EX-99.2

EX-99.2 3 thg-ex99_2.htm EX-99.2 EX-99.2

Exhibit 99.2

FINANCIAL SUPPLEMENT
FOURTH QUARTER 2022


THE HANOVER INSURANCE GROUP
FINANCIAL SUPPLEMENT



TABLE OF CONTENTS


Segment Descriptions....................................................................................................	1
Financial Highlights.........................................................................................................	2
Consolidated Financial Statements
Income Statements.............................................................................................................	3
Balance Sheets...................................................................................................................	4
Pre-tax Operating Results and Related Metrics
Consolidated.......................................................................................................................	5-7
Core Commercial...............................................................................................................	8-9
Specialty..............................................................................................................................	10-11
Personal Lines....................................................................................................................	12-15
Investments
Net Investment Income and Yields.....................................................................................	16
Investment Portfolio.............................................................................................................	17
Credit Quality and Duration of Fixed Maturities...............................................................	18
Top 25 Corporate and Municipal Fixed Maturity Holdings.............................................	19
Reconciliation of Operating Income (Loss) to Net Income (Loss)......................	20
Other Information
Non-GAAP Financial Measures........................................................................................	21
Premium Related Metric Definitions.................................................................................	22
Corporate Information.........................................................................................................	23
Market and Dividend Information......................................................................................	23
Financial Strength and Debt Ratings................................................................................	23


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; Products are tailored to specific industry segments as needed.	● Business owners' policy/commercial multiple peril ● 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 between $50,000 and $250,000. Products are tailored to certain specific industry segments, including technology, manufacturing, human services, retail, real estate, among others.	● Commercial multiple peril ● Commercial automobile ● 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 various other professional and advisory firms including healthcare; provide protection for directors, officers and employees against actual or alleged errors, negligence or bad faith, employment practices.	● Professional liability ● Management liability ● 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 of similar businesses; 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 appetite of standard commercial lines; Specialty General Liability - admitted coverage for higher-hazard liability risks	● Commercial multiple peril ● Commercial automobile ● Workers' compensation ● Other (general liability, commercial umbrella, monoline property)

Marine	Includes coverage for inland and ocean marine, and insures against physical losses to property, such as contractor's equipment, builders' risk and goods in transit. Also covers jewelers block, fine art and other valuables.	● Inland/ocean marine ● Ancillary lines of business written through marine agents

Surety and Other	Provides coverage for construction and other firms, as well as sole proprietors in the event of claims for non-performance or non-payment, and commercial surety coverage related to fiduciary or regulatory obligations.	● Bond
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 third parties, property damage to an insured's vehicle, and property damage to other vehicles and other property.	● Personal automobile


THE HANOVER INSURANCE GROUP

FINANCIAL HIGHLIGHTS


		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Dec-YTD		Dec-YTD
(In millions, except earnings per share)		2021		2021		2021		2021		2022		2022		2022		2022 (1)		2021		2022
PREMIUMS
Gross premiums written	$	1,337.6	$	1,342.8	$	1,493.2	$	1,170.7	$	1,470.1	$	1,473.9	$	1,660.3	$	1,476.5	$	5,344.3	$	6,080.8
																				-
Net premiums written		1,196.1		1,207.2		1,375.2		1,214.9		1,312.3		1,332.8		1,505.4		1,326.0		4,993.4		5,476.5
																				-
Net premiums earned		1,161.8		1,179.8		1,186.0		1,242.6		1,263.8		1,293.8		1,331.2		1,363.5		4,770.2		5,252.3

EARNINGS
Operating income (loss) before interest and taxes	$	85.1	$	137.3	$	47.0	$	162.9	$	154.4	$	115.0	$	53.9	$	(38.2)	$	432.3	$	285.1
Operating income (loss) after taxes		61.4		104.0		30.8		122.1		117.7		83.9		35.7		(37.4)		318.3		199.9
Income (loss) from continuing operations		92.8		129.6		34.8		162.8		105.3		22.8		0.6		(11.9)		420.0		116.8
Net income (loss)		92.7		128.5		34.0		163.5		104.8		22.6		0.2		(11.6)		418.7		116.0

PER SHARE DATA (DILUTED)
																		-		-
Operating income (loss) after taxes	$	1.66	$	2.85	$	0.85	$	3.38	$	3.26	$	2.32	$	0.99	$	(1.05)	$	8.73	$	5.53
																				-
Income (loss) from continuing operations		2.52		3.55		0.96		4.51		2.91		0.63		0.02		(0.33)		11.52		3.23
Net income (loss)		2.51		3.52		0.94		4.53		2.90		0.63		0.01		(0.33)		11.49		3.21
																		-		-
Dilutive weighted average shares outstanding		36.9		36.5		36.3		36.1		36.1		36.1		36.1		36.1		36.4		36.1
																		-		-
Basic weighted average shares outstanding		36.4		35.9		35.7		35.5		35.5		35.6		35.6		35.6		35.9		35.6


BALANCE SHEET
		March 31		June 30		September 30		December 31		March 31		June 30		September 30		December 31
(In millions, except per share data)		2021		2021		2021		2021		2022		2022		2022		2022
Total assets	$	13,448.0	$	13,728.1	$	14,105.3	$	14,254.3	$	13,847.2	$	13,600.9	$	13,745.9	$	13,997.2
Total loss and loss adjustment expense reserves		6,223.7		6,343.4		6,540.1		6,447.6		6,512.2		6,606.9		6,774.0		7,012.6
Total shareholders' equity		3,046.8		3,154.0		3,102.3		3,144.9		2,832.8		2,571.8		2,295.9		2,325.6
Total shareholders' equity, excluding net unrealized appreciation (depreciation)
on fixed maturity investments, net of tax		2,804.2		2,849.3		2,845.5		2,960.0		3,027.8		3,031.2		3,002.6		2,967.0

Property and Casualty Companies
Statutory surplus	$	2,667.7	$	2,547.1	$	2,548.4	$	2,720.0	$	2,809.6	$	2,693.5	$	2,681.8	$	2,690.4
Premium to surplus ratio		1.75:1		1.88:1		1.92:1		1.83:1		1.82:1		1.94:1		2.00:1		2.03:1

Book value per share	$	84.21	$	88.23	$	87.04	$	88.59	$	79.58	$	72.20	$	64.59	$	65.38
Book value per share, excluding net unrealized appreciation (depreciation)
on fixed maturity investments, net of tax	$	77.50	$	79.71	$	79.84	$	83.38	$	85.06	$	85.10	$	84.47	$	83.41
Tangible book value per share (total book value excluding goodwill and intangibles)	$	78.78	$	82.76	$	81.54	$	83.08	$	74.09	$	66.73	$	59.11	$	59.90
Shares outstanding		36.2		35.8		35.6		35.5		35.6		35.6		35.6		35.6
Total debt/equity		25.6 %		24.8 %		25.2 %		24.8 %		27.6 %		30.4 %		34.1 %		33.6 %
Total debt/total capital		20.4 %		19.9 %		20.1 %		19.9 %		21.6 %		23.3 %		25.4 %		25.2 %

(1) Operating loss after income taxes, loss from continuing operations, net of taxes and net loss metrics are calculated using basic shares outstanding due to antidilution.


THE HANOVER INSURANCE GROUP

CONSOLIDATED INCOME STATEMENTS

	Three Months ended December 31					Year ended December 31
(In millions)		2022		2021	% Change		2022		2021	% Change

Premiums earned	$	1,363.5	$	1,242.6	9.7	$	5,252.3	$	4,770.2	10.1
Net investment income		75.9		79.5	(4.5)		296.3		310.7	(4.6)
Net realized and unrealized investment gains (losses):
Net realized gains (losses) from sales and other		(10.2)		(2.2)	N/M		(26.5)		4.6	N/M
Net change in fair value of equity securities		42.8		53.2	(19.5)		(63.3)		119.1	N/M
Recoveries (impairments) on investments:
Credit-related recoveries (impairments)		(0.4)		(0.3)	33.3		(1.9)		0.3	N/M
Losses on intent to sell securities		-		(0.3)	N/M		(14.8)		(1.0)	N/M
		(0.4)		(0.6)	(33.3)		(16.7)		(0.7)	N/M
Total net realized and unrealized investment gains (losses)		32.2		50.4	(36.1)		(106.5)		123.0	N/M
Fees and other income		7.1		6.0	18.3		26.5		23.9	10.9
Total revenues		1,478.7		1,378.5	7.3		5,468.6		5,227.8	4.6

LOSSES AND EXPENSES

Losses and loss adjustment expenses		1,050.8		763.8	37.6		3,623.4		3,134.2	15.6
Amortization of deferred acquisition costs		283.9		254.2	11.7		1,093.2		982.7	11.2
Interest expense		8.6		8.5	1.2		34.1		34.0	0.3
Other operating expenses		150.1		147.2	2.0		573.9		555.6	3.3
Total losses and expenses		1,493.4		1,173.7	27.2		5,324.6		4,706.5	13.1

Income (loss) from continuing operations before income taxes		(14.7)		204.8	N/M		144.0		521.3	(72.4)
Income tax expense (benefit)		(2.8)		42.0	N/M		27.2		101.3	(73.1)
Income (loss) from continuing operations		(11.9)		162.8	N/M		116.8		420.0	(72.2)
Discontinued operations (net of taxes):
Income from Chaucer business		-		1.2	N/M		-		1.2	N/M
Income (loss) from discontinued life businesses		0.3		(0.5)	N/M		(0.8)		(2.5)	(68.0)
Net income (loss)	$	(11.6)	$	163.5	N/M	$	116.0	$	418.7	(72.3)


THE HANOVER INSURANCE GROUP

CONSOLIDATED BALANCE SHEETS

		December 31		December 31
(In millions, except per share data)		2022		2021	% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $8,294.5 and $7,514.8)	$	7,481.8	$	7,723.9	(3.1)
Equity securities, at fair value		241.9		661.3	(63.4)
Other investments		786.1		767.4	2.4
Total investments		8,509.8		9,152.6	(7.0)
Cash and cash equivalents		305.0		230.9	32.1
Accrued investment income		54.5		49.8	9.4
Premiums and accounts receivable, net		1,601.4		1,469.5	9.0
Reinsurance recoverable on paid and unpaid losses and unearned premiums		1,964.5		1,907.3	3.0
Deferred acquisition costs		604.8		552.0	9.6
Deferred income tax asset		199.2		-	N/M
Goodwill		178.8		178.8	-
Other assets		493.0		606.3	(18.7)
Assets of discontinued businesses		86.2		107.1	(19.5)
Total assets	$	13,997.2	$	14,254.3	(1.8)

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
Loss and loss adjustment expense reserves	$	7,012.6	$	6,447.6	8.8
Unearned premiums		2,954.2		2,734.9	8.0
Expenses and taxes payable		731.7		907.7	(19.4)
Deferred income tax liability		-		60.8	N/M
Reinsurance premiums payable		70.3		55.1	27.6
Debt		782.4		781.6	0.1
Liabilities of discontinued businesses		120.4		121.7	(1.1)
Total liabilities		11,671.6		11,109.4	5.1

SHAREHOLDERS' EQUITY
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		1,913.1		1,887.2	1.4
Accumulated other comprehensive income (loss)		(705.5)		122.2	N/M
Retained earnings		2,988.8		2,983.2	0.2
Treasury stock at cost (24.9 million and 25.0 million shares)		(1,871.4)		(1,848.3)	1.2
Total shareholders' equity		2,325.6		3,144.9	(26.1)
Total liabilities and shareholders' equity	$	13,997.2	$	14,254.3	(1.8)


THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
CONSOLIDATED

Three Months ended December 31

		2022										2021

		Core				Personal						Core				Personal
(In millions, except percentage data)		Commercial		Specialty		Lines		Other		Total		Commercial		Specialty		Lines		Other		Total
Gross premiums written	$	520.1	$	374.1	$	582.3	$	-	$	1,476.5	$	484.9	$	346.0	$	339.8	$	-	$	1,170.7
				-				-						-
Net premiums written	$	453.2	$	309.5	$	563.3	$	-	$	1,326.0	$	427.9	$	284.8	$	502.2	$	-	$	1,214.9
				-				-						-
Net premiums earned	$	503.0	$	308.4	$	552.1	$	-	$	1,363.5	$	468.4	$	277.5	$	496.7	$	-	$	1,242.6
				-				-						-
Losses and LAE:
				-				-						-
Current year, excluding catastrophe losses		302.7		158.8		401.1		-		862.6		271.9		145.7		321.6		-		739.2
								-						-
Prior year unfavorable (favorable) development, excluding catastrophe losses		(2.4)		-		(0.2)		1.2		(1.4)		(7.2)		(4.2)		(3.0)		-		(14.4)
								-				-		-
Current year catastrophe losses		128.5		13.9		47.2		-		189.6		10.9		4.6		23.5		-		39.0
								-						-				-
Prior year unfavorable (favorable) catastrophe development		(5.0)		(4.0)		9.0		-		-		-		-		-		-		-
								-				-		-
Total losses and LAE		423.8		168.7		457.1		1.2		1,050.8		275.6		146.1		342.1		-		763.8
								-				-		-
Amortization of deferred acquisition costs and other underwriting expenses		166.7		111.2		148.9		-		426.8		158.4		98.2		137.6		-		394.2
								-				-		-
GAAP underwriting profit (loss)		(87.5)		28.5		(53.9)		(1.2)		(114.1)		34.4		33.2		17.0		-		84.6
								-				-		-
Net investment income		34.8		15.9		22.2		3.0		75.9		37.6		16.1		22.9		2.9		79.5
								-				-		-
Other income		1.1		1.2		4.0		0.8		7.1		0.8		1.5		2.6		1.1		6.0
								-				-		-
Other operating expenses		(1.1)		(1.7)		(1.4)		(2.9)		(7.1)		(0.9)		(1.8)		(1.6)		(2.9)		(7.2)
								-						-
Operating income (loss) before income taxes	$	(52.7)	$	43.9	$	(29.1)	$	(0.3)	$	(38.2)	$	71.9	$	49.0	$	40.9	$	1.1	$	162.9

Loss and LAE ratio:

Current year, excluding catastrophe losses		60.2 %		51.5 %		72.6 %		N/M		63.3 %		58.0 %		52.4 %		64.8 %		N/M		59.6 %
														-
Prior year favorable development, excluding catastrophe losses		(0.5)%		-		-		N/M		(0.1)%		(1.5)%		(1.5)%		(0.6)%		N/M		(1.2)%
														-
Current year catastrophe losses		25.6 %		4.5 %		8.6 %		N/M		13.9 %		2.3 %		1.7 %		4.7 %		N/M		3.1 %
														-
Prior year unfavorable (favorable) catastrophe development		(1.0)%		(1.3)%		1.6 %		N/M		-		-		-		-		N/M		-

Total loss and LAE ratio		84.3 %		54.7 %		82.8 %		N/M		77.1 %		58.8 %		52.6 %		68.9 %		N/M		61.5 %
														-
Expense ratio		32.9 %		35.8 %		26.3 %		N/M		30.9 %		33.6 %		35.1 %		27.3 %		N/M		31.4 %
														-
Combined ratio		117.2 %		90.5 %		109.1 %		N/M		108.0 %		92.4 %		87.7 %		96.2 %		N/M		92.9 %


THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

CONSOLIDATED

Year ended December 31

		2022										2021

		Core				Personal						Core				Personal
(In millions, except percentage data)		Commercial		Specialty		Lines		Other		Total		Commercial		Specialty		Lines		Other		Total
Gross premiums written	$	2,276.3	$	1,500.1	$	2,304.4	$	-	$	6,080.8	$	2,099.5	$	1,349.4	$	1,895.4	$	-	$	5,344.3

Net premiums written	$	1,999.9	$	1,243.7	$	2,232.9	$	-	$	5,476.5	$	1,864.8	$	1,118.9	$	2,009.7	$	-	$	4,993.4

Net premiums earned	$	1,950.5	$	1,189.0	$	2,112.8	$	-	$	5,252.3	$	1,810.9	$	1,029.9	$	1,929.4	$	-	$	4,770.2
				-				-						-		-		-
Losses and LAE:
				-				-						-		-		-
Current year, excluding catastrophe losses		1,153.1		628.6		1,459.7		-		3,241.4		1,062.4		555.5		1,169.8		-		2,787.7
				-				-										-
Prior year unfavorable (favorable) development, excluding catastrophe losses		(10.3)		(19.5)		8.0		1.2		(20.6)		(17.8)		(16.2)		(23.1)		1.0		(56.1)
				-				-										-
Current accident year catastrophe losses		211.0		41.4		162.2		-		414.6		185.2		54.1		178.3		-		417.6
				-				-										-
Prior year unfavorable (favorable) catastrophe development		(17.3)		(8.7)		14.0		-		(12.0)		(9.7)		(2.3)		(3.0)		-		(15.0)
				-				-						-		-		-
Total losses and LAE		1,336.5		641.8		1,643.9		1.2		3,623.4		1,220.1		591.1		1,322.0		1.0		3,134.2
				-				-										-
Amortization of deferred acquisition costs and other underwriting expenses		642.7		422.5		573.1		-		1,638.3		598.3		369.4		542.3		-		1,510.0
				-				-						-		-		-
GAAP underwriting profit (loss)		(28.7)		124.7		(104.2)		(1.2)		(9.4)		(7.5)		69.4		65.1		(1.0)		126.0
				-				-						-		-		-
Net investment income		136.2		62.1		86.8		11.2		296.3		146.5		62.9		89.4		11.9		310.7
				-				-						-		-		-
Other income		4.0		5.4		14.1		3.0		26.5		3.3		6.4		9.7		4.5		23.9
								-										-
Other operating expenses		(4.6)		(6.2)		(5.5)		(12.0)		(28.3)		(4.3)		(6.8)		(5.7)		(11.5)		(28.3)
				-				-						-		-		-
Operating income (loss) before income taxes	$	106.9	$	186.0	$	(8.8)	$	1.0	$	285.1	$	138.0	$	131.9	$	158.5	$	3.9	$	432.3

Loss and LAE ratio:

Current year, excluding catastrophe losses		59.1 %		52.8 %		69.1 %		N/M		61.7 %		58.7 %		54.0 %		60.6 %		N/M		58.5 %

Prior year unfavorable (favorable) development, excluding catastrophe losses		(0.5)%		(1.6)%		0.4 %		N/M		(0.4)%		(1.0)%		(1.6)%		(1.2)%		N/M		(1.2)%

Current year catastrophe losses		10.8 %		3.5 %		7.6 %		N/M		7.9 %		10.2 %		5.2 %		9.3 %		N/M		8.7 %

Prior year unfavorable (favorable) catastrophe development		(0.9)%		(0.7)%		0.7 %		N/M		(0.2)%		(0.5)%		(0.2)%		(0.2)%		N/M		(0.3)%

Total loss and LAE ratio		68.5 %		54.0 %		77.8 %		N/M		69.0 %		67.4 %		57.4 %		68.5 %		N/M		65.7 %

Expense ratio		32.7 %		35.3 %		26.5 %		N/M		30.8 %		32.9 %		35.5 %		27.7 %		N/M		31.3 %

Combined ratio		101.2 %		89.3 %		104.3 %		N/M		99.8 %		100.3 %		92.9 %		96.2 %		N/M		97.0 %


THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING INFORMATION AND RELATED RATIOS
CONSOLIDATED


		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Dec-YTD		Dec-YTD
(In millions, except percentage data)		2021		2021		2021		2021		2022		2022		2022		2022		2021		2022

Gross premiums written	$	1,337.6	$	1,342.8	$	1,493.2	$	1,170.7	$	1,470.1	$	1,473.9	$	1,660.3	$	1,476.5	$	5,344.3	$	6,080.8
																		-		-
Net premiums written	$	1,196.1	$	1,207.2	$	1,375.2	$	1,214.9	$	1,312.3	$	1,332.8	$	1,505.4	$	1,326.0	$	4,993.4	$	5,476.5
																		-		-
Net premiums earned	$	1,161.8	$	1,179.8	$	1,186.0	$	1,242.6	$	1,263.8	$	1,293.8	$	1,331.2	$	1,363.5	$	4,770.2	$	5,252.3
										.								-		-
Losses and LAE:
																				-
Current year, excluding catastrophe losses		656.2		680.9		711.4		739.2		748.0		777.3		853.5		862.6		2,787.7		3,241.4
																		-		-
Prior year favorable development, excluding catastrophe losses		(8.2)		(12.6)		(20.9)		(14.4)		(6.0)		(9.2)		(4.0)		(1.4)		(56.1)		(20.6)
																		-		-
Current year catastrophe losses		133.3		91.8		153.5		39.0		45.5		89.4		90.1		189.6		417.6		414.6
																				-
Prior year favorable catastrophe development		-		(15.0)		-		-		-		(12.0)		-		-		(15.0)		(12.0)
																		-		-
Total losses and LAE		781.3		745.1		844.0		763.8		787.5		845.5		939.6		1,050.8		3,134.2		3,623.4
																				-
Amortization of deferred acquisition costs and other underwriting expenses		371.2		371.7		372.9		394.2		397.9		403.6		410.0		426.8		1,510.0		1,638.3
																				-
GAAP underwriting profit (loss)		9.3		63.0		(30.9)		84.6		78.4		44.7		(18.4)		(114.1)		126.0		(9.4)

Net investment income		76.8		75.6		78.8		79.5		76.9		70.5		73.0		75.9		310.7		296.3
		-		-		-		-		-								-
Other income		6.0		5.8		6.1		6.0		5.9		6.5		7.0		7.1		23.9		26.5
		-		-		-		-		-								-
Other operating expenses		(7.0)		(7.1)		(7.0)		(7.2)		(6.8)		(6.7)		(7.7)		(7.1)		(28.3)		(28.3)
				-		-		-		-
Operating income (loss) before income taxes	$	85.1	$	137.3	$	47.0	$	162.9	$	154.4	$	115.0	$	53.9	$	(38.2)	$	432.3	$	285.1

Loss and LAE ratio:
																		-		-
Current year, excluding catastrophe losses		56.4 %		57.8 %		60.1 %		59.6 %		59.2 %		60.1 %		64.1 %		63.3 %		58.5 %		61.7 %
																		-		-
Prior year favorable development, excluding catastrophe losses		(0.7)%		(1.1)%		(1.8)%		(1.2)%		(0.5)%		(0.7)%		(0.3)%		(0.1)%		(1.2)%		(0.4)%
																		-		-
Current year catastrophe losses		11.5 %		7.8 %		12.9 %		3.1 %		3.6 %		6.9 %		6.8 %		13.9 %		8.7 %		7.9 %
																				-
Prior year favorable catastrophe development		-		(1.3)%		-		-		-		(0.9)%		-		-		(0.3)%		(0.2)%
																				-
Total loss and LAE ratio		67.2 %		63.2 %		71.2 %		61.5 %		62.3 %		65.4 %		70.6 %		77.1 %		65.7 %		69.0 %
																				-
Expense ratio		31.6 %		31.2 %		31.1 %		31.4 %		31.1 %		30.8 %		30.4 %		30.9 %		31.3 %		30.8 %
																				-
Combined ratio		98.8 %		94.4 %		102.3 %		92.9 %		93.4 %		96.2 %		101.0 %		108.0 %		97.0 %		99.8 %
																				-
Combined ratio, excluding catastrophe losses		87.3 %		87.9 %		89.4 %		89.8 %		89.8 %		90.2 %		94.2 %		94.1 %		88.6 %		92.1 %
																				-
Current accident year combined ratio, excluding catastrophe losses		88.0 %		89.0 %		91.2 %		91.0 %		90.3 %		90.9 %		94.5 %		94.2 %		89.8 %		92.5 %


THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
CORE COMMERCIAL


		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Dec-YTD		Dec-YTD
(In millions, except percentage data)		2021		2021		2021		2021		2022		2022		2022		2022		2021		2022

Gross premiums written	$	539.9	$	473.6	$	601.1	$	484.9	$	591.9	$	525.6	$	638.7	$	520.1	$	2,099.5	$	2,276.3
																		-
Net premiums written	$	480.6	$	421.7	$	534.6	$	427.9	$	526.6	$	454.2	$	565.9	$	453.2	$	1,864.8	$	1,999.9
																		-
Net premiums earned	$	435.2	$	447.6	$	459.7	$	468.4	$	474.7	$	480.1	$	492.7	$	503.0	$	1,810.9	$	1,950.5

Losses and LAE:

Current year, excluding catastrophe losses		250.6		258.2		281.7		271.9		272.6		273.6		304.2		302.7		1,062.4		1,153.1
																		-
Prior year unfavorable (favorable) development, excluding catastrophe losses		(2.7)		(4.6)		(3.3)		(7.2)		(6.4)		(2.8)		1.3		(2.4)		(17.8)		(10.3)
																		-
Current year catastrophe losses		94.5		22.5		57.3		10.9		19.7		28.7		34.1		128.5		185.2		211.0

Prior year favorable catastrophe development		(0.1)		(8.7)		(0.9)		-		-		(10.9)		(1.4)		(5.0)		(9.7)		(17.3)

Total losses and LAE		342.3		267.4		334.8		275.6		285.9		288.6		338.2		423.8		1,220.1		1,336.5

Amortization of deferred acquisition costs and other underwriting expenses		144.2		145.1		150.6		158.4		156.6		157.2		162.2		166.7		598.3		642.7

GAAP underwriting profit (loss)		(51.3)		35.1		(25.7)		34.4		32.2		34.3		(7.7)		(87.5)		(7.5)		(28.7)
		0		0		0		0		0
Net investment income		36.9		35.0		37.0		37.6		35.4		32.6		33.4		34.8		146.5		136.2
		0		0		0		0		0								-
Other income		0.8		0.8		0.9		0.8		1.0		0.9		1.0		1.1		3.3		4.0
		0		0		0		0		0								-
Other operating expenses		(1.2)		(1.0)		(1.2)		(0.9)		(1.1)		(0.9)		(1.5)		(1.1)		(4.3)		(4.6)
		0		0		0		0		0
Operating income (loss) before income taxes	$	(14.8)	$	69.9	$	11.0	$	71.9	$	67.5	$	66.9	$	25.2	$	(52.7)	$	138.0	$	106.9
		-		-		-		-		-
Loss and LAE ratio:
		-		-		-		-		-								-
Current year, excluding catastrophe losses		57.6 %		57.6 %		61.2 %		58.0 %		57.4 %		57.0 %		61.7 %		60.2 %		58.7 %		59.1 %

Prior year unfavorable (favorable) development, excluding catastrophe losses		(0.6)%		(1.0)%		(0.7)%		(1.5)%		(1.3)%		(0.6)%		0.3 %		(0.5)%		(1.0)%		(0.5)%

Current year catastrophe losses		21.7 %		5.0 %		12.5 %		2.3 %		4.1 %		6.0 %		6.9 %		25.6 %		10.2 %		10.8 %

Prior year favorable catastrophe development		-		(1.9)%		(0.2)%		-		-		(2.3)%		(0.3)%		(1.0)%		(0.5)%		(0.9)%
Total loss and LAE ratio		78.7 %		59.7 %		72.8 %		58.8 %		60.2 %		60.1 %		68.6 %		84.3 %		67.4 %		68.5 %

Expense ratio		33.0 %		32.2 %		32.6 %		33.6 %		32.8 %		32.5 %		32.7 %		32.9 %		32.9 %		32.7 %

Combined ratio		111.7 %		91.9 %		105.4 %		92.4 %		93.0 %		92.6 %		101.3 %		117.2 %		100.3 %		101.2 %

Combined ratio, excluding catastrophe losses		90.0 %		88.8 %		93.1 %		90.1 %		88.9 %		88.9 %		94.7 %		92.6 %		90.6 %		91.3 %

Current accident year combined ratio, excluding catastrophe losses		90.6 %		89.8 %		93.8 %		91.6 %		90.2 %		89.5 %		94.4 %		93.1 %		91.6 %		91.8 %


THE HANOVER INSURANCE GROUP
PREMIUMS WRITTEN AND RELATED METRICS

CORE COMMERCIAL

		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Dec-YTD		Dec-YTD
(In millions, except percentage data)		2021		2021		2021		2021		2022		2022		2022		2022		2021		2022

Written Premium
Gross	$	539.9	$	473.6	$	601.1	$	484.9	$	591.9	$	525.6	$	638.7	$	520.1	$	2,099.5	$	2,276.3
Ceded		(59.3)		(51.9)		(66.5)		(57.0)		(65.3)		(71.4)		(72.8)		(66.9)		(234.7)		(276.4)
Net	$	480.6	$	421.7	$	534.6	$	427.9	$	526.6	$	454.2	$	565.9	$	453.2	$	1,864.8	$	1,999.9
Growth		4.3%		11.4%		9.9%		6.8%		9.6%		7.7%		5.9%		5.9%		8.0%		7.2%

Net premiums written by segment
Small Commercial	$	257.1	$	246.8	$	256.3	$	243.2	$	283.7	$	272.8	$	273.4	$	260.1	$	1,003.4	$	1,090.0
Middle Market		223.5		174.9		278.3		184.7		242.9		181.4		292.5		193.1		861.4		909.9
Total	$	480.6	$	421.7	$	534.6	$	427.9	$	526.6	$	454.2	$	565.9	$	453.2	$	1,864.8	$	1,999.9
		-		-		-		-		-
Net premiums written by line of business
Commercial Multiple Peril	$	237.2	$	219.0	$	284.2	$	217.3	$	256.0	$	224.0	$	300.2	$	231.3	$	957.7	$	1,011.5
Commercial Automobile		90.0		80.6		92.9		77.3		96.1		82.5		95.7		78.8		340.8		353.1
Workers' Compensation		95.7		76.6		92.7		84.3		113.0		92.6		98.2		91.0		349.3		394.8
Other Core Commercial		57.7		45.5		64.8		49.0		61.5		55.1		71.8		52.1		217.0		240.5
Total	$	480.6	$	421.7	$	534.6	$	427.9	$	526.6	$	454.2	$	565.9	$	453.2	$	1,864.8	$	1,999.9

Related Metrics
Premium Retention		87.3%		84.9%		87.8%		86.7%		86.2%		84.2%		85.6%		85.0%		86.7%		85.3%
Renewal Price Change		6.3%		9.3%		9.4%		9.5%		9.7%		11.0%		11.2%		10.2%		8.6%		10.5%


THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
SPECIALTY


		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Dec-YTD		Dec-YTD
(In millions, except percentage data)		2021		2021		2021		2021		2022		2022		2022		2022		2021		2022

Gross premiums written	$	344.1	$	332.1	$	327.2	$	346.0	$	379.1	$	354.6	$	392.3	$	374.1	$	1,349.4	$	1,500.1
																		-		-
Net premiums written	$	276.8	$	265.1	$	292.2	$	284.8	$	302.8	$	302.3	$	329.1	$	309.5	$	1,118.9	$	1,243.7
																		-		-
Net premiums earned	$	257.7	$	255.8	$	238.9	$	277.5	$	283.8	$	293.5	$	303.3	$	308.4	$	1,029.9	$	1,189.0
																		-		-
Losses and LAE:
																		-		-
Current year, excluding catastrophe losses		138.3		145.7		125.8		145.7		154.0		153.5		162.3		158.8		555.5		628.6
																		-		-
Prior year favorable development, excluding catastrophe losses		(0.6)		(3.3)		(8.1)		(4.2)		(13.2)		(1.2)		(5.1)		-		(16.2)		(19.5)
																		-		-
Current year catastrophe losses		24.3		7.7		17.5		4.6		7.6		9.7		10.2		13.9		54.1		41.4
																		-		-
Prior year unfavorable (favorable) catastrophe development		0.1		(3.3)		0.9		-		-		(3.1)		(1.6)		(4.0)		(2.3)		(8.7)
																		-		-
Total losses and LAE		162.1		146.8		136.1		146.1		148.4		158.9		165.8		168.7		591.1		641.8
																		-		-
Amortization of deferred acquisition costs and other underwriting expenses		93.6		90.3		87.3		98.2		101.5		104.3		105.5		111.2		369.4		422.5
																		-		-
GAAP underwriting profit		2.0		18.7		15.5		33.2		33.9		30.3		32.0		28.5		69.4		124.7
																		-		-
Net investment income		14.9		16.0		15.9		16.1		16.2		14.8		15.2		15.9		62.9		62.1
																		-		-
Other income		1.6		1.7		1.6		1.5		1.3		1.5		1.4		1.2		6.4		5.4
																		-		-
Other operating expenses		(1.5)		(1.9)		(1.6)		(1.8)		(1.4)		(1.4)		(1.7)		(1.7)		(6.8)		(6.2)
																		-		-
Operating income before income taxes	$	17.0	$	34.5	$	31.4	$	49.0	$	50.0	$	45.2	$	46.9	$	43.9	$	131.9	$	186.0
																		-
Loss and LAE ratio:
																		-		-
Current year, excluding catastrophe losses		53.6 %		57.0 %		52.7 %		52.4%		54.3 %		52.3 %		53.6 %		51.5 %		54.0%		52.8 %
																		-		-
Prior year favorable development, excluding catastrophe losses		(0.2)%		(1.3)%		(3.4)%		(1.5)%		(4.7)%		(0.4)%		(1.7)%		-		(1.6)%		(1.6)%
																		-		-
Current year catastrophe losses		9.5 %		3.0 %		7.3 %		1.7%		2.7 %		3.3 %		3.3 %		4.5 %		5.2%		3.5 %
																		-		-
Prior year unfavorable (favorable) catastrophe development		-		(1.3)%		0.4 %		-		-		(1.1)%		(0.5)%		(1.3)%		(0.2)%		(0.7)%
																		-		-
Total loss and LAE ratio		62.9 %		57.4 %		57.0 %		52.6 %		52.3 %		54.1 %		54.7 %		54.7 %		57.4 %		54.0 %
		0		0		0		0		0								-		-
Expense ratio		35.9 %		34.9 %		36.2 %		35.1 %		35.4 %		35.3 %		34.5 %		35.8 %		35.5 %		35.3 %
		0		0		0		0		0								-		-
Combined ratio		98.8 %		92.3 %		93.2 %		87.7 %		87.7 %		89.4 %		89.2 %		90.5 %		92.9 %		89.3 %
																				-
Combined ratio, excluding catastrophe losses		89.3 %		90.6 %		85.5 %		86.0 %		85.0 %		87.2 %		86.4 %		87.3%		87.9 %		86.5 %

Current accident year combined ratio, excluding catastrophe losses		89.5 %		91.9 %		88.9 %		87.5 %		89.7 %		87.6 %		88.1 %		87.3%		89.5 %		88.1 %


THE HANOVER INSURANCE GROUP

PREMIUMS WRITTEN AND RELATED METRICS
SPECIALTY

		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Dec-YTD		Dec-YTD
(In millions, except percentage data)		2021		2021		2021		2021		2022		2022		2022		2022		2021		2022

Written Premiums
Gross	$	344.1	$	332.1	$	327.2	$	346.0	$	379.1	$	354.6	$	392.3	$	374.1	$	1,349.4	$	1,500.1
Ceded		(67.3)		(67.0)		(35.0)		(61.2)		(76.3)		(52.3)		(63.2)		(64.6)		(230.5)		(256.4)
Net	$	276.8	$	265.1	$	292.2	$	284.8	$	302.8	$	302.3	$	329.1	$	309.5	$	1,118.9	$	1,243.7
Growth		12.1%		12.2%		6.6%		14.1%		9.4%		14.0%		12.6%		8.7%		11.1%		11.2%
																		-		-
Net premiums written by segment																		-		-
Professional and Executive Lines	$	94.4	$	81.3	$	98.0	$	93.3	$	111.0	$	94.6	$	105.8	$	99.1	$	367.0	$	410.5
Specialty Property & Casualty		79.3		79.8		87.1		101.4		90.4		98.5		102.4		110.8		347.6		402.1
Marine		91.1		86.6		90.4		77.1		84.3		91.2		100.3		84.4		345.2		360.2
Surety and Other		12.0		17.4		16.7		13.0		17.1		18.0		20.6		15.2		59.1		70.9
Total	$	276.8	$	265.1	$	292.2	$	284.8	$	302.8	$	302.3	$	329.1	$	309.5	$	1,118.9	$	1,243.7
																		-		-
Related Metrics
Premium Retention		82.3%		83.1%		85.5%		84.8%		84.2%		83.5%		82.6%		83.1%		83.9%		83.3%
Renewal Price Change		8.7%		11.3%		10.8%		12.7%		12.6%		12.0%		12.4%		13.2%		10.9%		12.6%


THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

PERSONAL LINES

Three Months ended December 31

	2022						2021
(In millions, except percentage data)		Auto		Home and Other		Total		Auto		Home and Other		Total

Net premiums written	$	324.6	$	238.7	$	563.3	$	300.3	$	201.9	$	502.2

Net premiums earned	$	326.5	$	225.6	$	552.1	$	305.3	$	191.4	$	496.7
						-
Losses and LAE:
						-
Current year, excluding catastrophe losses		279.5		121.6		401.1		226.3		95.3		321.6
						-						-
Prior year unfavorable (favorable) development, excluding catastrophe losses		(0.7)		0.5		(0.2)		(4.4)		1.4		(3.0)
						-						-
Current year catastrophe losses		(0.7)		47.9		47.2		2.5		21.0		23.5
						-						-
Prior year unfavorable (favorable) catastrophe development		(0.4)		9.4		9.0		(0.3)		0.3		-
						-
Total losses and LAE		277.7		179.4		457.1		224.1		118.0		342.1
						-
Amortization of deferred acquisition costs and other underwriting expenses						148.9						137.6
						-
GAAP underwriting profit (loss)						(53.9)						17.0
						-
Net investment income						22.2						22.9
						-
Other income						4.0						2.6
						-
Other operating expenses						(1.4)						(1.6)
						-
Operating income (loss) before income taxes					$	(29.1)					$	40.9

Loss and LAE ratio:

Current year, excluding catastrophe losses		85.6 %		53.9 %		72.6 %		74.1%		49.8 %		64.8 %

Prior year unfavorable (favorable) development, excluding catastrophe losses		(0.2)%		0.2 %		-		(1.4)%		0.7 %		(0.6)%

Current year catastrophe losses		(0.2)%		21.2 %		8.6 %		0.8 %		11.0 %		4.7 %

Prior year unfavorable (favorable) catastrophe development		(0.1)%		4.2 %		1.6 %		(0.1)%		0.2 %		-
Total loss and LAE ratio		85.1 %		79.5 %		82.8 %		73.4 %		61.7 %		68.9 %

Expense ratio						26.3 %						27.3 %

Combined ratio						109.1 %						96.2 %


THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
PERSONAL LINES

Year ended December 31

	2022						2021
(In millions, except percentage data)		Auto		Home & Other		Total		Auto		Home & Other		Total

Net premiums written	$	1,317.2	$	915.7	$	2,232.9	$	1,230.4	$	779.3	$	2,009.7

Net premiums earned	$	1,270.3	$	842.5	$	2,112.8	$	1,193.8	$	735.6	$	1,929.4
												-
Losses and LAE:
												-
Current year, excluding catastrophe losses		975.6		484.1		1,459.7		792.5		377.3		1,169.8
												-
Prior year unfavorable (favorable) development, excluding catastrophe losses		(3.5)		11.5		8.0		(23.5)		0.4		(23.1)
												-
Current year catastrophe losses		12.1		150.1		162.2		20.0		158.3		178.3
												-
Prior year unfavorable (favorable) catastrophe development		(2.7)		16.7		14.0		(1.3)		(1.7)		(3.0)

Total losses and LAE		981.5		662.4		1,643.9		787.7		534.3		1,322.0

Amortization of deferred acquisition costs and other underwriting expenses						573.1						542.3

GAAP underwriting profit (loss)						(104.2)						65.1

Net investment income						86.8						89.4

Other income						14.1						9.7

Other operating expenses						(5.5)						(5.7)

Operating income (loss) before income taxes					$	(8.8)					$	158.5

Loss and LAE ratio:

Current year, excluding catastrophe losses		76.9 %		57.4 %		69.1 %		66.4 %		51.2 %		60.6 %

Prior year unfavorable (favorable) development, excluding catastrophe losses		(0.3)%		1.4 %		0.4 %		(2.0)%		0.1 %		(1.2)%

Current year catastrophe losses		0.9 %		17.8 %		7.6 %		1.7 %		21.5 %		9.3 %

Prior year unfavorable (favorable) catastrophe development		(0.2)%		2.0 %		0.7 %		(0.1)%		(0.2)%		(0.2)%
Total loss and LAE ratio		77.3 %		78.6 %		77.8 %		66.0 %		72.6 %		68.5 %

Expense ratio						26.5 %						27.7 %

Combined ratio						104.3 %						96.2 %


THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING INFORMATION AND RELATED RATIOS
PERSONAL LINES



		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Dec-YTD		Dec-YTD
(In millions, except percentage data)		2021		2021		2021		2021		2022		2022		2022		2022		2021		2022

Gross premiums written	$	453.6	$	537.1	$	564.9	$	339.8	$	499.1	$	593.7	$	629.3	$	582.3	$	1,895.4	$	2,304.4
																				-
Net premiums written	$	438.7	$	520.4	$	548.4	$	502.2	$	482.9	$	576.3	$	610.4	$	563.3	$	2,009.7	$	2,232.9
																		-		-
Net premiums earned	$	468.9	$	476.4	$	487.4	$	496.7	$	505.3	$	520.2	$	535.2	$	552.1	$	1,929.4	$	2,112.8
																		-		-
Losses and LAE:
																		-		-
Current year, excluding catastrophe losses		267.3		277.0		303.9		321.6		321.4		350.2		387.0		401.1		1,169.8		1,459.7
																		-		-
Prior year unfavorable (favorable) development, excluding catastrophe losses		(5.2)		(5.0)		(9.9)		(3.0)		13.6		(5.2)		(0.2)		(0.2)		(23.1)		8.0
																		-		-
Current year catastrophe losses		14.5		61.6		78.7		23.5		18.2		51.0		45.8		47.2		178.3		162.2
																		-		-
Prior year unfavorable (favorable) catastrophe development		-		(3.0)		-		-		-		2.0		3.0		9.0		(3.0)		14.0
		-		-		-		-		-								-		-
Total losses and LAE		276.6		330.6		372.7		342.1		353.2		398.0		435.6		457.1		1,322.0		1,643.9
		-		-		-		-		-								-		-
Amortization of deferred acquisition costs and other underwriting expenses		133.4		136.3		135.0		137.6		139.8		142.1		142.3		148.9		542.3		573.1
		-		-		-		-		-								-		-
GAAP underwriting profit (loss)		58.9		9.5		(20.3)		17.0		12.3		(19.9)		(42.7)		(53.9)		65.1		(104.2)
		-		-		-		-		-								-		-
Net investment income		22.1		21.8		22.6		22.9		22.6		20.6		21.4		22.2		89.4		86.8
																		-		-
Other income		2.3		2.2		2.6		2.6		2.8		3.4		3.9		4.0		9.7		14.1
																		-		-
Other operating expenses		(1.5)		(1.3)		(1.3)		(1.6)		(1.4)		(1.3)		(1.4)		(1.4)		(5.7)		(5.5)
																		5.7		-
Operating income (loss) before income taxes	$	81.8	$	32.2	$	3.6	$	40.9	$	36.3	$	2.8	$	(18.8)	$	(29.1)	$	158.5	$	(8.8)

Loss and LAE ratio:
																		-		-
Current year, excluding catastrophe losses		57.0 %		58.1 %		62.4 %		64.8 %		63.6 %		67.3 %		72.3 %		72.6 %		60.6 %		69.1 %
		-		-		-		-		-								-		-
Prior year unfavorable (favorable) development, excluding catastrophe losses		(1.1)%		(1.0)%		(2.0)%		(0.6)%		2.7 %		(1.0)%		-		-		(1.2)%		0.4 %
		-		-		-		-		-								-		-
Current year catastrophe losses		3.1 %		12.9 %		16.1 %		4.7 %		3.6 %		9.8 %		8.5 %		8.6 %		9.3 %		7.6 %
		-		-		-		-		-								-		-
Prior year unfavorable (favorable) catastrophe development		-		(0.6)%		-		-		-		0.4 %		0.6 %		1.6 %		(0.2)%		0.7 %
		-		-		-		-		-								-		-
Total loss and LAE ratio		59.0 %		69.4 %		76.5 %		68.9 %		69.9 %		76.5 %		81.4 %		82.8 %		68.5 %		77.8 %
		-		-		-		-		-								-		-
Expense ratio		28.0 %		28.2 %		27.3 %		27.3 %		27.2 %		26.7 %		25.9 %		26.3 %		27.7 %		26.5 %
		0		0		0		0		0								-		-
Combined ratio		87.0 %		97.6 %		103.8 %		96.2 %		97.1 %		103.2 %		107.3 %		109.1 %		96.2 %		104.3 %
		0		0		0		0		0.1								-		-
Combined ratio, excluding catastrophe losses		83.9 %		85.3 %		87.7 %		91.5 %		93.5 %		93.0 %		98.2 %		98.9 %		87.1 %		96.0 %

Current accident year combined ratio, excluding catastrophe losses		85.0 %		86.3 %		89.7 %		92.1 %		90.8 %		94.0 %		98.2 %		98.9 %		88.3 %		95.6 %


THE HANOVER INSURANCE GROUP

PREMIUMS WRITTEN AND RELATED METRICS
PERSONAL LINES

		Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Dec-YTD		Dec-YTD
(In millions, except percentage data)		2021		2021		2021		2021		2022		2022		2022		2022		2021		2022
Written Premiums
Gross	$	453.6	$	537.1	$	564.9	$	339.8	$	499.1	$	593.7	$	629.3	$	582.3	$	1,895.4	$	2,304.4
Ceded		(14.9)		(16.7)		(16.5)		162.4		(16.2)		(17.4)		(18.9)		(19.0)		114.3		(71.5)
Net	$	438.7	$	520.4	$	548.4	$	502.2	$	482.9	$	576.3	$	610.4	$	563.3	$	2,009.7	$	2,232.9
Growth		2.2%		11.6%		8.0%		8.7%		10.1%		10.7%		11.3%		12.2%		7.7%		11.1%

Net premiums written by line of business
Personal Automobile	$	280.7	$	318.6	$	330.8	$	300.3	$	298.4	$	340.2	$	354.0	$	324.6	$	1,230.4	$	1,317.2
Homeowners and Other		158.0		201.8		217.6		201.9		184.5		236.1		256.4		238.7		779.3		915.7
Total	$	438.7	$	520.4	$	548.4	$	502.2	$	482.9	$	576.3	$	610.4	$	563.3	$	2,009.7	$	2,232.9

Related Metrics

Renewal Price Change
Personal Automobile		4.2%		3.5%		1.5%		1.2%		2.4%		2.9%		4.1%		6.7%		2.6%		4.1%
Homeowners		6.2%		5.7%		5.9%		6.9%		7.7%		9.3%		12.1%		15.5%		6.2%		11.3%
Total (1)		4.9%		4.4%		3.2%		3.4%		4.3%		5.4%		7.3%		10.1%		4.0%		6.9%

Policy Retention
Personal Automobile		84.0%		85.8%		88.0%		88.4%		88.5%		88.4%		87.3%		85.7%		86.5%		87.5%
Homeowners		84.2%		86.9%		89.3%		89.6%		89.2%		89.7%		88.1%		87.0%		87.6%		88.5%
Total (1)		84.1%		86.4%		88.6%		89.0%		88.8%		89.1%		87.7%		86.4%		87.1%		88.0%

PIF change from prior year period
Personal Automobile		(2.7)%		(0.9)%		2.7 %		6.1 %		8.0%		8.0%		7.1%		5.8%		6.1%		5.8%
Homeowners		(0.9)%		0.6 %		3.4 %		6.0 %		7.5%		7.6%		6.8%		5.6%		6.0%		5.6%
Total (1)		(1.8)%		(0.1)%		3.1 %		6.1 %		7.8%		7.8%		7.0%		5.7%		6.1%		5.7%

(1) Related metrics exclude Other Personal Lines.


THE HANOVER INSURANCE GROUP

NET INVESTMENT INCOME AND YIELDS


		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	YTD	YTD
(In millions, except yields)		2021	2021	2021	2021	2022	2022	2022	2022	2021	2022

Net Investment Income

	Fixed maturities	$54.5	$53.9	$54.2	$54.3	$55.8	$57.6	$60.3	$65.6	$216.9	$239.3
	Limited partnerships	15.1	15.5	18.9	18.7	15.2	7.8	7.5	5.2	68.2	35.7
	Mortgage loans	5.4	4.2	4.0	4.4	4.4	4.0	4.0	3.7	18.0	16.1
	Equity securities	3.8	3.8	3.7	4.3	3.6	3.1	3.1	2.2	15.6	12.0
	Other investments	0.7	0.9	0.7	0.7	0.8	0.8	1.0	2.0	3.0	4.6
	Investment expenses	(2.7)	(2.7)	(2.7)	(2.9)	(2.9)	(2.8)	(2.9)	(2.8)	(11.0)	(11.4)
Total		$76.8	$75.6	$78.8	$79.5	$76.9	$70.5	$73.0	$75.9	$310.7	$296.3


Pre-tax Yields
	Fixed maturities	3.11%	3.02%	2.96%	2.90%	2.95%	2.97%	3.02%	3.20%	2.99%	3.04%
	Total	3.74%	3.65%	3.72%	3.69%	3.52%	3.19%	3.21%	3.26%	3.70%	3.29%


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

INVESTMENT PORTFOLIO
December 31, 2022
(In millions)
						Change in	Change in
	Weighted	Amortized			Net	Net	Net
	Average	Cost	Fair Value /	% of	Unrealized	Unrealized	Unrealized
Investment Type	Quality	or Cost (1)	Carry Value	Total	Loss	During Q4	YTD

Fixed maturities:
U.S. Treasury and government agencies	AAA	$478.9	$420.2	4.8%	$(58.7)	$2.7	$(60.6)
Foreign government	BBB+	2.3	2.2	-	(0.1)	-	(0.5)
Municipals:
Taxable	AA	1,218.4	1,055.7	12.0%	(162.7)	(1.5)	(186.5)
Tax-exempt	AA	21.1	20.4	0.2%	(0.7)	0.6	(1.5)
Corporate:
NAIC 1	A	1,622.3	1,515.2	17.2%	(107.1)	16.5	(176.2)
NAIC 2	BBB	2,086.1	1,874.7	21.3%	(211.4)	35.2	(290.3)
NAIC 3 and below	B+	355.9	340.0	3.8%	(15.9)	17.5	(26.8)
Total corporate	BBB+	4,064.3	3,729.9	42.3%	(334.4)	69.2	(493.3)
Asset-backed:
Residential mortgage-backed	AAA	1,215.3	1,073.8	12.2%	(141.5)	6.5	(142.9)
Commercial mortgage-backed	AAA	924.1	836.4	9.5%	(87.7)	3.3	(109.7)
Asset-backed	AA	370.1	343.2	3.9%	(26.9)	(0.5)	(26.8)
Total fixed maturities	A+	8,294.5	7,481.8	84.9%	(812.7)	80.3	(1,021.8)
Limited partnerships and other investments		397.5	397.5	4.5%	-	-	-
Mortgage and other loans		388.6	388.6	4.4%	-	-	-
Equity securities		241.9	241.9	2.7%	-	-	-
Total investments		9,322.5	8,509.8	96.5%	(812.7)	80.3	(1,021.8)
Cash and cash equivalents		305.0	305.0	3.5%	-	-	-
Total		$9,627.5	$8,814.8	100.0%	$(812.7)	$80.3	$(1,021.8)

(1) Net of allowance for credit losses of $5.3 million.


THE HANOVER INSURANCE GROUP

CREDIT QUALITY AND DURATION OF FIXED MATURITIES
December 31, 2022

(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	$		5,761.4	$		5,192.4		69.4	%
2		Baa			2,177.1			1,949.4		26.1	%
3		Ba			160.3			153.4		2.0	%
4		B			178.9			171.3		2.3	%
5		Caa and lower			15.0			14.2		0.2	%
6		In or near default			1.8	$		1.1		-
Total fixed maturities			$		8,294.5	$		7,481.8		100.0	%


DURATION OF FIXED MATURITIES

				Amortized			Fair		% of Total
				Cost (1)			Value		Fair Value
	0-2 Years		$		1,614.2	$		1,580.3		21.1	%
	2-4 Years				2,170.6			2,056.8		27.5	%
	4-6 Years				2,044.2			1,850.6		24.8	%
	6-8 Years				2,004.3			1,638.7		21.9	%
	8-10 Years				339.5			263.6		3.5	%
	10+ Years				121.7			91.8		1.2	%
Total fixed maturities			$		8,294.5	$		7,481.8		100.0	%
Weighted Average Duration					4.3

(1) Net of allowance for credit losses of $2.1 million.



TOP 25 CORPORATE AND MUNICIPAL FIXED MATURITY HOLDINGS
December 31, 2022

(In millions, except percentage data)
Issuer	Amortized Cost	Fair Value	As a Percent of Invested Assets	Ratings (1)
Minnesota Housing Finance Agency	$46.7	$41.8	0.47%	AAA
Morgan Stanley	35.9	32.7	0.37%	A-
State of Ohio	34.2	26.0	0.29%	AA+
Bank of New York Mellon	32.4	31.1	0.35%	A
Goldman Sachs	32.0	29.3	0.33%	BBB+
Citizens Financial Group	30.9	28.0	0.32%	BBB+
Massachusetts School Building Authority	30.8	24.6	0.28%	AA+
Capital One Financial	29.9	27.2	0.31%	BBB
Mitsubishi Financial Group	29.1	27.1	0.31%	A-
US Bancorp	28.9	27.7	0.31%	A
Bank of America	28.2	27.1	0.31%	A-
JP Morgan Chase	28.0	25.7	0.29%	A-
Truist Financial	27.3	26.3	0.30%	A-
State of Oregon	27.2	22.3	0.25%	AA+
District of Columbia	27.0	21.5	0.24%	AAA
Westpac Banking	27.0	25.2	0.29%	A
Citigroup	26.8	24.7	0.28%	BBB+
Colorado Housing & Finance Authority	25.9	24.8	0.28%	AAA
PNC Bank	25.7	24.3	0.28%	A
California State University	25.0	19.4	0.22%	AA-
SVB Financial Group	24.7	20.8	0.24%	BBB
Charles Schwab	24.6	22.8	0.26%	A
UBS Group	24.1	21.9	0.25%	A-
UnitedHealth Group	23.9	21.7	0.25%	A+
Cigna	23.6	21.3	0.24%	A-
Top 25 Corporate and Municipal	$719.8	$645.3	7.32%

(1) - Represents nationally recognized rating agency sources.


THE HANOVER INSURANCE GROUP

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET INCOME (LOSS)

	Three Months ended December 31								Year ended December 31
	2022				2021				2022				2021
(In millions, except per share data)		$	Per Share (1)			$	Per Share (Diluted)			$	Per Share (Diluted)			$	Per Share (Diluted)
OPERATING INCOME (LOSS)
Core Commercial	$	(52.7)			$	71.9			$	106.9			$	138.0
Specialty		43.9				49.0				186.0				131.9
Personal Lines		(29.1)				40.9				(8.8)				158.5
Other		(0.3)				1.1				1.0				3.9
Total		(38.2)				162.9				285.1				432.3

Interest expense		(8.6)				(8.5)				(34.1)				(34.0)

Operating income (loss) before income taxes		(46.8)	$	(1.31)		154.4	$	4.27		251.0	$	6.95		398.3	$	10.93

Income tax benefit (expense) on operating income (loss)		9.4		0.26		(32.3)		(0.89)		(51.1)		(1.42)		(80.0)		(2.20)
								-
Operating income (loss) after income taxes		(37.4)		(1.05)		122.1		3.38		199.9		5.53		318.3		8.73
								-
Non-operating items:
Net realized gains (losses) from sales and other		(10.2)		(0.29)		(2.2)		(0.06)		(26.5)		(0.73)		4.6		0.13
Net change in fair value of equity securities		42.8		1.20		53.2		1.47		(63.3)		(1.75)		119.1		3.27
Recoveries (impairments) on investments:
Credit-related recoveries (impairments)		(0.4)		(0.01)		(0.3)		(0.01)		(1.9)		(0.05)		0.3		0.01
Losses on intent to sell securities		-		-		(0.3)		(0.01)		(14.8)		(0.41)		(1.0)		(0.03)
		(0.4)		(0.01)		(0.6)		(0.02)		(16.7)		(0.46)		(0.7)		(0.02)
Other non-operating items		(0.1)		-		-		-		(0.5)		(0.02)		-		-
Income tax benefit (expense) on non-operating items		(6.6)		(0.18)		(9.7)		(0.26)		23.9		0.66		(21.3)		(0.59)
Income (loss) from continuing operations, net of taxes		(11.9)		(0.33)		162.8		4.51		116.8		3.23		420.0		11.52
								-
Discontinued operations (net of taxes):								-
								-
Income from Chaucer business		-		-		1.2		0.03		-		-		1.2		0.03
Income (loss) from discontinued life businesses		0.3		-		(0.5)		(0.01)		(0.8)		(0.02)		(2.5)		(0.06)

NET INCOME (LOSS)	$	(11.6)	$	(0.33)	$	163.5	$	4.53	$	116.0	$	3.21	$	418.7	$	11.49


(1) Operating loss before and after income taxes, non-operating items, loss from continuing operations, net of taxes and net loss metrics are calculated using basic shares outstanding due to antidilution.

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 (loss) before interest expense and income taxes, total operating income (loss) after income taxes, total operating income (loss) after income taxes per share, total book value per share, total book value per share excluding net unrealized gains and losses related to investments, net of tax, tangible book value per share and measures of operating income (loss) 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 (loss) before interest expense and income taxes is net income (loss), 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 (loss) 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 (loss) before interest expense and income taxes is the sum of the operating income (loss) from: Core Commercial, Specialty, Personal Lines, and Other. After-tax operating income (loss) EPS (sometimes referred to as “after-tax operating income (loss) per share”) is also a non-GAAP measure. It is defined as net income (loss) 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 (loss) 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 (loss) 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 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 income (loss) and loss ratios that exclude the effects of catastrophe losses.  A catastrophe is a severe loss, resulting from natural or manmade events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, severe winter weather, fire, explosions 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 (loss) 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 (loss) before and after interest expense and income taxes and measures of operating income (loss) that exclude the effects of catastrophe losses or reserve development should not be construed as substitutes for net income (loss) determined in accordance with GAAP. A reconciliation of income (loss) from continuing operations to operating income (loss) before interest expense and income taxes and income (loss) from continuing operations per share to operating income (loss) after taxes per share for the three and twelve months ended December 31, 2022 and 2021 is set forth on page 20 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, 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.  Actual written price changes may differ, as not all policies are retained.

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.  Actual written rate changes may differ, as not all policies are retained.  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

INDUSTRY RATINGS AS OF February 1, 2023

TRANSFER AGENT

PRINCIPAL SUBSIDIARIES

THE HANOVER INSURANCE GROUP, INC.

A.M.

Standard

Computershare Investor Services

440 Lincoln Street

Financial Strength Ratings

Best

& Poor's

Moody's

PO Box 43006

Worcester, MA 01653

The Hanover Insurance

Providence, RI 02940-3066

Company

A

A

A2

1-800-317-4454

The Hanover Insurance Company

Citizens Insurance Company

440 Lincoln Street

of America

A

A

-

Worcester, MA 01653

COMMON STOCK

Citizens Insurance Company of America

A.M.

Standard

808 North Highlander Way

Debt Ratings

Best

& Poor's

Moody's

Common stock of The Hanover Insurance Group, Inc. is traded

Howell, MI 48843

The Hanover Insurance Group, Inc.

on the New York Stock Exchange under the symbol "THG".

Senior Debt

bbb+

BBB

Baa2

Subordinated Debentures

bbb-

BB+

Baa3

MARKET AND DIVIDEND INFORMATION

INQUIRIES

The following tables set forth the high and low closing

The above ratings are accurate as of February 1, 2023, and may be revised,

Oksana Lukasheva

sales prices of our common stock and quarterly cash

superseded or withdrawn by the respective rating agency at any time. For

Senior Vice President

dividends for the periods indicated:

the most current information concerning the financial ratings of The Hanover

Corporate Finance

Insurance Group and its subsidiaries, please visit the websites of the

olukasheva@hanover.com

Quarter Ended

2022

respective rating agencies.

Price Range

Dividends

High

Low

Per Share

March 31

$150.95

$131.19

$0.750

June 30

$154.28

$136.34

$0.750

September 30

$148.36

$124.89

$0.750

December 31

$147.47

$131.27

$0.810

Quarter Ended

2021

Price Range

Dividends

High

Low

Per Share

March 31

$133.12

$112.47

$0.700

June 30

$142.80

$129.83

$0.700

September 30

$142.35

$127.33

$0.700

December 31

$136.97

$121.75

$0.750