Exhibit 99.2

FINANCIAL SUPPLEMENT

THIRD QUARTER 2015

THE HANOVER INSURANCE GROUP

FINANCIAL SUPPLEMENT

TABLE OF CONTENTS

Business Descriptions	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 Operating 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

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. The Company exited this business effective June 30, 2015.

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

Included in Other are 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 a discontinued voluntary pools business.

1

THE HANOVER INSURANCE GROUP

FINANCIAL HIGHLIGHTS

(In millions, except earnings per share)	Q3 2014		Q4 2014		Q1 2015		Q2 2015		Q3 2015		Sep-YTD 2014		Sep-YTD 2015
PREMIUMS
Gross premiums written	$	1,388.2	$	1,245.5	$	1,456.0	$	1,434.5	$	1,379.7	$	4,219.9	$	4,270.2
Net premiums written (1)		1,244.8		1,116.8		1,215.1		1,293.4		1,199.6		3,693.3		3,708.1
Net premiums earned		1,184.0		1,188.6		1,211.0		1,205.8		1,150.1		3,521.7		3,566.9
EARNINGS
Operating income before interest and taxes	$	86.4	$	132.6	$	100.2	$	119.4	$	122.5	$	273.6	$	342.1
Operating income after taxes		47.7		79.6		57.1		70.4		72.2		153.1		199.7
Income from continuing operations		55.0		90.1		54.9		120.9		77.2		192.2		253.0
Net income		54.9		89.9		54.9		120.7		78.3		192.1		253.9
PER SHARE DATA (DILUTED)
Operating income after taxes	$	1.06	$	1.77	$	1.27	$	1.56	$	1.61	$	3.41	$	4.43
Income from continuing operations		1.22		2.01		1.22		2.69		1.72		4.29		5.62
Net income		1.22		2.00		1.22		2.68		1.74		4.28		5.64
Weighted average shares outstanding		44.9		45.0		45.1		45.0		44.9		44.9		45.0

BALANCE SHEET

(In millions, except per share data)	September 30 2014			December 31 2014			March 31 2015			June 30 2015			September 30 2015
Total assets	$	13,960.2		$	13,759.7		$	13,925.6		$	14,144.7		$	14,041.0
Total loss and loss adjustment expense reserves		6,435.0			6,391.7			6,483.6			6,591.3			6,606.3
Total shareholders’ equity		2,771.9			2,844.0			2,899.9			2,908.5			2,877.5
Total shareholders’ equity, excluding net unrealized appreciation depreciation on investments and derivative instruments, net of tax (2)		2,478.2			2,543.1			2,572.2			2,675.5			2,679.6
U.S. Property and Casualty Companies
Statutory surplus	$	1,998.6		$	2,057.1		$	2,088.2		$	2,126.6		$	2,129.4
Premium to surplus ratio		1.77:1			1.74:1			1.74:1			1.72:1			1.74:1
Book value per share	$	63.37		$	64.85		$	65.92		$	66.28		$	66.55
Book value per share, excluding net unrealized appreciation depreciation on investments and derivative instruments, net of tax (2)	$	56.65		$	57.98		$	58.47		$	60.96		$	61.97
Tangible book value per share (total book value excluding goodwill and intangibles)	$	56.30		$	57.91		$	59.12		$	59.79		$	60.05
Shares outstanding		43.7			43.9			44.0			43.9			43.2
Total debt/equity		32.6	%		31.8	%		29.0	%		28.7	%		28.2	%
Total debt/total capital		24.6	%		24.1	%		22.5	%		22.3	%		22.0	%

⁽¹⁾  Net premiums written for Chaucer do not reflect the June 30, 2015 transfer of $137.4 million of unearned premium reserves previously written by the U.K. motor business. This transfer of unearned premium reserves is part of the disposal of the U.K. motor business and has no impact on net premiums earned.

⁽²⁾  The calculation of this measure has been updated, including prior periods, to include all values contained within the caption of net unrealized appreciation (depreciation) on investments and derivative instruments, net of tax, as reported in the consolidated statements of shareholders’ equity in THG’s Form 10Q and Form 10K.

2

THE HANOVER INSURANCE GROUP

CONSOLIDATED INCOME STATEMENTS

	Three Months ended September 30								Nine Months ended September 30
(In millions)	2015		2014			% Change			2015			2014			% Change
REVENUES
Premiums earned	$	1,150.1	$	1,184.0			(2.9	)	$	3,566.9		$	3,521.7			1.3
Net investment income		68.3		67.5			1.2			209.1			201.5			3.8
Net realized investment gains		8.0		4.9			63.3			30.0			31.5			(4.8	)
Fees and other income		7.1		9.2			(22.8	)		23.3			27.8			(16.2	)
Total revenues		1,233.5		1,265.6			(2.5	)		3,829.3			3,782.5			1.2
LOSSES AND EXPENSES
Losses and loss adjustment expenses		690.7		755.6			(8.6	)		2,208.7			2,231.6			(1.0	)
Amortization of deferred acquisition costs		259.0		260.0			(0.4	)		781.6			773.3			1.1
Interest expense		14.7		16.3			(9.8	)		45.5			48.9			(7.0	)
Gain on disposal of U.K. motor business		—		—			N/M			(37.7	)		—			N/M
Other operating expenses		158.7		158.4			0.2			491.2			473.6			3.7
Total losses and expenses		1,123.1		1,190.3			(5.6	)		3,489.3			3,527.4			(1.1	)
Income from continuing operations before income taxes		110.4		75.3			46.6			340.0			255.1			33.3
Income tax expense		33.2		20.3			63.5			87.0			62.9			38.3
Income from continuing operations		77.2		55.0			40.4			253.0			192.2			31.6
Discontinued operations		1.1		(0.1	)		N/M			0.9			(0.1	)		N/M
Net income	$	78.3	$	54.9			42.6		$	253.9		$	192.1			32.2

3

THE HANOVER INSURANCE GROUP

CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)	September 30 2015			December 31 2014			% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $6,943.1 and $7,145.7)	$	7,084.9		$	7,378.1			(4.0	)
Equity securities, at fair value (cost of $527.4 and $506.6)		550.7			580.8			(5.2	)
Other investments		334.9			291.4			14.9
Total investments		7,970.5			8,250.3			(3.4	)
Cash and cash equivalents		385.1			373.3			3.2
Accrued investment income		66.2			66.9			(1.0	)
Premiums and accounts receivable, net		1,495.1			1,360.9			9.9
Reinsurance recoverable on paid and unpaid losses and unearned premiums		2,731.4			2,268.2			20.4
Deferred acquisition costs		527.1			525.7			0.3
Deferred income taxes		130.3			131.2			(0.7	)
Goodwill		184.0			184.6			(0.3	)
Other assets		469.5			486.6			(3.5	)
Assets of discontinued operations		81.8			112.0			(27.0	)
Total assets	$	14,041.0		$	13,759.7			2.0
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Loss and loss adjustment expense reserves	$	6,606.3		$	6,391.7			3.4
Unearned premiums		2,719.0			2,583.9			5.2
Expenses and taxes payable		689.3			695.4			(0.9	)
Reinsurance premiums payable		246.5			226.8			8.7
Debt		812.8			903.5			(10.0	)
Liabilities of discontinued operations		89.6			114.4			(21.7	)
Total liabilities		11,163.5			10,915.7			2.3
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		1,833.5			1,830.7			0.2
Accumulated other comprehensive income		104.0			206.4			(49.6	)
Retained earnings		1,749.8			1,558.7			12.3
Treasury stock at cost (17.3 and 16.6 million shares)		(810.4	)		(752.4	)		7.7
Total shareholders’ equity		2,877.5			2,844.0			1.2
Total liabilities and shareholders’ equity	$	14,041.0		$	13,759.7			2.0

4

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

CONSOLIDATED

Three Months ended September 30

	2015															2014
(In millions, except percentage data)	Commercial Lines			Personal Lines			Chaucer			Other			Total			Commercial Lines			Personal Lines			Chaucer			Other			Total
Gross premiums written	$	701.2		$	403.0		$	275.5		$	—		$	1,379.7		$	656.0		$	402.3		$	329.9		$	—		$	1,388.2
Net premiums written	$	617.6		$	383.3		$	198.7		$	—		$	1,199.6		$	576.6		$	379.1		$	289.1		$	—		$	1,244.8
Net premiums earned	$	560.4		$	358.6		$	231.1		$	—		$	1,150.1		$	521.9		$	353.0		$	309.1		$	—		$	1,184.0
Losses and LAE:
Current accident year, excluding catastrophe losses		324.6			219.4			123.3			—			667.3			299.9			213.5			176.0			—			689.4
Prior year unfavorable (favorable) reserve development		11.8			(2.5	)		(32.1	)		0.4			(22.4	)		1.1			(0.7	)		(22.6	)		0.3			(21.9	)
Catastrophe losses		13.8			20.1			11.9			—			45.8			20.4			51.6			16.1			—			88.1
Total losses and LAE		350.2			237.0			103.1			0.4			690.7			321.4			264.4			169.5			0.3			755.6
Amortization of deferred acquisition costs and other underwriting expenses		201.9			103.7			98.4			0.5			404.5			194.6			101.0			114.4			0.4			410.4
GAAP underwriting profit (loss)		8.3			17.9			29.6			(0.9	)		54.9			5.9			(12.4	)		25.2			(0.7	)		18.0
Net investment income		38.7			18.0			10.5			1.1			68.3			37.4			18.0			11.0			1.1			67.5
Other income		2.1			3.1			1.1			0.8			7.1			2.1			2.9			3.5			0.7			9.2
Other operating expenses		(2.0	)		(1.8	)		—			(4.0	)		(7.8	)		(2.3	)		(1.8	)		(0.3	)		(3.9	)		(8.3	)
Operating income (loss) before income taxes	$	47.1		$	37.2		$	41.2		$	(3.0	)	$	122.5		$	43.1		$	6.7		$	39.4		$	(2.8	)	$	86.4
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		57.9	%		61.2	%		53.4	%		N/M			58.0	%		57.5	%		60.5	%		56.9	%		N/M			58.2	%
Prior year unfavorable (favorable) reserve development		2.1	%		(0.7	)%		(13.9	)%		N/M			(1.9	)%		0.2	%		(0.2	)%		(7.3	)%		N/M			(1.8	)%
Catastrophe losses		2.5	%		5.6	%		5.1	%		N/M			4.0	%		3.9	%		14.6	%		5.2	%		N/M			7.4	%
Total loss and LAE ratio		62.5	%		66.1	%		44.6	%		N/M			60.1	%		61.6	%		74.9	%		54.8	%		N/M			63.8	%
Expense ratio		35.8	%		28.1	%		42.6	%		N/M			34.8	%		37.1	%		27.9	%		37.0	%		N/M			34.4	%
Combined ratio		98.3	%		94.2	%		87.2	%		N/M			94.9	%		98.7	%		102.8	%		91.8	%		N/M			98.2	%

5

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

CONSOLIDATED

Nine Months ended September 30

	2015															2014
(In millions, except percentage data)	Commercial Lines			Personal Lines			Chaucer			Other			Total			Commercial Lines			Personal Lines			Chaucer			Other			Total
Gross premiums written	$	2,000.1		$	1,153.9		$	1,116.2		$	—		$	4,270.2		$	1,866.8		$	1,140.8		$	1,212.3		$	—		$	4,219.9
Net premiums written (1)	$	1,768.6		$	1,088.0		$	851.5		$	—		$	3,708.1		$	1,656.9		$	1,069.1		$	967.3		$	—		$	3,693.3
Net premiums earned	$	1,663.6		$	1,068.2		$	835.1		$	—		$	3,566.9		$	1,552.2		$	1,053.5		$	916.0		$	—		$	3,521.7
Losses and LAE:
Current accident year, excluding catastrophe losses		960.5			668.2			501.5			0.1			2,130.3			904.3			663.9			532.5			—			2,100.7
Prior year unfavorable (favorable) reserve development		18.7			(6.6	)		(89.3	)		1.0			(76.2	)		3.5			(3.9	)		(71.4	)		1.0			(70.8	)
Catastrophe losses		70.9			66.5			17.2			—			154.6			77.6			97.2			26.9			—			201.7
Total losses and LAE		1,050.1			728.1			429.4			1.1			2,208.7			985.4			757.2			488.0			1.0			2,231.6
Amortization of deferred acquisition costs and other underwriting expenses		602.6			305.8			313.0			1.2			1,222.6			574.9			303.0			342.0			1.1			1,221.0
GAAP underwriting profit (loss)		10.9			34.3			92.7			(2.3	)		135.6			(8.1	)		(6.7	)		86.0			(2.1	)		69.1
Net investment income		116.7			54.2			34.8			3.4			209.1			111.9			53.9			32.2			3.5			201.5
Other income		6.4			9.0			5.6			2.3			23.3			6.2			8.9			10.5			2.2			27.8
Other operating expenses		(7.5	)		(5.9	)		(0.7	)		(11.8	)		(25.9	)		(6.6	)		(5.1	)		(2.0	)		(11.1	)		(24.8	)
Operating income (loss) before income taxes	$	126.5		$	91.6		$	132.4		$	(8.4	)	$	342.1		$	103.4		$	51.0		$	126.7		$	(7.5	)	$	273.6
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		57.7	%		62.6	%		60.0	%		N/M			59.7	%		58.2	%		63.1	%		58.2	%		N/M			59.6	%
Prior year unfavorable (favorable) reserve development		1.1	%		(0.6	)%		(10.7	)%		N/M			(2.1	)%		0.2	%		(0.4	)%		(7.8	)%		N/M			(2.0	)%
Catastrophe losses		4.3	%		6.2	%		2.1	%		N/M			4.3	%		5.0	%		9.2	%		2.9	%		N/M			5.7	%
Total loss and LAE ratio		63.1	%		68.2	%		51.4	%		N/M			61.9	%		63.4	%		71.9	%		53.3	%		N/M			63.3	%
Expense ratio		36.1	%		27.9	%		37.5	%		N/M			34.0	%		36.9	%		28.0	%		37.3	%		N/M			34.4	%
Combined ratio		99.2	%		96.1	%		88.9	%		N/M			95.9	%		100.3	%		99.9	%		90.6	%		N/M			97.7	%

(1) Net premiums written for Chaucer do not reflect the June 30, 2015 transfer of $137.4 million of unearned premium reserves previously written by the U.K. motor business. This transfer of unearned premium reserves is part of the disposal of the U.K. motor business and has no impact on net premiums earned.

6

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING INFORMATION AND RELATED RATIOS

CONSOLIDATED

(In millions, except percentage data)	Q3 2014			Q4 2014			Q1 2015			Q2 2015			Q3 2015			Sep-YTD 2014			Sep-YTD 2015
Gross premiums written	$	1,388.2		$	1,245.5		$	1,456.0		$	1,434.5		$	1,379.7		$	4,219.9		$	4,270.2
Net premiums written (1)	$	1,244.8		$	1,116.8		$	1,215.1		$	1,293.4		$	1,199.6		$	3,693.3		$	3,708.1
Net premiums earned	$	1,184.0		$	1,188.6		$	1,211.0		$	1,205.8		$	1,150.1		$	3,521.7		$	3,566.9
Losses and LAE:
Current accident year, excluding catastrophe losses		689.4			702.9			736.0			727.0			667.3			2,100.7			2,130.3
Prior year favorable reserve development		(21.9	)		(28.3	)		(25.2	)		(28.6	)		(22.4	)		(70.8	)		(76.2	)
Catastrophe losses		88.1			21.3			62.3			46.5			45.8			201.7			154.6
Total losses and LAE		755.6			695.9			773.1			744.9			690.7			2,231.6			2,208.7
Amortization of deferred acquisition costs and other underwriting expenses		410.4			428.6			405.5			412.6			404.5			1,221.0			1,222.6
GAAP underwriting profit	$	18.0		$	64.1		$	32.4		$	48.3		$	54.9		$	69.1		$	135.6
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		58.2	%		59.1	%		60.9	%		60.3	%		58.0	%		59.6	%		59.7	%
Prior year favorable reserve development		(1.8	)%		(2.4	)%		(2.1	)%		(2.4	)%		(1.9	)%		(2.0	)%		(2.1	)%
Catastrophe losses		7.4	%		1.8	%		5.1	%		3.9	%		4.0	%		5.7	%		4.3	%
Total loss and LAE ratio		63.8	%		58.5	%		63.9	%		61.8	%		60.1	%		63.3	%		61.9	%
Expense ratio		34.4	%		35.8	%		33.2	%		33.9	%		34.8	%		34.4	%		34.0	%
Combined ratio		98.2	%		94.3	%		97.1	%		95.7	%		94.9	%		97.7	%		95.9	%
Combined ratio, excluding catastrophe losses		90.8	%		92.5	%		92.0	%		91.8	%		90.9	%		92.0	%		91.6	%
Current accident year combined ratio, excluding catastrophe losses		92.6	%		94.9	%		94.1	%		94.2	%		92.8	%		94.0	%		93.7	%

(1) Net premiums written for Chaucer do not reflect the June 30, 2015 transfer of $137.4 million of unearned premium reserves previously written by the U.K. motor business. This transfer of unearned premium reserves is part of the disposal of the U.K. motor business and has no impact on net premiums earned.

7

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

COMMERCIAL LINES

Three Months ended September 30

	2015															2014
(In millions, except percentage data)	Multiple Peril			Auto			Workers’ Comp			Other			Total			Multiple Peril			Auto			Workers’ Comp			Other			Total
Net premiums written	$	218.3		$	81.7		$	66.0		$	251.6		$	617.6		$	199.5		$	79.3		$	63.7		$	234.1		$	576.6
Net premiums earned	$	185.0		$	76.1		$	64.9		$	234.4		$	560.4		$	172.3		$	75.3		$	60.2		$	214.1		$	521.9
Losses and LAE:
Current accident year, excluding catastrophe losses		96.9			52.6			44.3			130.8			324.6			90.3			51.8			43.1			114.7			299.9
Prior year unfavorable (favorable) reserve development		7.4			1.7			(4.8	)		7.5			11.8			—			3.1			(2.3	)		0.3			1.1
Catastrophe losses		6.1			(0.3	)		—			8.0			13.8			17.3			1.4			—			1.7			20.4
Total losses and LAE		110.4			54.0			39.5			146.3			350.2			107.6			56.3			40.8			116.7			321.4
Amortization of deferred acquisition costs and other underwriting expenses														201.9															194.6
GAAP underwriting profit														8.3															5.9
Net investment income														38.7															37.4
Other income														2.1															2.1
Other operating expenses														(2.0	)														(2.3	)
Operating income before income taxes													$	47.1														$	43.1
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		52.3	%		69.2	%		68.2	%		55.8	%		57.9	%		52.5	%		68.8	%		71.6	%		53.6	%		57.5	%
Prior year unfavorable (favorable) reserve development		4.0	%		2.2	%		(7.4	)%		3.2	%		2.1	%		—			4.1	%		(3.8	)%		0.1	%		0.2	%
Catastrophe losses		3.3	%		(0.4	)%		—			3.4	%		2.5	%		10.0	%		1.9	%		—			0.8	%		3.9	%
Total loss and LAE ratio		59.6	%		71.0	%		60.8	%		62.4	%		62.5	%		62.5	%		74.8	%		67.8	%		54.5	%		61.6	%
Expense ratio														35.8	%														37.1	%
Combined ratio														98.3	%														98.7	%
Change in policies in force		6.4	%		(3.7	)%		(8.3	)%		4.8	%		2.4	%		4.1	%		2.7	%		8.5	%		3.0	%		4.0	%
Retention		87.2	%		81.4	%		75.8	%		N/M			84.1	%		86.0	%		79.7	%		78.0	%		N/M			83.5	%

8

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

COMMERCIAL LINES

Nine Months ended September 30

	2015															2014
(In millions, except percentage data)	Multiple Peril			Auto			Workers’ Comp			Other			Total			Multiple Peril			Auto			Workers’ Comp			Other			Total
Net premiums written	$	586.8		$	237.6		$	207.5		$	736.7		$	1,768.6		$	544.1		$	231.9		$	193.6		$	687.3		$	1,656.9
Net premiums earned	$	543.6		$	228.4		$	196.8		$	694.8		$	1,663.6		$	509.6		$	226.6		$	178.4		$	637.6		$	1,552.2
Losses and LAE:
Current accident year, excluding catastrophe losses		284.0			161.3			134.8			380.4			960.5			269.2			160.9			126.8			347.4			904.3
Prior year unfavorable (favorable) reserve development		7.6			6.5			(11.5	)		16.1			18.7			(4.8	)		10.6			(4.2	)		1.9			3.5
Catastrophe losses		42.4			0.5			—			28.0			70.9			62.0			1.6			—			14.0			77.6
Total losses and LAE		334.0			168.3			123.3			424.5			1,050.1			326.4			173.1			122.6			363.3			985.4
Amortization of deferred acquisition costs and other underwriting expenses														602.6															574.9
GAAP underwriting profit (loss)														10.9															(8.1	)
Net investment income														116.7															111.9
Other income														6.4															6.2
Other operating expenses														(7.5	)														(6.6	)
Operating income before income taxes													$	126.5														$	103.4
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		52.3	%		70.7	%		68.4	%		54.8	%		57.7	%		52.8	%		71.0	%		71.1	%		54.4	%		58.2	%
Prior year unfavorable (favorable) reserve development		1.4	%		2.8	%		(5.8	)%		2.3	%		1.1	%		(0.9	)%		4.7	%		(2.4	)%		0.3	%		0.2	%
Catastrophe losses		7.8	%		0.2	%		—			4.0	%		4.3	%		12.2	%		0.7	%		—			2.2	%		5.0	%
Total loss and LAE ratio		61.5	%		73.7	%		62.6	%		61.1	%		63.1	%		64.1	%		76.4	%		68.7	%		56.9	%		63.4	%
Expense ratio														36.1	%														36.9	%
Combined ratio														99.2	%														100.3	%
Change in policies in force		6.4	%		(3.7	)%		(8.3	)%		4.8	%		2.4	%		4.1	%		2.7	%		8.5	%		3.0	%		4.0	%
Retention		86.4	%		81.2	%		77.3	%		N/M			83.7	%		85.3	%		79.4	%		77.7	%		N/M			82.9	%

9

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING INFORMATION AND RELATED RATIOS

COMMERCIAL LINES

(In millions, except percentage data)	Q3 2014			Q4 2014			Q1 2015			Q2 2015			Q3 2015			Sep-YTD 2014			Sep-YTD 2015
Gross premiums written	$	656.0		$	575.7		$	656.2		$	642.7		$	701.2		$	1,866.8		$	2,000.1
Net premiums written	$	576.6		$	499.0		$	581.9		$	569.1		$	617.6		$	1,656.9		$	1,768.6
Net premiums earned	$	521.9		$	529.2		$	546.2		$	557.0		$	560.4		$	1,552.2		$	1,663.6
Losses and LAE:
Current accident year, excluding catastrophe losses		299.9			311.8			318.7			317.2			324.6			904.3			960.5
Prior year unfavorable reserve development		1.1			5.7			0.9			6.0			11.8			3.5			18.7
Catastrophe losses		20.4			10.2			33.9			23.2			13.8			77.6			70.9
Total losses and LAE		321.4			327.7			353.5			346.4			350.2			985.4			1,050.1
Amortization of deferred acquisition costs and other underwriting expenses		194.6			201.7			198.6			202.1			201.9			574.9			602.6
GAAP underwriting profit (loss)	$	5.9		$	(0.2	)	$	(5.9	)	$	8.5		$	8.3		$	(8.1	)	$	10.9
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		57.5	%		58.9	%		58.4	%		56.9	%		57.9	%		58.2	%		57.7	%
Prior year unfavorable reserve development		0.2	%		1.1	%		0.2	%		1.1	%		2.1	%		0.2	%		1.1	%
Catastrophe losses		3.9	%		1.9	%		6.2	%		4.2	%		2.5	%		5.0	%		4.3	%
Total loss and LAE ratio		61.6	%		61.9	%		64.8	%		62.2	%		62.5	%		63.4	%		63.1	%
Expense ratio		37.1	%		37.9	%		36.2	%		36.1	%		35.8	%		36.9	%		36.1	%
Combined ratio		98.7	%		99.8	%		101.0	%		98.3	%		98.3	%		100.3	%		99.2	%
Combined ratio, excluding catastrophe losses		94.8	%		97.9	%		94.8	%		94.1	%		95.8	%		95.3	%		94.9	%
Current accident year combined ratio, excluding catastrophe losses		94.6	%		96.8	%		94.6	%		93.0	%		93.7	%		95.1	%		93.8	%

10

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

PERSONAL LINES

Three Months ended September 30

	2015												2014
(In millions, except percentage data)	Auto			Home			Other			Total			Auto			Home			Other			Total
Net premiums written	$	232.3		$	140.7		$	10.3		$	383.3		$	229.1		$	139.2		$	10.8		$	379.1
Net premiums earned	$	223.0		$	126.2		$	9.4		$	358.6		$	219.0		$	124.0		$	10.0		$	353.0
Losses and LAE:
Current accident year, excluding catastrophe losses		155.3			61.1			3.0			219.4			151.7			57.8			4.0			213.5
Prior year favorable reserve development		(1.5	)		—			(1.0	)		(2.5	)		(0.5	)		—			(0.2	)		(0.7	)
Catastrophe losses		2.2			17.4			0.5			20.1			8.1			43.3			0.2			51.6
Total losses and LAE		156.0			78.5			2.5			237.0			159.3			101.1			4.0			264.4
Amortization of deferred acquisition costs and other underwriting expenses											103.7												101.0
GAAP underwriting profit (loss)											17.9												(12.4	)
Net investment income											18.0												18.0
Other income											3.1												2.9
Other operating expenses											(1.8	)											(1.8	)
Operating income before income taxes										$	37.2											$	6.7
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		69.6	%		48.4	%		31.9	%		61.2	%		69.2	%		46.7	%		40.0	%		60.5	%
Prior year favorable reserve development		(0.7	)%		—			(10.6	)%		(0.7	)%		(0.2	)%		—			(2.0	)%		(0.2	)%
Catastrophe losses		1.0	%		13.8	%		5.3	%		5.6	%		3.7	%		34.9	%		2.0	%		14.6	%
Total loss and LAE ratio		69.9	%		62.2	%		26.6	%		66.1	%		72.7	%		81.6	%		40.0	%		74.9	%
Expense ratio											28.1	%											27.9	%
Combined ratio											94.2	%											102.8	%
Change in policies in force		(2.5	)%		(1.8	)%		(12.3	)%		(2.6	)%		(6.1	)%		(8.2	)%		(13.8	)%		(7.5	)%
Retention (1)		83.0	%		80.8	%		N/M			81.8	%		82.8	%		78.8	%		N/M			81.0	%

⁽¹⁾  The calculation has been updated, including prior periods, to reflect the ratio of net retained policies for the noted period to those policies available to renew over the same period.

11

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

PERSONAL LINES

Nine Months ended September 30

	2015												2014
(In millions, except percentage data)	Auto			Home			Other			Total			Auto			Home			Other			Total
Net premiums written	$	681.5		$	377.8		$	28.7		$	1,088.0		$	668.2		$	370.9		$	30.0		$	1,069.1
Net premiums earned	$	661.8		$	377.3		$	29.1		$	1,068.2		$	649.9		$	373.3		$	30.3		$	1,053.5
Losses and LAE:
Current accident year, excluding catastrophe losses		469.0			189.0			10.2			668.2			463.5			188.7			11.7			663.9
Prior year unfavorable (favorable) reserve development		(4.3	)		(1.4	)		(0.9	)		(6.6	)		(4.5	)		1.0			(0.4	)		(3.9	)
Catastrophe losses		3.3			62.3			0.9			66.5			9.4			86.9			0.9			97.2
Total losses and LAE		468.0			249.9			10.2			728.1			468.4			276.6			12.2			757.2
Amortization of deferred acquisition costs and other underwriting expenses											305.8												303.0
GAAP underwriting profit (loss)											34.3												(6.7	)
Net investment income											54.2												53.9
Other income											9.0												8.9
Other operating expenses											(5.9	)											(5.1	)
Operating income before income taxes										$	91.6											$	51.0
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		70.8	%		50.1	%		35.1	%		62.6	%		71.3	%		50.5	%		38.5	%		63.1	%
Prior year unfavorable (favorable) reserve development		(0.6	)%		(0.4	)%		(3.1	)%		(0.6	)%		(0.7	)%		0.3	%		(1.3	)%		(0.4	)%
Catastrophe losses		0.5	%		16.5	%		3.1	%		6.2	%		1.4	%		23.3	%		3.0	%		9.2	%
Total loss and LAE ratio		70.7	%		66.2	%		35.1	%		68.2	%		72.0	%		74.1	%		40.2	%		71.9	%
Expense ratio											27.9	%											28.0	%
Combined ratio											96.1	%											99.9	%
Change in policies in force		(2.5	)%		(1.8	)%		(12.3	)%		(2.6	)%		(6.1	)%		(8.2	)%		(13.8	)%		(7.5	)%
Retention (1)		83.0	%		80.8	%		N/M			81.8	%		82.8	%		78.8	%		N/M			81.0	%

⁽¹⁾  The calculation has been updated, including prior periods, to reflect the ratio of net retained policies for the noted period to those policies available to renew over the same period.

12

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING INFORMATION AND RELATED RATIOS

PERSONAL LINES

	Q3			Q4			Q1			Q2			Q3			Sep-YTD			Sep-YTD
(In millions, except percentage data)	2014			2014			2015			2015			2015			2014			2015
Gross premiums written	$	402.3		$	376.5		$	349.1		$	401.8		$	403.0		$	1,140.8		$	1,153.9
Net premiums written	$	379.1		$	353.7		$	326.4		$	378.3		$	383.3		$	1,069.1		$	1,088.0
Net premiums earned	$	353.0		$	353.6		$	352.9		$	356.7		$	358.6		$	1,053.5		$	1,068.2
Losses and LAE:
Current accident year, excluding catastrophe losses		213.5			214.1			226.0			222.8			219.4			663.9			668.2
Prior year favorable reserve development		(0.7	)		(1.2	)		(2.2	)		(1.9	)		(2.5	)		(3.9	)		(6.6	)
Catastrophe losses		51.6			9.2			25.5			20.9			20.1			97.2			66.5
Total losses and LAE		264.4			222.1			249.3			241.8			237.0			757.2			728.1
Amortization of deferred acquisition costs and other underwriting expenses		101.0			102.7			100.2			101.9			103.7			303.0			305.8
GAAP underwriting profit (loss)	$	(12.4	)	$	28.8		$	3.4		$	13.0		$	17.9		$	(6.7	)	$	34.3
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		60.5	%		60.5	%		64.1	%		62.4	%		61.2	%		63.1	%		62.6	%
Prior year favorable reserve development		(0.2	)%		(0.3	)%		(0.6	)%		(0.5	)%		(0.7	)%		(0.4	)%		(0.6	)%
Catastrophe losses		14.6	%		2.6	%		7.2	%		5.9	%		5.6	%		9.2	%		6.2	%
Total loss and LAE ratio		74.9	%		62.8	%		70.7	%		67.8	%		66.1	%		71.9	%		68.2	%
Expense ratio		27.9	%		28.3	%		27.7	%		27.9	%		28.1	%		28.0	%		27.9	%
Combined ratio		102.8	%		91.1	%		98.4	%		95.7	%		94.2	%		99.9	%		96.1	%
Combined ratio, excluding catastrophe losses		88.2	%		88.5	%		91.2	%		89.8	%		88.6	%		90.7	%		89.9	%
Current accident year combined ratio, excluding catastrophe losses		88.4	%		88.8	%		91.8	%		90.3	%		89.3	%		91.1	%		90.5	%

13

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

CHAUCER

Three Months ended September 30

	2015													2014
(In millions, except percentage data)	Property		Marine & Aviation		Energy		UK Motor		Casualty & Other		Total			Property		Marine & Aviation		Energy		UK Motor		Casualty & Other		Total
Gross premiums written	$	32.4	$	81.5	$	28.9	$	46.3	$	86.4	$	275.5		$	46.9	$	80.8	$	57.0	$	77.8	$	67.4	$	329.9
Net premiums written	$	29.5	$	70.4	$	21.4	$	—	$	77.4	$	198.7		$	38.9	$	68.1	$	43.3	$	78.4	$	60.4	$	289.1
Net premiums earned	$	42.5	$	71.2	$	41.1	$	—	$	76.3	$	231.1		$	46.9	$	73.1	$	48.7	$	75.5	$	64.9	$	309.1
Losses and LAE:
Current accident year, excluding catastrophe losses												123.3													176.0
Prior year favorable reserve development												(32.1	)												(22.6	)
Catastrophe losses												11.9													16.1
Total losses and LAE												103.1													169.5
Amortization of deferred acquisition costs and other underwriting expenses												98.4													114.4
GAAP underwriting profit												29.6													25.2
Net investment income												10.5													11.0
Other income												1.1													3.5
Other operating expenses												—													(0.3	)
Operating income before income taxes											$	41.2												$	39.4
Loss and LAE ratio:
Current accident year, excluding catastrophe losses												53.4	%												56.9	%
Prior year favorable reserve development												(13.9	)%												(7.3	)%
Catastrophe losses												5.1	%												5.2	%
Total loss and LAE ratio												44.6	%												54.8	%
Expense ratio												42.6	%												37.0	%
Combined ratio												87.2	%												91.8	%

14

THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS

CHAUCER

Nine Months ended September 30

	2015													2014
(In millions, except percentage data)	Property		Marine & Aviation		Energy		UK Motor		Casualty & Other		Total			Marine & Property		Aviation		Energy		UK Motor		Casualty & Other		Total
Gross premiums written	$	212.7	$	277.6	$	162.7	$	185.9	$	277.3	$	1,116.2		$	221.8	$	291.5	$	197.2	$	250.8	$	251.0	$	1,212.3
Net premiums written (1)	$	143.2	$	224.2	$	107.1	$	129.1	$	247.9	$	851.5		$	157.1	$	229.0	$	132.6	$	229.1	$	219.5	$	967.3
Net premiums earned	$	125.7	$	214.0	$	140.0	$	135.4	$	220.0	$	835.1		$	141.6	$	209.2	$	149.9	$	235.2	$	180.1	$	916.0
Losses and LAE:
Current accident year, excluding catastrophe losses												501.5													532.5
Prior year favorable reserve development												(89.3	)												(71.4	)
Catastrophe losses												17.2													26.9
Total losses and LAE												429.4													488.0
Amortization of deferred acquisition costs and other underwriting expenses												313.0													342.0
GAAP underwriting profit												92.7													86.0
Net investment income												34.8													32.2
Other income												5.6													10.5
Other operating expenses												(0.7	)												(2.0	)
Operating income before income taxes											$	132.4												$	126.7
Loss and LAE ratio:
Current accident year, excluding catastrophe losses												60.0	%												58.2	%
Prior year favorable reserve development												(10.7	)%												(7.8	)%
Catastrophe losses												2.1	%												2.9	%
Total loss and LAE ratio												51.4	%												53.3	%
Expense ratio												37.5	%												37.3	%
Combined ratio												88.9	%												90.6	%

(1) Net premiums written for Chaucer do not reflect the June 30, 2015 transfer of $137.4 million of unearned premium reserves previously written by the U.K. motor business. This transfer of unearned premium reserves is part of the disposal of the U.K. motor business and has no impact on net premiums earned.

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THE HANOVER INSURANCE GROUP

GAAP UNDERWRITING INFORMATION AND RELATED RATIOS

CHAUCER

(In millions, except percentage data)	Q3 2014			Q4 2014			Q1 2015			Q2 2015			Q3 2015			Sep-YTD 2014			Sep-YTD 2015
Gross premiums written	$	329.9		$	293.3		$	450.7		$	390.0		$	275.5		$	1,212.3		$	1,116.2
Net premiums written (1)	$	289.1		$	264.1		$	306.8		$	346.0		$	198.7		$	967.3		$	851.5
Net premiums earned	$	309.1		$	305.8		$	311.9		$	292.1		$	231.1		$	916.0		$	835.1
Losses and LAE:
Current accident year, excluding catastrophe losses		176.0			177.0			191.3			186.9			123.3			532.5			501.5
Prior year favorable reserve development		(22.6	)		(33.2	)		(24.2	)		(33.0	)		(32.1	)		(71.4	)		(89.3	)
Catastrophe losses		16.1			1.9			2.9			2.4			11.9			26.9			17.2
Total losses and LAE		169.5			145.7			170.0			156.3			103.1			488.0			429.4
Amortization of deferred acquisition costs and other underwriting expenses		114.4			123.6			106.3			108.3			98.4			342.0			313.0
GAAP underwriting profit	$	25.2		$	36.5		$	35.6		$	27.5		$	29.6		$	86.0		$	92.7
Loss and LAE ratio:
Current accident year, excluding catastrophe losses		56.9	%		58.0	%		61.4	%		64.0	%		53.4	%		58.2	%		60.0	%
Prior year favorable reserve development		(7.3	)%		(10.9	)%		(7.8	)%		(11.3	)%		(13.9	)%		(7.8	)%		(10.7	)%
Catastrophe losses		5.2	%		0.6	%		0.9	%		0.8	%		5.1	%		2.9	%		2.1	%
Total loss and LAE ratio		54.8	%		47.7	%		54.5	%		53.5	%		44.6	%		53.3	%		51.4	%
Expense ratio		37.0	%		40.4	%		34.1	%		37.1	%		42.6	%		37.3	%		37.5	%
Combined ratio		91.8	%		88.1	%		88.6	%		90.6	%		87.2	%		90.6	%		88.9	%
Combined ratio, excluding catastrophe losses		86.6	%		87.5	%		87.7	%		89.8	%		82.1	%		87.7	%		86.8	%
Current accident year combined ratio, excluding catastrophe losses		93.9	%		98.4	%		95.5	%		101.1	%		96.0	%		95.5	%		97.5	%

(1) Net premiums written for Chaucer do not reflect the June 30, 2015 transfer of $137.4 million of unearned premium reserves previously written by the U.K. motor business. This transfer of unearned premium reserves is part of the disposal of the U.K. motor business and has no impact on net premiums earned.

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THE HANOVER INSURANCE GROUP

NET INVESTMENT INCOME AND YIELDS

(In millions, except yields)	Q3 2014			Q4 2014			Q1 2015			Q2 2015			Q3 2015			YTD 2014			YTD 2015
Net Investment Income
Fixed maturities	$	63.4		$	64.5		$	64.7		$	63.6		$	62.5		$	191.3		$	190.8
Equity securities		4.5			4.2			3.9			4.8			4.2			12.3			12.9
Other investments		2.3			3.1			4.2			4.7			4.0			5.9			12.9
Investment expenses		(2.7	)		(3.0	)		(2.7	)		(2.4	)		(2.4	)		(8.0	)		(7.5	)
Total	$	67.5		$	68.8		$	70.1		$	70.7		$	68.3		$	201.5		$	209.1
Pre-tax Yields
Fixed maturities		3.68	%		3.65	%		3.64	%		3.60	%		3.64	%		3.73	%		3.61	%
Total		3.39	%		3.39	%		3.41	%		3.48	%		3.45	%		3.43	%		3.43	%

Pre-tax yields are calculated as annualized net investment income divided by the average of investment balances, excluding unrealized capital gains and losses, at the end of each month during the period.

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THE HANOVER INSURANCE GROUP

INVESTMENT PORTFOLIO

September 30, 2015

(In millions)
Investment Type	Weighted Average Quality	Amortized Cost or Cost		Fair Value		% of Total			Net Unrealized Gain (Loss)			Change in Net Unrealized During Q3			Change in Net Unrealized YTD
Fixed maturities:
U.S. Treasury and government agencies	AAA	$	455.9	$	463.2		5.6	%	$	7.3		$	5.1		$	3.2
Foreign government	AA+		266.9		268.6		3.2	%		1.7			1.5			(2.9	)
Municipals:
Taxable	AA		966.1		1,020.5		12.2	%		54.4			9.1			(0.3	)
Tax exempt	AA		120.0		123.3		1.5	%		3.3			0.8			(0.4	)
Corporate:
NAIC 1	A		1,700.3		1,749.1		20.9	%		48.8			1.3			(22.3	)
NAIC 2	BBB		1,556.2		1,584.7		19.0	%		28.5			(18.9	)		(34.8	)
NAIC 3 and below	B+		445.6		412.9		4.9	%		(32.7	)		(30.5	)		(32.8	)
Total corporate	BBB+		3,702.1		3,746.7		44.8	%		44.6			(48.1	)		(89.9	)
Asset backed:
Residential mortgage-backed	AA+		811.4		829.7		9.9	%		18.3			4.4			(0.4	)
Commercial mortgage-backed	AAA		523.1		535.0		6.4	%		11.9			4.8			0.8
Asset-backed	AAA		97.6		97.9		1.2	%		0.3			0.2			(0.7	)
Total fixed maturities	A+		6,943.1		7,084.9		84.8	%		141.8			(22.2	)		(90.6	)
Equity securities			527.4		550.7		6.6	%		23.3			(25.6	)		(50.9	)
Other investments			331.3		334.9		4.0	%		3.6			—			—
Total investments			7,801.8		7,970.5		95.4	%		168.7			(47.8	)		(141.5	)
Cash and cash equivalents			385.1		385.1		4.6	%		—			—			—
Total		$	8,186.9	$	8,355.6		100.0	%	$	168.7		$	(47.8	)	$	(141.5	)

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THE HANOVER INSURANCE GROUP

CREDIT QUALITY AND DURATION OF FIXED MATURITIES

September 30, 2015

(In millions)
CREDIT QUALITY OF FIXED MATURITIES
NAIC Designation	Rating Agency Equivalent Designation	Amortized Cost		Fair Value		% of Total Fair Value
1	Aaa/Aa/A	$	4,900.9	$	5,046.9		71.2	%
2	Baa		1,592.7		1,620.9		22.9	%
3	Ba		230.1		222.3		3.1	%
4	B		174.7		165.9		2.3	%
5	Caa and lower		39.6		26.1		0.4	%
6	In or near default		5.1		2.8		0.1	%
Total fixed maturities		$	6,943.1	$	7,084.9		100.0	%

DURATION OF FIXED MATURITIES
	Amortized Cost		Fair Value		% of Total Fair Value
0-2 Years	$	1,301.6	$	1,323.8		18.7	%
2-4 Years		1,972.3		2,018.9		28.5	%
4-6 Years		2,087.1		2,126.3		30.0	%
6-8 Years		1,291.3		1,313.6		18.5	%
8-10 Years		214.8		222.7		3.2	%
10+ Years		76.0		79.6		1.1	%
Total fixed maturities	$	6,943.1	$	7,084.9		100.0	%
Weighted Average Duration		4.22

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THE HANOVER INSURANCE GROUP

TOP 10 CORPORATE AND MUNICIPAL FIXED MATURITY HOLDINGS

September 30, 2015

(In millions, except percentage data)
Issuer	Amortized Cost		Fair Value		As a Percent of Invested Assets			S&P Ratings
JP Morgan	$	31.1	$	30.8		0.37	%	A
Morgan Stanley		27.4		27.0		0.32	%	A-
Glencore Funding		25.7		23.3		0.28	%	BBB
Bank of America		25.7		26.6		0.32	%	BBB+
Citigroup		25.0		26.0		0.31	%	A-
PNC Bank		24.4		25.2		0.30	%	A-
Metlife		24.1		24.9		0.30	%	A+
Wells Fargo		23.4		24.3		0.29	%	A+
CVS Caremark		23.3		24.5		0.29	%	BBB+
Capital One		23.2		23.2		0.28	%	BBB
Top 10 Corporate and Municipal Fixed	$	253.3	$	255.8		3.06	%

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THE HANOVER INSURANCE GROUP

RECONCILIATION OF OPERATING INCOME TO NET INCOME

	Three Months ended September 30												Nine Months ended September 30
	2015						2014						2015						2014
(In millions, except per share data)	$			Per Share (Diluted)			$			Per Share (Diluted)			$			Per Share (Diluted)			$			Per Share (Diluted)
OPERATING INCOME (LOSS)
Commercial Lines	$	47.1					$	43.1					$	126.5					$	103.4
Personal Lines		37.2						6.7						91.6						51.0
Chaucer		41.2						39.4						132.4						126.7
Other		(3.0	)					(2.8	)					(8.4	)					(7.5	)
Total		122.5						86.4						342.1						273.6
Interest expense		(14.7	)					(16.3	)					(45.5	)					(48.9	)
Operating income before income taxes		107.8		$	2.40			70.1		$	1.56			296.6		$	6.58			224.7		$	5.01
Income tax expense on operating income		(35.6	)		(0.79	)		(22.4	)		(0.50	)		(96.9	)		(2.15	)		(71.6	)		(1.60	)
Operating income after income taxes		72.2			1.61			47.7			1.06			199.7			4.43			153.1			3.41
Gain on disposal of U.K. motor business, net of tax		—			—			—			—			40.3			0.90			—			—
Other non-operating items:
Net realized investment gains		8.0			0.18			4.9			0.11			30.0			0.67			31.5			0.70
Loss from repurchase of debt		(5.6	)		(0.12	)		(0.1	)		—			(24.1	)		(0.54	)		(0.1	)		—
Other		0.2			—			0.4			0.01			(0.2	)		—			(1.0	)		(0.02	)
Income tax benefit on other non-operating items		2.4			0.05			2.1			0.04			7.3			0.16			8.7			0.20
Income from continuing operations, net of taxes		77.2			1.72			55.0			1.22			253.0			5.62			192.2			4.29
Discontinued operations, net of taxes		1.1			0.02			(0.1	)		—			0.9			0.02			(0.1	)		(0.01	)
NET INCOME	$	78.3		$	1.74		$	54.9		$	1.22		$	253.9		$	5.64		$	192.1		$	4.28

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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. The Company’s non-GAAP measures include operating income before interest expense and taxes, total operating income after taxes, total operating 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 operating income and loss ratios excluding catastrophe losses and reserve development. After-tax operating income EPS (sometimes referred to as “after-tax operating 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.

Operating 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. Operating 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. Operating income before interest expense and taxes is the sum of the operating income from: Commercial Lines, Personal Lines, Chaucer, and Other. The Hanover believes that measures of operating 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 operating 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 operating income excluding prior year reserve development is helpful to investors since it provides insight into both our estimate of current year accident results and changes to prior-year reserve estimates.

Operating income before and after interest expense and taxes and measures of operating 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 operating income before interest expense and taxes and income from continuing operations per share to operating income after taxes per share for the three and nine months ended September 30, 2015 and 2014 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

808 North Highlander Way

Howell, MI 48843

Chaucer Holdings Limited

Plantation Place

30 Fenchurch Street

London

EC3M 3AD

MARKET AND DIVIDEND INFORMATION

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

Quarter Ended	2015
	Price Range				Dividends
	High		Low		Per Share
March 31	$	73.35	$	68.18	$	0.410
June 30	$	74.87	$	68.57	$	0.410
September 30	$	82.82	$	75.39	$	0.410

Quarter Ended	2014
	Price Range				Dividends
	High		Low		Per Share
March 31	$	61.44	$	53.14	$	0.370
June 30	$	64.00	$	58.23	$	0.370
September 30	$	63.82	$	57.81	$	0.370
December 31	$	73.30	$	60.51	$	0.410

INDUSTRY RATINGS AS OF OCTOBER 28, 2015

Financial Strength Ratings	A.M. Best	Standard & Poor’s	Moody’s
The Hanover Insurance Company	A	A	A3
Citizens Insurance Company of America	A	A	—

Debt Ratings	A.M. Best	Standard & Poor’s	Moody’s
The Hanover Insurance Group, Inc.
Senior Debt	bbb	BBB	Baa3
Subordinated Debentures	bb+	BB+	Ba1

TRANSFER AGENT

Computershare Investor Services

PO Box 30170

College Station, TX 77842-3170

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

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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