriting profit		60.7	6.2	60.5		157.1		82.9
Net investment income		89.7	90.4	91.8		100.7		106.1
Other income		7.3	7.6	6.7		6.4		6.4
Other operating expenses		(8.0)	(8.8)	(8.4)		(9.8)		(9.0)
Operating income before income taxes	$ 149.7		$ 95.4	$ 150.6	$ 254.4		$ 186.4
Loss and LAE ratio:
Current year, excluding catastrophe losses		59.3 %	58.9 %	58.2 %		56.9 %		58.3 %
Prior year favorable development, excluding catastrophe losses		(0.7)%	(1.2)%	(0.9)%		(1.7)%		(1.3)%
Current year catastrophe losses		6.5 %	12.1 %	7.9 %		2.0 %		7.1 %
Prior year favorable catastrophe development		(0.5)%	(1.4)%	(0.7)%		(0.3)%		(0.8)%
Total loss and LAE ratio		64.6 %	68.4 %	64.5 %		56.9 %		63.3 %
Expense ratio		30.9 %	30.8 %	31.0 %		32.3 %		30.8 %
Combined ratio		95.5 %	99.2 %	95.5 %		89.2 %		94.1 %
Combined ratio, excluding catastrophe losses		89.5 %	88.5 %	88.3 %	87.5 %			87.8 %
Current accident year combined ratio, excluding catastrophe losses		90.2 %	89.7 %	89.2 %	89.2 %			89.1 %

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS CORE COMMERCIAL

(In millions, except percentage data) Gross premiums written

Net premiums written

Net premiums earned Losses and LAE:

Current year, excluding catastrophe losses

Prior year favorable development, excluding catastrophe losses Current year catastrophe losses

Prior year favorable catastrophe development

Total losses and LAE

Amortization of deferred acquisition costs and other underwriting expenses

GAAP underwriting profit (loss)

Net investment income Other income

Other operating expenses

Operating income before income taxes

Loss and LAE ratio:

Current year, excluding catastrophe losses

Prior year favorable development, excluding catastrophe losses Current year catastrophe losses

Prior year favorable catastrophe development

Total loss and LAE ratio Expense ratio

Combined ratio

Combined ratio, excluding catastrophe losses

Current accident year combined ratio, excluding catastrophe losses

Q1 2024

$ 660.0

$ 582.4

$ 528.9

309.4

(9.2)

24.5

(3.8)

320.9

177.1

30.9

40.8

1.3

(1.5)

$ 71.5

58.5 %

(1.7)%

4.6 %

(0.7)%

60.7 %

33.2 %

93.9 %

90.0 %

91.7 %

Q2 Q3 Q4

2024 2024 2024

$ 587.0 $ 682.5 $ 573.6

$ 513.4 $ 599.2 $ 500.5

$ 537.4 $ 533.3 $ 549.2

299.7 310.2 323.3

(2.1) (3.6) (2.8)

30.9 38.2 15.9

(14.5) (6.5) (7.5)

314.0 338.3 328.9

180.6 180.4 193.8

42.8 14.6 26.5

41.4 42.1 46.1

1.2 1.2 1.3

(2.2) (2.0) (2.9)

$ 83.2 $ 55.9 $ 71.0

55.7 % 58.2 % 58.9 %

(0.4)% (0.7)% (0.5)%

5.8 % 7.1 % 2.9 %

(2.7)% (1.2)% (1.4)%

58.4 % 63.4 % 59.9 %

33.4 % 33.6 % 35.1 %

91.8 % 97.0 % 95.0 %

88.7 % 91.1 % 93.5 %

89.1 % 91.8 % 94.0 %

Q1 2025

$ 693.1

$ 604.6

$ 541.0

334.2

(1.3)

54.5

(8.5)

378.9

182.1

(20.0)

48.0

1.3

(2.5)

$ 26.8

61.7 %

(0.2)%

10.1 %

(1.6)%

70.0 %

33.4 %

103.4 %

94.9 %

95.1 %

THE HANOVER INSURANCE GROUP

PREMIUMS WRITTEN AND RELATED METRICS CORE COMMERCIAL

(In millions, except percentage data)	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025
Written Premium
Gross	$ 660.0	$ 587.0	$ 682.5	$ 573.6	$ 693.1
Ceded	(77.6)	(73.6)	(83.3)	(73.1)	(88.5)
Net	$ 582.4	$ 513.4	$ 599.2	$ 500.5	$ 604.6
Growth	3.0%	5.5%	1.7%	7.5%	3.8%
Net premiums written by sub-segment
Small Commercial	$ 336.0	$ 316.5	$ 310.0	$ 301.3	$ 341.8
Middle Market	246.4	196.9	289.2	199.2	262.8
Total	$ 582.4	$ 513.4	$ 599.2	$ 500.5	$ 604.6
Net premiums written by line of business
Commercial Multiple Peril	$ 287.0	$ 252.7	$ 317.7	$ 260.0	$ 298.8
Commercial Automobile	105.7	96.9	103.9	91.7	114.2
Workers' Compensation	124.5	104.5	100.1	92.9	123.5
Other Core Commercial	65.2	59.3	77.5	55.9	68.1
Total	$ 582.4	$ 513.4	$ 599.2	$ 500.5	$ 604.6
Related Metrics
Premium Retention	82.3%	83.2%	83.2%	85.0%	84.4%
Renewal Price Change	11.5%	11.7%	12.9%	11.8%	11.1%

THE HANOVER INSURANCE GROUP

Q1 2024

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS SPECIALTY

(In millions, except percentage data) Gross premiums written

Net premiums written Net premiums earned Losses and LAE:

Current year, excluding catastrophe losses

Prior year favorable development, excluding catastrophe losses Current year catastrophe losses

Prior year favorable catastrophe development

Total losses and LAE

Amortization of deferred acquisition costs and other underwriting expenses

GAAP underwriting profit Net investment income Other income

Other operating expenses

Operating income before income taxes

Loss and LAE ratio:

Current year, excluding catastrophe losses

Prior year favorable development, excluding catastrophe losses Current year catastrophe losses

Prior year favorable catastrophe development

Total loss and LAE ratio Expense ratio

Combined ratio

Combined ratio, excluding catastrophe losses

Current accident year combined ratio, excluding catastrophe losses

$ 408.4

$ 339.8

$ 320.9

156.6

(1.1)

10.2

(3.2)

162.5

119.5

38.9

20.3

1.3

(1.7)

$ 58.8

48.7%

(0.3)%

3.2%

(1.0)%

50.6 %

37.0 %

87.6 %

85.4 %

85.7 %

Q2 Q3 Q4

2024 2024 2024

$ 409.8 $ 408.9 $ 383.9

$ 352.1 $ 350.2 $ 331.8

$ 330.5 $ 331.2 $ 339.4

175.7 158.9 164.2

(11.3) (10.2) (23.6)

27.6 7.9 6.5

(5.5) (3.5) (2.5)

186.5 153.1 144.6

122.0 125.5 133.1

22.0 52.6 61.7

20.5 20.9 22.8

1.8 1.6 1.2

(1.7) (2.1) (2.4)

$ 42.6 $ 73.0 $ 83.3

53.1 % 48.0 % 48.4 %

(3.4)% (3.1)% (7.0)%

8.4 % 2.4 % 1.9 %

(1.7)% (1.1)% (0.7)%

56.4 % 46.2 % 42.6 %

36.7 % 37.7 % 39.0 %

93.1 % 83.9 % 81.6 %

86.4 % 82.6 % 80.4 %

89.8 % 85.7 % 87.4 %

Q1 2025

$ 424.4

$ 358.3

$ 339.6

173.3

(15.9)

17.2

(2.5)

172.1

126.3

41.2

24.3

1.3

(2.2)

$ 64.6

51.1 %

(4.7)%

5.0 %

(0.7)%

50.7 %

37.0 %

87.7 %

83.4%

88.1%

THE HANOVER INSURANCE GROUP PREMIUMS WRITTEN AND RELATED METRICS SPECIALTY

(In millions, except percentage data)	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025
Written Premiums
Gross	$ 408.4	$ 409.8	$ 408.9	$ 383.9	$ 424.4
Ceded	(68.6)	(57.7)	(58.7)	(52.1)	(66.1)
Net	$ 339.8	$ 352.1	$ 350.2	$ 331.8	$ 358.3
Growth	4.8%	8.2%	3.4%	8.8%	5.4%
Net premiums written by sub-segment
Professional and Executive Lines	$ 112.8	$ 106.6	$ 114.8	$ 106.1	$ 120.4
Specialty Property & Casualty	107.9	109.5	97.8	106.1	105.7
Marine	99.5	115.3	112.2	99.9	109.0
Surety and Other	19.6	20.7	25.4	19.7	23.2
Total	$ 339.8	$ 352.1	$ 350.2	$ 331.8	$ 358.3
Related Metrics
Premium Retention	83.1%	83.0%	81.5%	81.9%	80.1%
Renewal Price Change	11.0%	11.7%	10.1%	9.5%	8.4%

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

PERSONAL LINES

Three Months ended March 31

		2025			2024
(In millions, except percentage data)	Auto	Home and Other	Total	Auto	Home and Other	Total
Net premiums written	$ 323.8	$ 224.1	$ 547.9	$ 317.0	$ 214.8	$ 531.8
Net premiums earned	$ 365.3	$ 262.6	$ 627.9	$ 348.9	$ 249.9	$ 598.8
Losses and LAE:
Current year, excluding catastrophe losses	244.5	127.7	372.2	256.4	136.3	392.7
Prior year unfavorable (favorable) development, excluding catastrophe losses	(2.0)	(0.8)	(2.8)	(5.8)	5.7	(0.1)
Current year catastrophe losses	2.4	33.5	35.9	3.9	55.3	59.2
Prior year unfavorable (favorable) catastrophe development	(0.4)	(0.6)	(1.0)	0.8	(0.8)	-
Total losses and LAE	244.5	159.8	404.3	255.3	196.5	451.8
Amortization of deferred acquisition costs and other underwriting expenses			161.9			156.1
GAAP underwriting profit (loss)			61.7			(9.1)
Net investment income			30.5			25.6
Other income			3.7			4.0
Other operating expenses			(1.7)			(1.6)
Operating income before income taxes			$ 94.2			$ 18.9
Loss and LAE ratio:
Current year, excluding catastrophe losses	66.9 %	48.7 %	59.2 %	73.6 %	54.5 %	65.6 %
Prior year unfavorable (favorable) development, excluding catastrophe losses	(0.5)%	(0.3)%	(0.4)%	(1.7)%	2.3 %	-
Current year catastrophe losses	0.6 %	12.7 %	5.8 %	1.1 %	22.1 %	9.9 %
Prior year unfavorable (favorable) catastrophe development	(0.1)%	(0.2)%	(0.2)%	0.2 %	(0.3)%	-
Total loss and LAE ratio	66.9 %	60.9 %	64.4 %	73.2 %	78.6 %	75.5 %
Expense ratio			25.3 %			25.5 %
Combined ratio			89.7 %			101.0 %

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME (LOSS) INFORMATION AND RELATED RATIOS PERSONAL LINES

(In millions, except percentage data)	Q1 2024		Q2 Q3 2024 2024	Q4 2024	Q1 2025
Gross premiums written	$ 557.4		$ 682.5 $ 740.2	$ 638.7	$ 572.4
Net premiums written	$ 531.8		$ 655.6 $ 714.0	$ 612.8	$ 547.9
Net premiums earned	$ 598.8		$ 605.3 $ 614.7	$ 623.0	$ 627.9
Losses and LAE:
Current year, excluding catastrophe losses	392.7		392.5 393.0	372.7	372.2
Prior year favorable development, excluding catastrophe losses	(0.1)		(4.0) (0.2)	(0.6)	(2.8)
Current year catastrophe losses	59.2		118.6 69.8	8.6	35.9
Prior year unfavorable (favorable) catastrophe development	-		- -	5.0	(1.0)
Total losses and LAE		451.8	507.1 462.6	385.7		404.3
Amortization of deferred acquisition costs and other underwriting expenses		156.1	156.8 158.8	167.0		161.9
GAAP underwriting profit (loss)		(9.1)	(58.6) (6.7)	70.3		61.7
Net investment income		25.6	26.0 26.3	28.8		30.5
Other income		4.0	3.9 3.9	3.9		3.7
Other operating expenses		(1.6)	(1.7) (1.8)	(1.9)		(1.7)
Operating income (loss) before income taxes	$ 18.9		$ (30.4) $ 21.7	$ 101.1	$ 94.2
Loss and LAE ratio:
Current year, excluding catastrophe losses		65.6 %	64.9 % 63.9 %	59.8 %		59.2 %
Prior year favorable development, excluding catastrophe losses		-	(0.7)% -	(0.1)%		(0.4)%
Current year catastrophe losses		9.9 %	19.6 % 11.4 %	1.4 %		5.8 %
Prior year unfavorable (favorable) catastrophe development		-	- -	0.8 %		(0.2)%
Total loss and LAE ratio		75.5 %	83.8 % 75.3 %	61.9 %		64.4 %
Expense ratio		25.5 %	25.3 % 25.3 %	26.2 %		25.3 %
Combined ratio		101.0 %	109.1 % 100.6 %	88.1 %		89.7 %
Combined ratio, excluding catastrophe losses		91.1 %	89.5 % 89.2 %	85.9 %		84.1 %
Current accident year combined ratio, excluding catastrophe losses		91.1 %	90.2 % 89.2 %	86.0 %		84.5 %

THE HANOVER INSURANCE GROUP

PREMIUMS WRITTEN AND RELATED METRICS PERSONAL LINES

(In millions, except percentage data)	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025
Written Premiums
Gross	$ 557.4	$ 682.5	$ 740.2	$ 638.7	$ 572.4
Ceded	(25.6)	(26.9)	(26.2)	(25.9)	(24.5)
Net	$ 531.8	$ 655.6	$ 714.0	$ 612.8	$ 547.9
Growth	0.0%	3.3%	6.8%	6.6%	3.0%
Net premiums written by line of business
Personal Automobile	$ 317.0	$ 382.8	$ 411.1	$ 352.7	$ 323.8
Homeowners and Other	214.8	272.8	302.9	260.1	224.1
Total	$ 531.8	$ 655.6	$ 714.0	$ 612.8	$ 547.9
Related Metrics
Renewal Price Change
Personal Automobile	18.2%	18.0%	14.9%	13.9%	11.8%
Homeowners	30.2%	19.1%	16.2%	14.6%	14.9%
Total (1)	22.8%	18.5%	15.4%	14.2%	13.1%
Policy Retention
Personal Automobile	79.6%	81.2%	82.8%	81.3%	81.4%
Homeowners	80.3%	82.7%	84.6%	83.2%	82.4%
Total (1)	79.9%	82.0%	83.7%	82.2%	82.0%
PIF change from prior year period
Personal Automobile	-5.5%	-7.6%	-8.5%	-7.0%	-4.9%
Homeowners	-4.7%	-6.9%	-7.8%	-6.1%	-4.0%
Total (1)	-5.1%	-7.3%	-8.2%	-6.6%	-4.4%

(1) Related metrics exclude Other Personal Lines.

THE HANOVER INSURANCE GROUP

NET INVESTMENT INCOME AND YIELDS

(In millions, except yields)	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025
Net Investment Income
Fixed maturities	$ 75.7	$ 76.5	$ 82.3	$ 89.9	$ 93.3
Limited partnerships	9.2	1.4	4.0	6.0	7.5
Mortgage loans	3.7	3.9	3.6	3.2	2.9
Equity securities	0.8	0.8	0.8	0.8	0.9
Other investments	3.8	11.5	5.2	4.7	5.3
Investment expenses	(3.5)	(3.7)	(4.1)	(3.9)	(3.8)
Total	$ 89.7	$ 90.4	$ 91.8	$ 100.7	$ 106.1
Pre-tax Yields
Fixed maturities	3.52%	3.53%	3.73%	3.99%	4.08%
Total	3.70%	3.73%	3.70%	3.97%	4.14%

Pre-tax yields represent annualized net investment income for the period divided by the monthly average invested assets at amortized cost or cost, which excludes accumulated changes in fair value for fixed maturities and equity securities.

THE HANOVER INSURANCE GROUP

(In millions)

INVESTMENT PORTFOLIO

March 31, 2025

Change in

Weighted Amortized Net Net Average Cost Fair Value / % of Unrealized Unrealized

Investment Type Quality or Cost (1) Carry Value Total Gain (Loss) YTD

Fixed maturities:

U.S. Treasury and government agencies	AA+	$ 538.8	$ 492.7	4.9%	$ (46.1)	$ 12.3
Foreign governments	BB	2.3	2.4	-	0.1	-
Municipals: Taxable	AA	948.9	860.6	8.7%	(88.3)	19.7
Tax-exempt	AA	23.5	23.3	0.2%	(0.2)	(0.5)
Corporates: NAIC 1	A	1,921.7	1,892.8	18.9%	(28.9)	32.1
NAIC 2	BBB	1,673.1	1,612.8	16.1%	(60.3)	26.9
NAIC 3 and below	B+	435.3	433.2	4.4%	(2.1)	(3.3)
Total corporates	BBB+	4,030.1	3,938.8	39.4%	(91.3)	55.7
Asset-backed: Residential mortgage-backed	AA+	2,375.7	2,263.0	22.6%	(112.7)	40.8
Commercial mortgage-backed	AAA	436.9	404.6	4.0%	(32.3)	9.7
Other asset-backed	AAA	822.5	822.9	8.2%	0.4	1.2
Total fixed maturities	A+	9,178.7	8,808.3	88.0%	(370.4)	138.9
Limited partnerships and other investments		426.1	426.1	4.3%	-	-
Mortgage and other loans		294.1	294.1	3.0%	-	-
Equity securities		161.0	161.0	1.6%	-	-
Total investments		10,059.9	9,689.5	96.9%	(370.4)	138.9
Cash and cash equivalents		315.1	315.1	3.1%	-	-
Total		$ 10,375.0	$ 10,004.6	100.0%	$ (370.4)	$ 138.9
(1) Net of allowance for credit losses of $6.2 million.

THE HANOVER INSURANCE GROUP

CREDIT QUALITY AND DURATION OF FIXED MATURITIES

March 31, 2025

(In millions) CREDIT QUALITY OF FIXED MATURITIES
Rating Agency	Amortized	Fair	% of Total
NAIC Designation Equivalent Designation	Cost (1)	Value	Fair Value
1 Aaa/Aa/A	$ 7,062.3	$ 6,755.1	76.7%
2 Baa	1,673.0	1,612.8	18.3%
3 Ba	226.5	227.4	2.6%
4 B	189.0	187.7	2.1%
5 Caa	22.7	21.3	0.2%
6 In or near default	5.2	4.0	0.1%
Total fixed maturities	$ 9,178.7	$ 8,808.3	100.0%
DURATION OF FIXED MATURITIES
	Amortized	Fair	% of Total
	Cost (1)	Value	Fair Value
0-2 Years	$ 1,703.0	$ 1,699.7	19.3%
2-4 Years	1,861.0	1,841.0	20.9%
4-6 Years	2,408.8	2,251.3	25.6%
6-8 Years	2,835.9	2,690.1	30.5%
8-10 Years	221.5	208.5	2.4%
10+ Years	148.5	117.7	1.3%
Total fixed maturities	$ 9,178.7	$ 8,808.3	100.0%
Weighted Average Duration		4.5
(1) Net of allowance for credit losses of $0.5 million.

THE HANOVER INSURANCE GROUP

TOP 10 CORPORATE AND MUNICIPAL FIXED MATURITY HOLDINGS

March 31, 2025

(In millions, except percentage data)

Issuer	Amortized Cost	Fair Value	As a Percent of Invested Assets	Ratings
Morgan Stanley	$ 43.5	$ 42.6	0.43%	A-
Minnesota Housing Finance Agency	40.0	33.5	0.34%	AAA
Goldman Sachs	34.8	34.1	0.34%	BBB+
State of Ohio	33.8	28.1	0.28%	AAA
Citigroup	32.4	31.8	0.32%	A-
Colorado Housing & Finance Authority	32.3	30.4	0.30%	AAA
Bank of America	29.6	29.3	0.29%	A-
District of Columbia	26.5	23.2	0.23%	AAA
Massachusetts School Building Authority	26.3	22.4	0.22%	AA+
JPMorgan Chase	26.1	25.8	0.26%	A
Top 10 Corporate and Municipal	$ 325.3	$ 301.2	3.01%

THE HANOVER INSURANCE GROUP

RECONCILIATION OF OPERATING INCOME TO NET INCOME

Three Months ended March 31

	2025			2024
(In millions, except per share data)	$	Per Share (Diluted)		$	Per Share (Diluted)
OPERATING INCOME
Core Commercial	$ 26.8			$ 71.5
Specialty	64.6			58.8
Personal Lines	94.2			18.9
Other	0.8			0.5
Total	186.4		149.7
Interest expense	(8.5)		(8.5)
Operating income before income taxes	177.9	$ 4.86	141.2		$ 3.89
Income tax expense on operating income	(36.1)	(0.99)	(29.3)		(0.81)
Operating income after income taxes	141.8	3.87	111.9		3.08
Non-operating items:
Net realized losses from sales and other	(18.8)	(0.51)	(1.3)		(0.04)
Net change in fair value of equity securities and other	1.0	0.03	6.5		0.18
Credit-related recoveries on investments	-	-	0.3		0.01
Other non-operating items	-	-	(1.4)		(0.04)
Income tax benefit (expense) on non-operating items	4.2	0.11	(0.5)		(0.01)
NET INCOME	$ 128.2	$ 3.50	$ 115.5		$ 3.18

THE HANOVER INSURANCE GROUP

Non-GAAP Financial Measures

The Hanover uses non-GAAP financial measures as important measures of the Company's operating performance, which we believe provide investors with additional information regarding management's evaluation of our results of operations and financial performance. The Company's non-GAAP measures include operating income before interest expense and income taxes, total operating income after income taxes, total operating income after income taxes per diluted share, total book value per share, total book value per share excluding net unrealized gains and losses related to fixed maturity investments and market risk, net of tax, tangible book value per share and measures of operating income and combined ratios excluding catastrophe losses (catastrophe losses as discussed here and in all other measures include catastrophe loss development) and reserve development.

Operating income before interest expense and income taxes is net income, excluding interest expense on debt, income taxes and net realized and unrealized investment gains and losses, which includes changes in the fair value of equity securities still held because fluctuations in these gains and losses are determined by interest rates, financial markets and the timing of sales. Operating income before interest expense and income taxes also excludes net gains and losses on disposals of businesses, discontinued operations, restructuring costs, the cumulative effect of accounting changes and certain other items. Operating income before interest expense and income taxes is the sum of the operating income from: Core Commercial, Specialty, Personal Lines, and Other. After-tax operating income earnings per diluted share (sometimes referred to as "after-tax operating income per share") is also a non-GAAP measure. It is defined as net income excluding the after-tax impact of net realized and unrealized investment gains (losses), as well as results from discontinued operations and other non-operating items for a period divided by the average number of diluted shares of common stock. The Hanover believes that measures of operating income before interest expense and income taxes provide investors with a valuable measure of the performance of the Company's ongoing businesses because they highlight net income attributable to the core operations of the business.

Book value per share is total shareholders' equity divided by the number of common shares outstanding. Book value per share excluding net unrealized gains and losses related to fixed maturity investments, net of tax, is total shareholders' equity excluding the after-tax effect of unrealized investment gains and losses on fixed maturities and market risk divided by the number of common shares outstanding. Tangible book value per share is total shareholders' equity, excluding goodwill and intangible assets, divided by the number of common shares outstanding.

The Hanover also provides measures of operating results and loss ratios that exclude the effects of catastrophe losses. A catastrophe is a severe loss, resulting from natural or manmade events. Catastrophes caused by various natural events include, among others, hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fire, explosions, severe winter weather and other convective storms. Catastrophes caused by various manmade events include, among others, fire, explosions, riots, and terrorism. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or loss amount in advance. The Hanover believes that providing certain financial metrics and trends excluding the effects of catastrophes is meaningful for investors to understand the variability of periodic earnings and loss ratios.

Prior year reserve development, which can be favorable or unfavorable, represents changes in our estimate of the costs to pay claims from prior years. We believe that a discussion of operating income excluding prior year reserve development is helpful to investors since it provides insight into both our estimate of current year accident results and changes to prior-year reserve estimates.

Operating income before and after interest expense and income taxes and measures of operating income that exclude the effects of catastrophe losses or reserve development should not be construed as substitutes for income before income taxes and operating income should not be construed as a substitute for net income determined in accordance with GAAP. A reconciliation of income to operating income before interest expense and income taxes and income per diluted share to operating income after taxes per diluted share for the three ended March 31, 2025 and 2024 is set forth on page 18 of this document. The presentation of loss ratios calculated excluding the effects of reserve development and/or catastrophe losses should not be construed as a substitute for loss ratios determined in accordance with GAAP.

Additional reconciliations are provided in the press release relating to the current period(s) financial results, which is available on the Company's website, https://www.hanover.com.

THE HANOVER INSURANCE GROUP

PREMIUM RELATED METRIC DEFINITIONS

Renewal Price Change

Core Commercial and Specialty: Represents the average change in premium on renewed policies caused by the estimated net effect of base rate changes, discretionary pricing, specific inflationary changes or changes in policy level exposure or insured risks.
Personal Lines: Represents the average change in premium on policies charged at renewal caused by the net effects of filed rate, inflation adjustments or other changes in policy level exposure or insured risks, regardless of whether or not the policies are retained for the duration of their contractual terms.

Rate
Core Commercial and Specialty: Represents the average change in premium on renewed policies caused by the base rate changes, discretionary pricing, and inflation, excluding the impact of changes in policy level exposure or insured risks.
Personal Lines: Represents the estimated cumulative premium effect of approved rate actions applied to policies at renewal, regardless of whether or not policies are actually renewed. Accordingly, rate changes do not represent actual increases or decreases realized by the company. Personal Lines rate changes do not include inflation or changes in policy level exposure or insured risks.

Retention
Core Commercial and Specialty: Represents the ratio of net retained premium for the noted period to the premium available to renew over the same period.
Personal Lines: Represents the ratio of net retained policies for the noted period to those policies available to renew over the same period and includes policies that were canceled and rewritten.

Policies in Force (PIF) Change
Represents the change in the number of policies in force at the end of a given period from the end of the same period in the prior year.

CORPORATE OFFICES AND PRINCIPAL SUBSIDIARIES

THE HANOVER INSURANCE GROUP, INC.

440 Lincoln Street

Worcester, MA 01653

The Hanover Insurance Company

440 Lincoln Street

Worcester, MA 01653

Citizens Insurance Company of America

808 North Highlander Way Howell, MI 48843

MARKET AND DIVIDEND INFORMATION

The following tables set forth the high and low closing sale prices of our common stock and quarterly cash dividends for the periods indicated:

INDUSTRY RATINGS AS OF April 30, 2025

A.M.

Financial Strength Ratings Best S&P Global Moody's

The Hanover Insurance

Company A A A2 Citizens Insurance Company

of America A A -

A.M.

Debt Ratings Best S&P Global Moody's

The Hanover Insurance Group, Inc.

Senior Debt bbb+ BBB Baa2 Subordinated Debentures bbb- BB+ Baa3

The above ratings are accurate as of April 30, 2025, and may be revised, superseded or withdrawn by the respective rating agency at any time. For the most current information concerning the financial ratings of The Hanover Insurance Group and its subsidiaries, please visit the websites of the

TRANSFER AGENT

Computershare Investor Services PO Box 43006

Providence, RI 02940-3006

1-800-317-4454

COMMON STOCK

Common stock of The Hanover Insurance Group, Inc. is traded on the New York Stock Exchange under the symbol "THG".

INQUIRIES

Oksana Lukasheva Senior Vice President Corporate Finance

[email protected]

Quarter Ended

2025

Price Range

Dividends

respective rating agencies.

HighLowPer Share

March 31 $174.61 $147.13 $0.900

Quarter Ended

2024

Price Range

Dividends

	High	Low	Per Share
March 31	$136.58	$122.20	$0.850
June 30	$137.56	$120.84	$0.850
September 30	$149.58	$123.93	$0.850
December 31	$165.01	$144.81	$0.900

Attachments

Disclaimer

The Hanover Insurance Group Inc. published this content on April 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2025 at 20:13 UTC.

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FINANCIAL SUPPLEMENT

TABLE OF CONTENTS

Segment Descriptions 1

Financial Highlights 2

Consolidated Financial Statements

Pre-tax Operating Results and Related Metrics

Investments

Reconciliation of Operating Income to Net Income 18

Other Information

CONSOLIDATED STATEMENTS OF INCOME

CONSOLIDATED BALANCE SHEETS

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RELATED RATIOS CONSOLIDATED

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS CORE COMMERCIAL

PREMIUMS WRITTEN AND RELATED METRICS CORE COMMERCIAL

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS SPECIALTY

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

PERSONAL LINES

GAAP UNDERWRITING AND OPERATING INCOME (LOSS) INFORMATION AND RELATED RATIOS PERSONAL LINES

PREMIUMS WRITTEN AND RELATED METRICS PERSONAL LINES

NET INVESTMENT INCOME AND YIELDS

INVESTMENT PORTFOLIO

March 31, 2025

Change in

Weighted Amortized Net Net Average Cost Fair Value / % of Unrealized Unrealized

Investment Type Quality or Cost (1) Carry Value Total Gain (Loss) YTD

CREDIT QUALITY AND DURATION OF FIXED MATURITIES

March 31, 2025

TOP 10 CORPORATE AND MUNICIPAL FIXED MATURITY HOLDINGS

March 31, 2025

RECONCILIATION OF OPERATING INCOME TO NET INCOME

Non-GAAP Financial Measures

PREMIUM RELATED METRIC DEFINITIONS

Renewal Price Change

Rate

Retention

Policies in Force (PIF) Change

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Annuity News

Health/Employee Benefits News

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