Exhibit 99.2

STATISTICAL SUPPLEMENT

FOURTH QUARTER 2011

THE HANOVER INSURANCE GROUP

STATISTICAL SUPPLEMENT

TABLE OF CONTENTS

Business Description	1
Financial Highlights	2
Consolidated Financial Statements
Income Statements	3
Balance Sheets	4
GAAP Underwriting Results
Consolidated	5-7
Commercial Lines	8-10
Personal Lines	11-13
Chaucer	14-16
Investments
Net Investment Income and Yields	17
Investment Portfolio	18
Credit Quality and Duration of Fixed Maturities	19
Top 10 Corporate and Municipal Fixed Maturity Holdings	20
Reconciliation of Segment Income to Net Income	21
Other Information
Non-GAAP Financial Measures	22
Corporate Information	23
Market and Dividend Information	23
Financial Strength and Debt Ratings	23

THE HANOVER INSURANCE GROUP

BASIS OF PRESENTATION

Information contained in this document includes the results of Chaucer from the acquisition date of July 1, 2011 onward.

BUSINESS DESCRIPTIONS

COMMERCIAL LINES

Commercial multiple peril coverage insures businesses against third party liability from accidents occurring on their premises or arising out of their operations, such as injuries sustained from products sold. It also insures business property for damage, such as that caused by fire, wind, hail, water damage (except for flooding), theft and vandalism.

Commercial automobile coverage insures businesses 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 property.

Workers’ compensation coverage insures employers against employee medical and indemnity claims resulting from injuries related to work. Workers’ compensation policies are often written in conjunction with other commercial policies.

Other Commercial Lines is comprised of inland marine, which insures businesses against physical losses to property, such as contractor’s equipment, builders’ risk and goods in transit. We also offer underwriting and managing of program business, including to under-served markets where there are specialty coverage or risk management needs. Other Commercial Lines also includes bonds, which provides businesses with contract surety coverage in the event of performance or payment claims, and commercial surety coverage related to fiduciary or regulatory obligations. Also included in Other Commercial Lines coverages are umbrella, general liability, fire, specialty property, and professional and management liability.

PERSONAL LINES

Personal automobile coverage insures 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.

Homeowners coverage insures individuals for losses to their residences and personal property, such as those caused by fire, wind, hail, water damage (except for flooding), theft and vandalism, and against third party liability claims.

Other Personal Lines are comprised of personal inland marine (jewelry, art, etc.), umbrella, fire, personal watercraft, earthquake and other miscellaneous coverages.

CHAUCER

The Chaucer reporting segment represents THG’s international business written through Lloyd’s and includes international property, marine and aviation, energy, UK motor and international casualty and other coverages.

Property coverage, including direct, facultative and treaty property accounts, insures property, including commercial, auto, and industrial businesses, against physical loss or damage and business interruption. The property treaty account comprises mainly catastrophe and per risk excess contract acceptances, with a small amount of proportional treaty and reinsurance assumed business.

Marine and Aviation includes coverages that insure marine hull, excess of loss, liability, cargo and specie, in addition to political risk, war, and satellite business coverages. It also includes aviation coverages that insure airline hull and liability, general aviation and refuellers and products.

Energy coverage, encompassing exploration and production, construction, liabilities downstream and renewables, insures energy businesses against physical damage, business interruption, control of well, seepage and pollution and liabilities. Energy also includes Nuclear, which predominantly provides coverage relating to power generation at nuclear power stations.

UK Motor coverage insures the UK private car and fleet markets. In addition, it writes specialist classes including commercial vehicle, taxi, motorcycle, motor trade and classic/specialist vehicles, as well as other UK small commercial products.

Casualty and Other Lines includes coverages that insure financial institutions crime and professional indemnity, medical malpractice, workers’ compensation and professional, managerial and general liability, as well as syndicate participations.

OTHER PROPERTY AND CASUALTY

Other Property and Casualty segment consists of Opus, which provides investment advisory services to affiliates and also manages assets for unaffiliated institutions such as insurance companies, retirement plans and foundations; earnings on holding company assets; and voluntary pools business which is in run-off.

1

THE HANOVER INSURANCE GROUP

FINANCIAL HIGHLIGHTS (1)

(In millions, except earnings per share)	Q4 2010		Q1 2011		Q2 2011			Q3 2011			Q4 2011		Dec-YTD 2010		Dec-YTD 2011
PREMIUMS
Gross premiums written	$	795.3	$	833.3	$	894.6		$	1,198.3		$	1,133.0	$	3,358.6	$	4,059.2
Net premiums written		717.1		749.9		815.4			1,051.0			977.1		3,048.0		3,593.4
Net premiums earned		748.7		761.7		770.5			1,018.6			1,047.8		2,841.0		3,598.6
EARNINGS
Segment income (loss) before interest and taxes	$	76.2	$	49.8		(46.8	)	$	(7.6	)	$	77.1	$	227.7	$	72.5
Segment income (loss) after taxes		43.7		26.0		(38.1	)		(18.5	)		45.2		122.2		14.6
Income (loss) from continuing operations		57.4		27.9		(32.4	)		(9.7	)		46.1		153.2		31.9
Net income (loss)		58.4		29.3		(31.8	)		(9.7	)		49.3		154.8		37.1
PER SHARE DATA (DILUTED) (1)
Segment income (loss) after taxes	$	0.95	$	0.56		(0.84	)	$	(0.41	)	$	1.00	$	2.64	$	0.32
Income (loss) from continuing operations		1.25		0.61		(0.71	)		(0.21	)		1.02		3.31		0.70
Net income (loss)		1.27		0.64		(0.70	)		(0.21	)		1.09		3.34		0.81
Weighted average shares outstanding (1)		45.9		46.0		45.4			45.3			45.3		46.3		45.8

BALANCE SHEET

(In millions, except per share data)	December 31 2010			March 31 2011			June 30 2011			September 30 2011			December 31 2011
Total assets	$	8,569.9		$	8,514.9		$	8,981.3		$	12,684.5		$	12,624.4
Total loss and loss adjustment expense reserves		3,277.7			3,315.4			3,406.4			5,722.0			5,760.3
Total shareholders’ equity		2,460.5			2,488.7			2,485.0			2,454.9			2,509.8
U.S. Property and Casualty Companies
Statutory surplus	$	1,747.3		$	1,776.6		$	1,658.6		$	1,538.5		$	1,582.8
Premium to surplus ratio		1.75:1			1.73:1			1.86:1			2.02:1			2.00:1
Book value per share	$	54.74		$	55.06		$	54.96		$	54.98		$	56.24
Book value per share, excluding net unrealized investment gains and losses, net of tax	$	51.92		$	52.06		$	51.12		$	51.65		$	52.16
Tangible book value per share (total book value excluding goodwill and intangibles)	$	49.22		$	49.62		$	49.57		$	47.20		$	48.84
Shares outstanding		44.9			45.2			45.2			44.6			44.6
Total debt/equity		24.6	%		22.5	%		34.5	%		36.7	%		36.3	%
Total debt/total capital		19.8	%		18.4	%		25.7	%		26.9	%		26.6	%

(1) Weighted average shares outstanding and per diluted share amounts in the second and third quarters of 2011 exclude common stock equivalents, as the impact of these instruments was anti-dilutive.

2

THE HANOVER INSURANCE GROUP

CONSOLIDATED INCOME STATEMENTS

	Three Months ended December 31							Year ended December 31
(In millions)	2011		2010		% Change			2011			2010		% Change
REVENUES
Premiums earned	$	1,047.8	$	748.7		39.9		$	3,598.6		$	2,841.0		26.7
Net investment income		69.0		63.0		9.5			258.2			247.2		4.4
Total net realized investment gains		3.2		12.9		(75.2	)		28.1			29.7		(5.4	)
Fees and other income		15.9		8.7		82.8			46.7			34.3		36.2
Total revenues		1,135.9		833.3		36.3			3,931.6			3,152.2		24.7
LOSSES AND EXPENSES
Losses and loss adjustment expenses		687.4		471.7		45.7			2,550.8			1,856.3		37.4
Policy acquisition expenses		250.8		178.2		40.7			854.0			669.0		27.7
Interest expense		16.4		11.5		42.6			55.0			44.3		24.2
Other operating expenses		118.1		96.3		22.6			449.5			371.5		21.0
Total losses and expenses		1,072.7		757.7		41.6			3,909.3			2,941.1		32.9
Income from continuing operations before income taxes		63.2		75.6		(16.4	)		22.3			211.1		(89.4	)
Income tax expense (benefit)		17.1		18.2		(6.0	)		(9.6	)		57.9		(116.6	)
Income from continuing operations		46.1		57.4		(19.7	)		31.9			153.2		(79.2	)
Discontinued operations		3.2		1.0		N/M			5.2			1.6		N/M
Net income	$	49.3	$	58.4		(15.6	)	$	37.1		$	154.8		(76.0	)

3

THE HANOVER INSURANCE GROUP

CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)	December 31 2011			December 31 2010			% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $6,008.7 and $4,598.8)	$	6,284.7		$	4,797.9			31.0
Equity securities, at fair value (cost of $239.9 and $120.7)		246.4			128.6			91.6
Other investments		190.2			39.4			382.7
Total investments		6,721.3			4,965.9			35.3
Cash and cash equivalents		820.4			290.4			182.5
Accrued investment income		71.8			53.8			33.5
Premiums and accounts receivable, net		1,168.1			772.0			51.3
Reinsurance recoverable on paid and unpaid losses, benefits and unearned premiums		2,262.2			1,254.2			80.4
Deferred policy acquisition costs		498.4			345.3			44.3
Deferred income taxes		260.0			177.4			46.6
Goodwill		185.5			179.2			3.5
Other assets		515.5			398.1			29.5
Assets of discontinued operations		121.2			133.6			(9.3	)
Total assets	$	12,624.4		$	8,569.9			47.3
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Loss and loss adjustment expense reserves	$	5,760.3		$	3,277.7			75.7
Unearned premiums		2,292.1			1,520.3			50.8
Expenses and taxes payable		642.9			541.7			18.7
Reinsurance premiums payable		378.9			34.4			N/M
Debt		911.1			605.9			50.4
Liabilities of discontinued operations		129.3			129.4			(0.1	)
Total liabilities		10,114.6			6,109.4			65.6
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		1,784.8			1,796.5			(0.7	)
Accumulated other comprehensive income		210.4			136.7			53.9
Retained earnings		1,237.1			1,246.8			(0.8	)
Treasury stock at cost (15.9 and 15.6 million shares)		(723.1	)		(720.1	)		0.4
Total shareholders’ equity		2,509.8			2,460.5			2.0
Total liabilities and shareholders’ equity	$	12,624.4		$	8,569.9			47.3

4

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND SEGMENT INCOME INFORMATION AND RATIOS

CONSOLIDATED

Three Months ended December 31

	2011															2010
(In millions, except percentage data)	Commercial Lines			Personal Lines			Chaucer			Other P&C			Total P&C			Commercial Lines			Personal Lines			Other P&C			Total P&C
Gross premiums written	$	475.3		$	380.0		$	277.7		$	—		$	1,133.0		$	422.0		$	373.3		$	—		$	795.3
Net premiums written	$	415.7		$	354.9		$	206.5		$	—		$	977.1		$	369.1		$	348.0		$	—		$	717.1
Net premiums earned	$	422.3		$	364.0		$	261.5		$	—		$	1,047.8		$	384.7		$	364.0		$	—		$	748.7
Losses and LAE:
Current accident year, excluding catastrophe losses		249.3			254.0			159.2			—			662.5			225.8			252.7			0.1			478.6
Prior year (favorable) unfavorable reserve development		(7.5	)		(4.5	)		(18.9	)		0.2			(30.7	)		(11.3	)		(12.2	)		(0.2	)		(23.7	)
Catastrophe losses		4.0			15.7			35.9			—			55.6			9.1			7.7			—			16.8
Total losses and LAE		245.8			265.2			176.2			0.2			687.4			223.6			248.2			(0.1	)		471.7
Policy acquisition and other underwriting expenses		165.8			102.0			86.1			0.2			354.1			159.2			105.5			—			264.7
GAAP underwriting profit (loss)		10.7			(3.2	)		(0.8	)		(0.4	)		6.3			1.9			10.3			0.1			12.3
Net investment income		34.9			23.6			8.3			2.2			69.0			33.3			26.3			3.4			63.0
Other income		5.1			3.5			6.8			2.0			17.4			5.0			3.2			1.7			9.9
Other operating expenses		(4.3	)		(3.6	)		(1.9	)		(5.8	)		(15.6	)		(3.8	)		(0.8	)		(4.4	)		(9.0	)
Segment income (loss) before income taxes	$	46.4		$	20.3		$	12.4		$	(2.0	)	$	77.1		$	36.4		$	39.0		$	0.8		$	76.2
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		59.1	%		69.7	%		60.9	%		N/M			63.2	%		58.7	%		69.5	%		N/M			64.0	%
Prior year (favorable) unfavorable reserve development		(1.8	)%		(1.2	)%		(7.2	)%		N/M			(2.9	)%		(2.9	)%		(3.4	)%		N/M			(3.2	)%
Catastrophe losses		0.9	%		4.3	%		13.7	%		N/M			5.3	%		2.4	%		2.1	%		N/M			2.2	%
Total loss and LAE ratio		58.2	%		72.8	%		67.4	%		N/M			65.6	%		58.2	%		68.2	%		N/M			63.0	%
Expense ratio		39.1	%		27.2	%		32.9	%		N/M			33.4	%		41.1	%		28.2	%		N/M			34.8	%
Combined ratio		97.3	%		100.0	%		100.3	%		N/M			99.0	%		99.3	%		96.4	%		N/M			97.8	%
Change in policies in force		7.1	%		(2.3	)%											24.7	%		(3.6	)%
Retention		85.9	%		80.8	%											81.5	%		78.7	%

5

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND SEGMENT INCOME INFORMATION AND RATIOS

CONSOLIDATED

Year ended December 31

	2011															2010
(In millions, except percentage data)	Commercial Lines			Personal Lines			Chaucer			Other P&C			Total P&C			Commercial Lines			Personal Lines			Other P&C			Total P&C
Gross premiums written	$	1,938.0		$	1,561.3		$	559.6		$	0.3		$	4,059.2		$	1,798.5		$	1,559.8		$	0.3		$	3,358.6
Net premiums written	$	1,703.1		$	1,461.2		$	428.8		$	0.3		$	3,593.4		$	1,584.8		$	1,462.9		$	0.3		$	3,048.0
Net premiums earned	$	1,641.7		$	1,450.5		$	506.3		$	0.1		$	3,598.6		$	1,373.4		$	1,467.3		$	0.3		$	2,841.0
Losses and LAE:
Current accident year, excluding catastrophe losses		1,004.8			988.2			299.2			0.3			2,292.5			810.6			996.2			0.3			1,807.1
Prior year (favorable) unfavorable reserve development		(34.7	)		(33.0	)		(35.5	)		(0.1	)		(103.3	)		(61.5	)		(48.8	)		(0.8	)		(111.1	)
Catastrophe losses		148.4			163.7			49.5			—			361.6			61.6			98.7			—			160.3
Total losses and LAE		1,118.5			1,118.9			313.2			0.2			2,550.8			810.7			1,046.1			(0.5	)		1,856.3
Policy acquisition and other underwriting expenses		644.5			404.6			181.8			0.2			1,231.1			583.3			419.6			—			1,002.9
GAAP underwriting profit (loss)		(121.3	)		(73.0	)		11.3			(0.3	)		(183.3	)		(20.6	)		1.6			0.8			(18.2	)
Net investment income		136.5			92.1			16.9			12.7			258.2			129.9			102.9			14.4			247.2
Other income		20.7			13.3			10.9			7.0			51.9			19.0			13.6			6.3			38.9
Other operating expenses		(17.9	)		(9.7	)		(6.8	)		(19.9	)		(54.3	)		(17.1	)		(5.1	)		(18.0	)		(40.2	)
Segment income (loss) before income taxes	$	18.0		$	22.7		$	32.3		$	(0.5	)	$	72.5		$	111.2		$	113.0		$	3.5		$	$227.7
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		61.3	%		68.1	%		59.1	%		N/M			63.7	%		59.1	%		67.9	%		N/M			63.6	%
Prior year (favorable) unfavorable reserve development		(2.1	)%		(2.3	)%		(7.0	)%		N/M			(2.9	)%		(4.5	)%		(3.3	)%		N/M			(3.9	)%
Catastrophe losses		9.0	%		11.3	%		9.8	%		N/M			10.0	%		4.5	%		6.7	%		N/M			5.6	%
Total loss and LAE ratio		68.2	%		77.1	%		61.9	%		N/M			70.8	%		59.1	%		71.3	%		N/M			65.3	%
Expense ratio		38.9	%		27.1	%		35.9	%		N/M			33.8	%		42.2	%		27.8	%		N/M			34.8	%
Combined ratio		107.1	%		104.2	%		97.8	%		N/M			104.6	%		101.3	%		99.1	%		N/M			100.1	%
Change in policies in force		7.1	%		(2.3	)%											24.7	%		(3.6	)%
Retention		84.1	%		80.8	%											80.3	%		78.7	%

6

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING INFORMATION AND RELATED RATIOS

CONSOLIDATED

(In millions, except percentage data)	Q4 2010			Q1 2011			Q2 2011			Q3 2011			Q4 2011			Dec-YTD 2010			Dec-YTD 2011
Gross premiums written	$	795.3		$	833.3		$	894.6		$	1,198.3		$	1,133.0		$	3,358.6		$	4,059.2
Net premiums written	$	717.1		$	749.9		$	815.4		$	1,051.0		$	977.1		$	3,048.0		$	3,593.4
Net premiums earned	$	748.7		$	761.7		$	770.5			1,018.6		$	1,047.8		$	2,841.0		$	3,598.6
Losses and LAE:
Current accident year, excluding catastrophe losses		478.6			489.8			476.1			664.1			662.5			1,807.1			2,292.5
Prior year (favorable) unfavorable reserve development		(23.7	)		(28.5	)		(15.3	)		(28.8	)		(30.7	)		(111.1	)		(103.3	)
Catastrophe losses		16.8			49.7			156.7			99.6			55.6			160.3			361.6
Total losses and LAE		471.7			511.0			617.5			734.9			687.4			1,856.3			2,550.8
Policy acquisition and other underwriting expenses		264.7			260.2			259.6			357.2			354.1			1,002.9			1,231.1
GAAP underwriting profit (loss)	$	12.3		$	(9.5	)	$	(106.6	)	$	(73.5	)	$	6.3		$	(18.2	)	$	(183.3	)
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		64.0	%		64.2	%		61.8	%		65.2	%		63.2	%		63.6	%		63.7	%
Prior year (favorable) unfavorable reserve development		(3.2	)%		(3.7	)%		(2.0	)%		(2.8	)%		(2.9	)%		(3.9	)%		(2.9	)%
Catastrophe losses		2.2	%		6.5	%		20.3	%		9.8	%		5.3	%		5.6	%		10.0	%
Total loss and LAE ratio		63.0	%		67.0	%		80.1	%		72.2	%		65.6	%		65.3	%		70.8	%
Expense ratio		34.8	%		33.7	%		33.2	%		34.6	%		33.4	%		34.8	%		33.8	%
Combined ratio		97.8	%		100.7	%		113.3	%		106.8	%		99.0	%		100.1	%		104.6	%
Combined ratio, excluding catastrophe losses		95.6	%		94.2	%		93.0	%		97.0	%		93.7	%		94.5	%		94.6	%
Current accident year combined ratio, excluding catastrophe losses		98.8	%		97.9	%		95.0	%		99.8	%		96.6	%		98.4	%		97.5	%

7

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND SEGMENT INCOME INFORMATION AND RATIOS

COMMERCIAL LINES

Three Months ended December 31

	2011															2011
(In millions, except percentage data)	Multiple Peril			Auto			Workers’ Comp			Other			Total			Multiple Peril			Auto			Workers’ Comp			Other			Total
Net premiums written	$	134.8		$	58.2		$	41.0		$	181.7		$	415.7		$	119.8		$	53.8		$	34.3		$	161.2		$	369.1
Net premiums earned	$	141.2		$	61.8		$	42.9		$	176.4		$	422.3		$	133.1		$	60.9		$	39.4		$	151.3		$	384.7
Losses and LAE:
Current accident year, excluding catastrophe losses		72.3			40.3			31.4			105.3			249.3			75.8			36.2			32.2			81.6			225.8
Prior year (favorable) unfavorable reserve development		(6.0	)		1.6			(5.2	)		2.1			(7.5	)		(5.8	)		1.0			(4.8	)		(1.7	)		(11.3	)
Catastrophe losses		5.1			(0.7	)		—			(0.4	)		4.0			7.9			—			—			1.2			9.1
Total losses and LAE		71.4			41.2			26.2			107.0			245.8			77.9			37.2			27.4			81.1			223.6
Policy acquisition and other underwriting expenses														165.8															159.2
GAAP underwriting profit (loss)														10.7															1.9
Net investment income														34.9															33.3
Other income														5.1															5.0
Other operating expenses														(4.3	)														(3.8	)
Segment income (loss) before income taxes													$	46.4														$	36.4
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		51.2	%		65.1	%		73.2	%		59.7	%		59.1	%		57.1	%		59.4	%		81.7	%		53.9	%		58.7	%
Prior year (favorable) unfavorable reserve development		(4.2	)%		2.6	%		(12.1	)%		1.2	%		(1.8	)%		(4.4	)%		1.6	%		(12.2	)%		(1.1	)%		(2.9	)%
Catastrophe losses		3.6	%		(1.1	)%		N/M			(0.2	)%		0.9	%		5.9	%		N/M			N/M			0.8	%		2.4	%
Total loss and LAE ratio		50.6	%		66.6	%		61.1	%		60.7	%		58.2	%		58.6	%		61.0	%		69.5	%		53.6	%		58.2	%
Expense ratio														39.1	%														41.1	%
Combined ratio														97.3	%														99.3	%
Change in policies in force		5.3	%		2.9	%		10.5	%		9.2	%		7.1	%		16.6	%		29.8	%		60.4	%		22.7	%		24.7	%
Retention		86.9	%		83.0	%		84.9	%		N/M			85.9	%		83.2	%		78.6	%		78.8	%		N/M			81.5	%

8

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND SEGMENT INCOME INFORMATION AND RATIOS

COMMERCIAL LINES

Year ended December 31

	2011															2010
(In millions, except percentage data)	Multiple Peril			Auto			Workers’ Comp			Other			Total			Multiple Peril			Auto			Workers’ Comp			Other			Total
Net premiums written	$	569.5		$	248.9		$	174.5		$	710.2		$	1,703.1		$	559.8		$	246.1		$	161.3		$	617.6		$	1,584.8
Net premiums earned	$	557.5		$	245.5		$	171.6		$	667.1		$	1,641.7		$	462.9		$	220.0		$	136.7		$	553.8		$	1,373.4
Losses and LAE:
Current accident year, excluding catastrophe losses		331.9			153.5			131.0			388.4			1,004.8			270.6			132.8			110.4			296.8			810.6
Prior year (favorable) unfavorable reserve development		(23.4	)		3.9			(18.0	)		2.8			(34.7	)		(29.2	)		(3.4	)		(27.5	)		(1.4	)		(61.5	)
Catastrophe losses		107.7			2.4			—			38.3			148.4			45.1			0.6			—			15.9			61.6
Total losses and LAE		416.2			159.8			113.0			429.5			1,118.5			286.5			130.0			82.9			311.3			810.7
Policy acquisition and other underwriting expenses														644.5															583.3
GAAP underwriting profit (loss)														(121.3	)														(20.6	)
Net investment income														136.5															129.9
Other income														20.7															19.0
Other operating expenses														(17.9	)														(17.1	)
Segment income (loss) before income taxes													$	18.0														$	111.2
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		59.5	%		62.5	%		76.4	%		58.3	%		61.3	%		58.5	%		60.2	%		80.7	%		53.6	%		59.1	%
Prior year (favorable) unfavorable reserve development		(4.2	)%		1.6	%		(10.5	)%		0.4	%		(2.1	)%		(6.3	)%		(1.5	)%		(20.1	)%		(0.3	)%		(4.5	)%
Catastrophe losses		19.3	%		1.0	%		N/M			5.7	%		9.0	%		9.7	%		0.3	%		N/M			2.9	%		4.5	%
Total loss and LAE ratio		74.6	%		65.1	%		65.9	%		64.4	%		68.2	%		61.9	%		59.0	%		60.6	%		56.2	%		59.1	%
Expense ratio														38.9	%														42.2	%
Combined ratio														107.1	%														101.3	%
Change in policies in force		5.3	%		2.9	%		10.5	%		9.2	%		7.1	%		16.6	%		29.8	%		60.4	%		22.7	%		24.7	%
Retention		85.8	%		81.7	%		81.1	%		N/M			84.1	%		81.7	%		78.4	%		76.7	%		N/M			80.3	%

9

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING INFORMATION AND RELATED RATIOS

COMMERCIAL LINES

(In millions, except percentage data)	Q4 2010			Q1 2011			Q2 2011			Q3 2011			Q4 2011			Dec-YTD 2010			Dec-YTD 2011
Gross premiums written	$	422.0		$	466.8		$	494.6		$	501.3		$	475.3		$	1,798.5		$	1,938.0
Net premiums written	$	369.1		$	408.5		$	440.5		$	438.4		$	415.7		$	1,584.8		$	1,703.1
Net premiums earned	$	384.7		$	400.8		$	408.5		$	410.1		$	422.3		$	1,373.4		$	1,641.7
Losses and LAE:
Current accident year, excluding catastrophe losses		225.8			244.1			240.7			270.7			249.3			810.6			1,004.8
Prior year (favorable) unfavorable reserve development		(11.3	)		(14.3	)		(9.3	)		(3.6	)		(7.5	)		(61.5	)		(34.7	)
Catastrophe losses		9.1			27.5			77.1			39.8			4.0			61.6			148.4
Total losses and LAE		223.6			257.3			308.5			306.9			245.8			810.7			1,118.5
Policy acquisition and other underwriting expenses		159.2			159.3			159.5			159.9			165.8			583.3			644.5
GAAP underwriting profit (loss)	$	1.9		$	(15.8	)	$	(59.5	)	$	(56.7	)	$	10.7		$	(20.6	)	$	(121.3	)
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		58.7	%		60.9	%		58.9	%		66.1	%		59.1	%		59.1	%		61.3	%
Prior year (favorable) unfavorable reserve development		(2.9	)%		(3.6	)%		(2.3	)%		(0.9	)%		(1.8	)%		(4.5	)%		(2.1	)%
Catastrophe losses		2.4	%		6.9	%		18.9	%		9.7	%		0.9	%		4.5	%		9.0	%
Total loss and LAE ratio		58.2	%		64.2	%		75.5	%		74.9	%		58.2	%		59.1	%		68.2	%
Expense ratio		41.1	%		39.5	%		38.8	%		38.7	%		39.1	%		42.2	%		38.9	%
Combined ratio		99.3	%		103.7	%		114.3	%		113.6	%		97.3	%		101.3	%		107.1	%
Combined ratio, excluding catastrophe losses		96.9	%		96.8	%		95.4	%		103.9	%		96.4	%		96.8	%		98.1	%
Current accident year combined ratio, excluding catastrophe losses		99.8	%		100.4	%		97.7	%		104.8	%		98.2	%		101.3	%		100.2	%

10

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND SEGMENT INCOME INFORMATION AND RATIOS

PERSONAL LINES

Three Months ended December 31

	2011												2010
(In millions, except percentage data)	Auto			Home			Other			Total			Auto			Home			Other			Total
Net premiums written	$	216.1		$	128.0		$	10.8		$	354.9		$	217.7		$	120.2		$	10.1		$	348.0
Net premiums earned	$	226.0		$	126.7		$	11.3		$	364.0		$	233.0		$	120.4		$	10.6		$	364.0
Losses and LAE:
Current accident year, excluding catastrophe losses		179.1			71.0			3.9			254.0			181.5			65.6			5.6			252.7
Prior year (favorable) unfavorable reserve development		(4.8	)		0.5			(0.2	)		(4.5	)		(10.0	)		(1.2	)		(1.0	)		(12.2	)
Catastrophe losses		2.7			12.8			0.2			15.7			0.3			7.2			0.2			7.7
Total losses and LAE		177.0			84.3			3.9			265.2			171.8			71.6			4.8			248.2
Policy acquisition and other underwriting expenses											102.0												105.5
GAAP underwriting profit (loss)											(3.2	)											10.3
Net investment income											23.6												26.3
Other income											3.5												3.2
Other operating expenses											(3.6	)											(0.8	)
Segment income (loss) before income taxes										$	20.3											$	39.0
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		79.2	%		56.0	%		34.5	%		69.7	%		77.9	%		54.4	%		52.8	%		69.5	%
Prior year (favorable) unfavorable reserve development		(2.1	)%		0.4	%		(1.8	)%		(1.2	)%		(4.3	)%		(1.0	)%		(9.4	)%		(3.4	)%
Catastrophe losses		1.2	%		10.1	%		1.8	%		4.3	%		0.1	%		6.0	%		1.9	%		2.1	%
Total loss and LAE ratio		78.3	%		66.5	%		34.5	%		72.8	%		73.7	%		59.4	%		45.3	%		68.2	%
Expense ratio											27.2	%											28.2	%
Combined ratio											100.0	%											96.4	%
Change in policies in force		(3.8	)%		(0.4	)%		(6.1	)%		(2.3	)%		(6.7	)%		0.2	%		(6.8	)%		(3.6	)%
Retention		79.0	%		82.3	%		N/M			80.8	%		76.3	%		80.8	%		N/M			78.7	%

11

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND SEGMENT INCOME INFORMATION AND RATIOS

PERSONAL LINES

Year ended December 31

	2011												2010
(In millions, except percentage data)	Auto			Home			Other			Total			Auto			Home			Other			Total
Net premiums written	$	910.5		$	507.2		$	43.5		$	1,461.2		$	935.1		$	485.5		$	42.3		$	1,462.9
Net premiums earned	$	912.8		$	494.7		$	43.0		$	1,450.5		$	946.3		$	478.9		$	42.1		$	1,467.3
Losses and LAE:
Current accident year, excluding catastrophe losses		683.3			288.2			16.7			988.2			717.8			259.6			18.8			996.2
Prior year (favorable) unfavorable reserve development		(33.6	)		(0.9	)		1.5			(33.0	)		(45.0	)		(1.4	)		(2.4	)		(48.8	)
Catastrophe losses		11.7			148.6			3.4			163.7			9.2			88.1			1.4			98.7
Total losses and LAE		661.4			435.9			21.6			1,118.9			682.0			346.3			17.8			1,046.1
Policy acquisition and other underwriting expenses											404.6												419.6
GAAP underwriting profit (loss)											(73.0	)											1.6
Net investment income											92.1												102.9
Other income											13.3												13.6
Other operating expenses											(9.7	)											(5.1	)
Segment income (loss) before income taxes										$	22.7											$	113.0
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		74.9	%		58.3	%		38.8	%		68.1	%		75.9	%		54.2	%		44.7	%		67.9	%
Prior year (favorable) unfavorable reserve development		(3.7	)%		(0.2	)%		3.5	%		(2.3	)%		(4.8	)%		(0.3	)%		(5.7	)%		(3.3	)%
Catastrophe losses		1.3	%		30.0	%		7.9	%		11.3	%		1.0	%		18.4	%		3.3	%		6.7	%
Total loss and LAE ratio		72.5	%		88.1	%		50.2	%		77.1	%		72.1	%		72.3	%		42.3	%		71.3	%
Expense ratio											27.1	%											27.8	%
Combined ratio											104.2	%											99.1	%
Change in policies in force		(3.8	)%		(0.4	)%		(6.1	)%		(2.3	)%		(6.7	)%		0.2	%		(6.8	)%		(3.6	)%
Retention		79.0	%		82.3	%		N/M			80.8	%		76.3	%		80.8	%		N/M			78.7	%

12

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING INFORMATION AND RELATED RATIOS

PERSONAL LINES

(In millions, except percentage data)	Q4 2010			Q1 2011			Q2 2011			Q3 2011			Q4 2011			Dec-YTD 2010			Dec-YTD 2011
Gross premiums written	$	373.3		$	366.5		$	399.7		$	415.1		$	380.0		$	1,559.8		$	1,561.3
Net premiums written	$	348.0		$	341.4		$	374.6		$	390.3		$	354.9		$	1,462.9		$	1,461.2
Net premiums earned	$	364.0		$	360.9		$	361.9		$	363.7		$	364.0		$	1,467.3		$	1,450.5
Losses and LAE:
Current accident year, excluding catastrophe losses		252.7			245.6			235.3			253.3			254.0			996.2			988.2
Prior year (favorable) unfavorable reserve development		(12.2	)		(14.1	)		(5.9	)		(8.5	)		(4.5	)		(48.8	)		(33.0	)
Catastrophe losses		7.7			22.2			79.6			46.2			15.7			98.7			163.7
Total losses and LAE		248.2			253.7			309.0			291.0			265.2			1,046.1			1,118.9
Policy acquisition and other underwriting expenses		105.5			101.0			100.0			101.6			102.0			419.6			404.6
GAAP underwriting profit (loss)	$	10.3		$	6.2		$	(47.1	)	$	(28.9	)	$	(3.2	)	$	1.6		$	(73.0	)
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		69.5	%		68.0	%		65.0	%		69.6	%		69.7	%		67.9	%		68.1	%
Prior year (favorable) unfavorable reserve development		(3.4	)%		(3.9	)%		(1.6	)%		(2.3	)%		(1.2	)%		(3.3	)%		(2.3	)%
Catastrophe losses		2.1	%		6.2	%		22.0	%		12.7	%		4.3	%		6.7	%		11.3	%
Total loss and LAE ratio		68.2	%		70.3	%		85.4	%		80.0	%		72.8	%		71.3	%		77.1	%
Expense ratio		28.2	%		27.2	%		26.8	%		27.1	%		27.2	%		27.8	%		27.1	%
Combined ratio		96.4	%		97.5	%		112.2	%		107.1	%		100.0	%		99.1	%		104.2	%
Combined ratio, excluding catastrophe losses		94.3	%		91.3	%		90.2	%		94.4	%		95.7	%		92.4	%		92.9	%
Current accident year combined ratio, excluding catastrophe losses		97.7	%		95.2	%		91.8	%		96.7	%		96.9	%		95.7	%		95.2	%

13

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND SEGMENT INCOME INFORMATION AND RATIOS

CHAUCER

Three Months ended December 31

	2011
(In millions, except percentage data)	Property		Marine & Aviation		Energy		UK Motor		Casualty & Other		Total
Gross premiums written	$	42.2	$	70.6	$	53.9	$	68.1	$	42.9	$	277.7
Net premiums written	$	33.2	$	51.2	$	37.0	$	58.8	$	26.3	$	206.5
Net premiums earned	$	69.3	$	58.9	$	41.5	$	64.6	$	27.2	$	261.5
Losses and LAE:
Current accident year, excluding catastrophe losses												159.2
Prior year (favorable) unfavorable reserve development												(18.9	)
Catastrophe losses												35.9
Total losses and LAE												176.2
Policy acquisition and other underwriting expenses												86.1
GAAP underwriting profit (loss)												(0.8	)
Net investment income												8.3
Other income												6.8
Other operating expenses												(1.9	)
Segment income (loss) before income taxes											$	12.4
Loss and LAE ratio:
Current accident year, excluding catastrophe losses												60.9	%
Prior year (favorable) unfavorable reserve development												(7.2	)%
Catastrophe losses												13.7	%
Total loss and LAE ratio												67.4	%
Expense ratio												32.9	%
Combined ratio												100.3	%

14

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND SEGMENT INCOME INFORMATION AND RATIOS

CHAUCER

Six Months ended December 31

	2011
(In millions, except percentage data)	Property		Marine & Aviation		Energy		UK Motor		Casualty & Other		Total
Gross premiums written	$	94.8	$	140.0	$	97.2	$	139.8	$	87.8	$	559.6
Net premiums written	$	72.8	$	107.4	$	66.7	$	121.8	$	60.1	$	428.8
Net premiums earned	$	121.7	$	119.0	$	82.6	$	124.4	$	58.6	$	506.3
Losses and LAE:
Current accident year, excluding catastrophe losses												299.2
Prior year (favorable) unfavorable reserve development												(35.5	)
Catastrophe losses												49.5
Total losses and LAE												313.2
Policy acquisition and other underwriting expenses												181.8
GAAP underwriting profit (loss)												11.3
Net investment income												16.9
Other income												10.9
Other operating expenses												(6.8	)
Segment income (loss) before income taxes											$	32.3
Loss and LAE ratio:
Current accident year, excluding catastrophe losses												59.1	%
Prior year (favorable) unfavorable reserve development												(7.0	)%
Catastrophe losses												9.8	%
Total loss and LAE ratio												61.9	%
Expense ratio												35.9	%
Combined ratio												97.8	%

15

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING INFORMATION AND RELATED RATIOS

CHAUCER

(In millions, except percentage data)	Q3 2011			Q4 2011			Dec-YTD 2011
Gross premiums written	$	281.9		$	277.7		$	559.6
Net premiums written	$	222.3		$	206.5		$	428.8
Net premiums earned	$	244.8		$	261.5		$	506.3
Losses and LAE:
Current accident year, excluding catastrophe losses		140.0			159.2			299.2
Prior year (favorable) unfavorable reserve development		(16.6	)		(18.9	)		(35.5	)
Catastrophe losses		13.6			35.9			49.5
Total losses and LAE		137.0			176.2			313.2
Policy acquisition and other underwriting expenses		95.7			86.1			181.8
GAAP underwriting profit (loss)	$	12.1		$	(0.8	)	$	11.3
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		57.2	%		60.9	%		59.1	%
Prior year (favorable) unfavorable reserve development		(6.8	)%		(7.2	)%		(7.0	)%
Catastrophe losses		5.6	%		13.7	%		9.8	%
Total loss and LAE ratio		56.0	%		67.4	%		61.9	%
Expense ratio		39.1	%		32.9	%		35.9	%
Combined ratio		95.1	%		100.3	%		97.8	%
Combined ratio, excluding catastrophe losses		89.5	%		86.6	%		88.0	%
Current accident year combined ratio, excluding catastrophe losses		96.3	%		93.8	%		95.0	%

16

THE HANOVER INSURANCE GROUP

NET INVESTMENT INCOME AND YIELDS

(In millions, except yields)	Q4 2010			Q1 2011			Q2 2011			Q3 2011			Q4 2011			YTD 2010			YTD 2011
																			(1)
Net Investment Income
Fixed maturities	$	61.5		$	60.6		$	60.3		$	66.1		$	67.3		$	248.6		$	254.3
Equity securities		2.2			1.3			1.4			1.5			2.6			4.5			6.8
Other investments		1.3			0.5			1.0			2.3			1.0			1.0			4.8
Investment expenses		(2.0	)		(2.0	)		(1.7	)		(2.1	)		(1.9	)		(6.9	)		(7.7	)
Total	$	63.0		$	60.4		$	61.0		$	67.8		$	69.0		$	247.2		$	258.2
Pre-tax Yields
Fixed maturities		5.37	%		5.28	%		5.35	%		4.49	%		4.48	%		5.46	%		4.84	%
Total		5.13	%		4.97	%		5.09	%		3.96	%		3.92	%		5.16	%		4.39	%

Pre-tax yields are calculated as annualized investment income divided by the average of investment balances at the end of each month during the period. Investment balances, for purposes of the pre-tax yield calculation, exclude unrealized capital gains and losses.

(1) Includes $16.9 million of income from assets acquired with Chaucer, with pre-tax yields on fixed maturities and total investments of 2.10% and 1.58%, respectively.

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THE HANOVER INSURANCE GROUP

INVESTMENT PORTFOLIO

December 31, 2011

(in millions)
Investment Type	Weighted Average Quality	Amortized Cost or Cost		Fair Value		% of Total			Net Unrealized Gain (Loss)			Change in Net Unrealized During Q4 2011			Change in Net Unrealized YTD
Fixed Maturities:
U.S. Treasury and government agencies	AAA	$	261.7	$	269.3		3.6	%	$	7.6		$	0.6		$	5.8
Foreign government	AAA		239.1		239.0		3.2	%		(0.1	)		(0.4	)		(0.1	)
Municipals:
Taxable	AA		792.5		850.9		11.3	%		58.4			0.1			59.4
Tax exempt	AA-		172.0		177.1		2.3	%		5.1			0.5			2.1
Corporate:
NAIC 1	A+		1,667.9		1,735.1		23.0	%		67.2			2.0			11.1
NAIC 2	BBB		1,224.6		1,304.0		17.3	%		79.4			2.5			9.2
NAIC 3 and below	B+		325.7		336.5		4.5	%		10.8			12.2			(7.3	)
Total corporate	BBB+		3,218.2		3,375.6		44.8	%		157.4			16.7			13.0
Asset backed:
Residential mortgage backed	AA+		816.1		848.6		11.2	%		32.5			(6.5	)		2.6
Commercial mortgage backed	AA+		367.6		379.1		5.0	%		11.5			3.5			(5.8	)
Asset backed	AA		141.5		145.1		1.9	%		3.6			—			(0.1	)
Total fixed maturities	A+		6,008.7		6,284.7		83.3	%		276.0			14.5			76.9
Equity securities			239.9		246.4		3.3	%		6.5			9.4			(1.4	)
Total fixed maturities and equity securities			6,248.6		6,531.1		86.6	%		282.5			23.9			75.5
Cash and cash equivalents			820.4		820.4		10.9	%		—			—			—
Other investments			187.3		190.2		2.5	%		2.9			1.9			0.2
Total		$	7,256.3	$	7,541.7		100.0	%	$	285.4		$	25.8		$	75.7

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THE HANOVER INSURANCE GROUP

CREDIT QUALITY AND DURATION OF FIXED MATURITIES

December 31, 2011

CREDIT QUALITY OF FIXED MATURITIES

(In millions)
NAIC Designation	Rating Agency Equivalent Designation	Amortized Cost		Fair Value		% of Total Fair Value
1	Aaa/Aa/A	$	4,325.1	$	4,510.7		71.8	%
2	Baa		1,338.7		1,419.7		22.6	%
3	Ba		151.2		160.0		2.5	%
4	B		134.5		136.4		2.2	%
5	Caa and lower		47.1		44.7		0.7	%
6	In or near default		12.1		13.2		0.2	%
Total fixed maturities		$	6,008.7	$	6,284.7		100.0	%

DURATION OF FIXED MATURITIES

(In millions)
	Amortized Cost		Fair Value		% of Total Fair Value
0-2 years	$	2,015.3	$	2,045.2		32.5	%
2-4 years		1,399.1		1,457.3		23.2	%
4-6 years		1,211.3		1,302.8		20.7	%
6-8 years		844.1		903.5		14.4	%
8-10 years		391.2		418.0		6.7	%
10+ years		147.7		157.9		2.5	%
Total fixed maturities	$	6,008.7	$	6,284.7		100.0	%
Weighted Average Duration		3.86

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THE HANOVER INSURANCE GROUP

TOP 10 CORPORATE AND MUNICIPAL FIXED MATURITY HOLDINGS

December 31, 2011

(In millions, except percentage data)
Issuer	Amortized Cost		Fair Value		As a Percent of Invested Assets			S&P Ratings
Royal Bank of Scotland: (1)
Term deposits (2)	$	163.2	$	156.2		2.07	%	A
Notes		6.9		6.4		0.08	%	A
Lloyds TSB Bank: (3)
Term deposits (2)		83.6		83.7		1.11	%	A
Notes		6.1		5.6		0.07	%	A
GE Capital		38.7		39.7		0.53	%	AA+
Santander US:
Term deposits (4)		33.4		33.4		0.44	%	A
Notes		4.3		4.2		0.06	%	AA-
Rabobank		29.1		29.3		0.39	%	AA
Wells Fargo		26.8		28.2		0.37	%	A+
Total Capital		25.2		26.1		0.35	%	AA-
Australia & New Zealand Bank		25.2		25.7		0.34	%	AA-
HSBC Bank		25.1		24.8		0.33	%	A+
American Express		21.6		23.0		0.31	%	BBB+
Top 10 Corporate and Municipal Fixed	$	489.2	$	486.3		6.45	%

(1) UK government owns 83% of bank equity

(2) Weighted average duration is approximately 1.5

(3) UK government owns 40% of bank equity

(4) Mature in April 2012

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THE HANOVER INSURANCE GROUP

RECONCILIATION OF SEGMENT INCOME TO NET INCOME

	Three Months ended December 31												Year ended December 31
	2011						2010						2011						2010
(In millions, except per share data)	$			Per Share (Diluted)			$			Per Share (Diluted)			$			Per Share (Diluted)			$			Per Share (Diluted)
SEGMENT INCOME
Commercial Lines	$	46.4					$	36.4					$	18.0					$	111.2
Personal Lines		20.3						39.0						22.7						113.0
Chaucer		12.4						—						32.3						—
Other Property and Casualty		(2.0	)					0.8						(0.5	)					3.5
Total		77.1						76.2						72.5						227.7
Interest expense on debt		(16.4	)					(11.5	)					(55.0	)					(44.3	)
Segment income before income taxes		60.7		$	1.34			64.7		$	1.41			17.5		$	0.38			183.4		$	3.96
Income tax expense on segment income		(15.5	)		(0.34	)		(21.0	)		(0.46	)		(2.9	)		(0.06	)		(61.2	)		(1.32	)
Segment income after income taxes		45.2			1.00			43.7			0.95			14.6			0.32			122.2			2.64
Net realized investment gains		3.2			0.07			12.9			0.28			28.1			0.61			29.7			0.64
Loss from retirement of debt		—			—			(2.0	)		(0.04	)		(2.3	)		(0.05	)		(2.0	)		(0.04	)
Costs related to acquired businesses		(0.7	)		(0.01	)		—			—			(16.4	)		(0.35	)		—			—
Net foreign exchange gains		—			—			—			—			6.7			0.15			—			—
Loss on derivative instruments		—			—			—			—			(11.3	)		(0.25	)		—			—
Income tax (expense) benefit on non-segment income		(1.6	)		(0.04	)		2.8			0.06			12.5			0.27			3.3			0.07
Income from continuing operations		46.1			1.02			57.4			1.25			31.9			0.70			153.2			3.31
Discontinued operations, net of taxes		3.2			0.07			1.0			0.02			5.2			0.11			1.6			0.03
NET INCOME	$	49.3		$	1.09		$	58.4		$	1.27		$	37.1		$	0.81		$	154.8		$	3.34

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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. These metrics include segment income before interest expense and taxes, total segment income after taxes, total segment income after 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 segment income and loss ratios excluding catastrophe losses and reserve development. After-tax segment income EPS (sometimes referred to as “after-tax segment income per share”) is a non-GAAP measure. It is defined as net income (loss) excluding the after-tax impact of net realized investment gains (losses), as well as results from discontinued operations for a period divided by the average number of diluted shares of common stock.

Segment income before interest expense and taxes is net income, excluding interest expense on debt, income taxes and net realized investment gains and losses, because fluctuations in these gains and losses are determined by interest rates, financial markets and the timing of sales. Segment income before interest expense and taxes also excludes net gains and losses on disposals of businesses, discontinued operations, restructuring costs, extraordinary items, the cumulative effect of accounting changes and certain other items. Segment income before interest expense and taxes is the sum of the segment income from: Commercial Lines, Personal Lines, Chaucer, and Other Property and Casualty. The Hanover believes that measures of segment income before interest expense and 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 investments, net of tax is total shareholders’ equity excluding the after-tax effect of unrealized investment gains and losses divided by the number of common shares outstanding. Tangible book value per share is total shareholders’ equity, excluding goodwill, divided by the number of common shares outstanding.

The Hanover also provides measures of segment income and loss ratios that exclude the effects of catastrophe losses. A catastrophe is a severe loss, resulting from natural or manmade events, including risks such as fire, hurricane, earthquake, windstorm, explosion, terrorism or other similar events. 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 segment 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.

Segment income before and after interest expense and taxes and measures of segment income that exclude the effects of catastrophe losses or reserve development should not be construed as substitutes for net income determined in accordance with GAAP. A reconciliation of income from continuing operations to segment income before interest expense and taxes and income from continuing operations per share to segment income after taxes per share for the three months and year ended December 31, 2011 and 2010 is set forth on page 21 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.

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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

645 West Grand River

Howell, MI 48843

Chaucer Holdings PLC

Plantation Place

30 Fenchurch Street

London

EC3M 3AD

MARKET AND DIVIDEND INFORMATION

The following information shows trading activity for the Company for the periods indicated:

Quarter Ended	2011
	Price Range				Dividends Per Share
	High		Low
March 31	$	48.82	$	45.08	$	0.275
June 30	$	46.15	$	36.18	$	0.275
September 30	$	37.97	$	31.22	$	0.275
December 31	$	39.23	$	33.26	$	0.300
Quarter Ended	2010
	Price Range				Dividends Per Share
	High		Low
March 31	$	44.63	$	40.51	$	0.25
June 30	$	45.72	$	42.33	$	0.25
September 30	$	47.00	$	43.16	$	0.25
December 31	$	47.73	$	45.25	$	0.25

INDUSTRY RATINGS AS OF FEBRUARY 8, 2012

Financial Strength Ratings	A.M. Best		Standard & Poor’s		Moody’s		Fitch
Property and Casualty Insurance Companies:
The Hanover Insurance Company		A		A-		A3		A-
Citizens Insurance Company of America		A		A-		—		A-
Debt Ratings	A.M. Best		Standard & Poor’s		Moody’s		Fitch
The Hanover Insurance Group, Inc. Senior Debt		bbb		BBB-		Baa3		BBB-
The Hanover Insurance Group, Inc. Junior Subordinated Debentures		bb+		BB-		Ba1		BB

TRANSFER AGENT

Computershare Limited

PO Box 43076

Providence, RI 02940-3076

1-800-317-4454

COMMON STOCK

Common stock of The Hanover Insurance Group is traded on the New York Stock Exchange under the symbol “THG”.

INQUIRIES

Oksana Lukasheva

Assistant Vice President

Investor Relations

(508) 855-2063

olukasheva@hanover.com

INVESTOR INFORMATION LINE

Dial 1-800-407-5222 to receive additional printed information, fax-on-demand services or other prerecorded messages.

Please visit our internet site at http:// www.Hanover.com

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