Exhibit 99.2

FINANCIAL SUPPLEMENT
FIRST QUARTER 2018

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	5-6
Commercial Lines	7-8
Personal Lines	9-10
Chaucer	11-12
Investments
Net Investment Income and Yields	13
Investment Portfolio	14
Credit Quality and Duration of Fixed Maturities	15
Top 10 Corporate and Municipal Fixed Maturity Holdings	16
Reconciliation of Operating Income to Net Income	17
Other Information
Non-GAAP Financial Measures	18
Corporate Information	19
Market and Dividend Information	19
Financial Strength and Debt Ratings	19

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 marine, aviation and political, casualty, energy, property and treaty business.

Marine, Aviation & Political includes marine coverages that insure marine hull, liability, cargo and specie, fine art, and ports and terminals and political coverages that insure political violence (war, terrorism, aviation war), political risk and trade credit. It also includes aviation coverages that insure airline hull and liability, general aviation, refuellers, aviation products and satellite.

Casualty provides liability coverage worldwide for professional and commercial risks, credit and bond, crime and professional liability coverage for financial institutions, medical malpractice, excess workers’ compensation and accident and health, as well as syndicate participations.

Energy coverage, encompassing exploration and production, construction, downstream, operational power 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.

Property coverage insures property, including commercial and industrial businesses, against physical loss or damage and business interruption.

Treaty encompasses a broad range of casualty, property and marine exposures worldwide. International  casualty treaties cover motor, employer public, professional, pecuniary and miscellaneous liabilities. North American casualty comprises mainly excess of loss, written on an occurrence and claims made basis, and with a focus on medical malpractice supported by workers compensation clash business. Casualty also includes accident & health, a largely catastrophe exposed account, written for a range of perils. Property comprises mainly catastrophe and risk excess of loss for personal, commercial, excess and surplus lines carriers. Marine treaties, written on a whole account, specific or combined basis, focus on a broad range of assets and associated perils and liabilities.

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
		Q1				Q2				Q3				Q4				Q1
(In millions, except earnings per share)		2017				2017				2017				2017				2018
PREMIUMS
Gross premiums written	$		1,454.7		$		1,479.0		$		1,521.5		$		1,352.9		$		1,569.1
Net premiums written			1,186.8				1,275.7				1,322.5				1,173.2				1,264.6
Net premiums earned			1,181.3				1,181.2				1,226.9				1,244.0				1,263.6
EARNINGS
Operating income (loss) before interest and taxes	$		69.1		$		118.9		$		13.1		$		135.2		$		116.6
Operating income (loss) after taxes			40.8				72.3				4.7				86.0				84.0
Income (loss) from continuing operations			45.2				78.4				12.3				67.1				67.8
Net income (loss)			45.2				78.4				11.1				51.5				67.7
PER SHARE DATA (DILUTED)
Operating income (loss) after taxes	$		0.95		$		1.69		$		0.11		$		2.00		$		1.95
Income (loss) from continuing operations			1.05				1.83				0.28				1.56				1.57
Net income (loss)			1.05				1.83				0.26				1.20				1.57
Weighted average shares outstanding			42.9				42.8				42.9				43.0				43.1
BALANCE SHEET
		March 31				June 30				September 30				December 31				March 31
(In millions, except per share data)		2017				2017				2017				2017				2018
Total assets	$		14,490.8		$		14,792.7		$		15,389.3		$		15,469.6		$		15,334.2
Total loss and loss adjustment expense reserves			7,103.0				7,162.4				7,635.4				7,745.0				7,519.2
Total shareholders' equity			2,913.5				2,972.5				2,972.0				2,997.7				2,913.1
Total shareholders' equity, excluding net unrealized appreciation
depreciation on investments, net of tax			2,708.5				2,747.7				2,743.5				2,792.3				2,912.8
U.S. Property and Casualty Companies
Statutory surplus	$		2,229.5		$		2,006.3		$		2,061.9		$		2,077.1		$		2,126.5
Premium to surplus ratio		1.76:1				1.98:1				1.96:1				1.98:1				1.97:1
Book value per share	$		68.44		$		70.18		$		70.10		$		70.59		$		68.56
Book value per share, excluding net unrealized appreciation
depreciation on investments, net of tax	$		63.62		$		64.87		$		64.71		$		65.76		$		68.55
Tangible book value per share (total book value excluding goodwill
and intangibles)	$		62.20		$		63.88		$		63.49		$		63.94		$		61.90
Shares outstanding			42.6				42.4				42.4				42.5				42.5
Total debt/equity			27.0	%			26.5	%			26.5	%			26.3	%			27.0	%
Total debt/total capital			21.3	%			20.9	%			20.9	%			20.8	%			21.3	%

2

THE HANOVER INSURANCE GROUP
CONSOLIDATED INCOME STATEMENTS
	Three Months ended March 31
(In millions)		2018				2017			% Change
REVENUES
Premiums earned	$		1,263.6		$		1,181.3			7.0
Net investment income			82.9				71.1			16.6
Net realized and unrealized investment gains (losses):
Net realized gains from sales and other			0.3				3.3			(90.9	)
Net change in fair value of equity securities			(23.0	)			-		N/M
Net other-than-temporary impairment losses on investments
recognized in earnings			(0.7	)			(1.4	)		(50.0	)
Total net realized and unrealized investment gains (losses)			(23.4	)			1.9		N/M
Fees and other income			7.8				6.6			18.2
Total revenues			1,330.9				1,260.9			5.6
LOSSES AND EXPENSES
Losses and loss adjustment expenses			785.8				766.5			2.5
Amortization of deferred acquisition costs			288.0				266.4			8.1
Interest expense			12.4				12.0			3.3
Other operating expenses			164.1				157.0			4.5
Total losses and expenses			1,250.3				1,201.9			4.0
Income from continuing operations before income taxes			80.6				59.0			36.6
Income tax expense			12.8				13.8			(7.2	)
Income from continuing operations			67.8				45.2			50.0
									-
Discontinued operations			(0.1	)			-		N/M
Net income	$		67.7		$		45.2			49.8

3

THE HANOVER INSURANCE GROUP
CONSOLIDATED BALANCE SHEETS
		March 31				December 31
(In millions, except per share data)		2018				2017			% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $7,819.3 and $7,688.8)	$		7,758.3		$		7,779.7			(0.3	)
Equity securities, at fair value			550.9				576.5			(4.4	)
Other investments			712.7				685.5			4.0
Total investments			9,021.9				9,041.7			(0.2	)
Cash and cash equivalents			258.0				376.4			(31.5	)
Accrued investment income			63.9				62.7			1.9
Premiums and accounts receivable, net			1,683.4				1,567.6			7.4
Reinsurance recoverable on paid and unpaid losses and unearned premiums			2,881.3				3,057.0			(5.7	)
Deferred acquisition costs			554.1				550.2			0.7
Deferred income taxes			65.4				29.2			124.0
Goodwill			192.6				192.6		-
Other assets			524.3				504.2			4.0
Assets of discontinued operations			89.3				88.0			1.5
Total assets	$		15,334.2		$		15,469.6			(0.9	)
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Loss and loss adjustment expense reserves	$		7,519.2		$		7,745.0			(2.9	)
Unearned premiums			2,867.3				2,763.6			3.8
Expenses and taxes payable			662.0				716.2			(7.6	)
Reinsurance premiums payable			469.8				344.8			36.3
Debt			787.0				786.9			-
Liabilities of discontinued operations			115.8				115.4			0.3
Total liabilities			12,421.1				12,471.9			(0.4	)
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			1,858.3				1,857.0			0.1
Accumulated other comprehensive income			(120.4	)			107.6			(211.9	)
Retained earnings			2,124.1				1,975.0			7.5
Treasury stock at cost (18.0 million shares)			(949.5	)			(942.5	)		0.7
Total shareholders' equity			2,913.1				2,997.7			(2.8	)
Total liabilities and shareholders' equity	$		15,334.2		$		15,469.6			(0.9	)

4

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
CONSOLIDATED
Three Months ended March 31
		2018																				2017
		Commercial				Personal																Commercial				Personal
(In millions, except percentage data)		Lines				Lines				Chaucer				Other				Total				Lines				Lines				Chaucer				Other				Total
Gross premiums written	$		759.0		$		419.6		$		390.5		$		-		$		1,569.1		$		718.0		$		383.2		$		353.5		$		-		$		1,454.7
Net premiums written	$		671.9		$		396.8		$		195.9		$		-		$		1,264.6		$		625.3		$		362.1		$		199.4		$		-		$		1,186.8
Net premiums earned	$		629.0		$		413.5		$		221.1		$		-		$		1,263.6		$		588.3		$		381.8		$		211.2		$		-		$		1,181.3
Losses and LAE:
Current accident year, excluding catastrophe losses			353.2				251.8				118.0				-				723.0				339.3				237.4				107.7				-				684.4
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			(1.6	)			1.6				(8.7	)			0.3				(8.4	)			(0.1	)			0.1				(2.3	)			0.3				(2.0	)
Current accident year catastrophe losses			44.6				27.7				8.4				-				80.7				36.4				40.4				12.7				-				89.5
Prior accident year favorable catastrophe loss development			(6.6	)			(0.2	)			(2.7	)			-				(9.5	)			-				-				(5.4	)			-				(5.4	)
Total losses and LAE			389.6				280.9				115.0				0.3				785.8				375.6				277.9				112.7				0.3				766.5
Amortization of deferred acquisition costs and other underwriting expenses			223.0				117.9				99.9				1.0				441.8				215.4				112.3				84.7				0.6				413.0
															-
GAAP underwriting profit (loss)			16.4				14.7				6.2				(1.3	)			36.0				(2.7	)			(8.4	)			13.8				(0.9	)			1.8
Net investment income			45.3				18.4				16.4				2.8				82.9				40.3				17.1				12.4				1.3				71.1
Other income			2.3				3.0				1.9				0.6				7.8				1.9				2.9				1.1				0.7				6.6
Other operating expenses			(2.5	)			(1.7	)			(1.6	)			(4.3	)			(10.1	)			(2.1	)			(1.7	)			(2.4	)			(4.2	)			(10.4	)
Operating income (loss) before income taxes	$		61.5		$		34.4		$		22.9		$		(2.2	)	$		116.6		$		37.4		$		9.9		$		24.9		$		(3.1	)	$		69.1
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			56.2	%			60.8	%			53.3	%		N/M					57.3	%			57.6	%			62.2	%			51.0	%		N/M					57.9	%
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			(0.3	)%			0.4	%			(3.9	)%		N/M					(0.7	)%			-				-				(1.1	)%		N/M					(0.2	)%
Current accident year catastrophe losses			7.0	%			6.7	%			3.8	%		N/M					6.4	%			6.2	%			10.6	%			6.1	%		N/M					7.6	%
Prior accident year favorable catastrophe loss development			(1.0	)%			-				(1.2	)%		N/M					(0.8	)%			-				-				(2.6	)%		N/M					(0.5	)%
Total loss and LAE ratio			61.9	%			67.9	%			52.0	%		N/M					62.2	%			63.8	%			72.8	%			53.4	%		N/M					64.8	%
Expense ratio			35.3	%			27.9	%			45.2	%		N/M					34.7	%			36.4	%			28.8	%			40.1	%		N/M					34.7	%
Combined ratio			97.2	%			95.8	%			97.2	%		N/M					96.9	%			100.2	%			101.6	%			93.5	%		N/M					99.5	%

5

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING INFORMATION AND RELATED RATIOS
CONSOLIDATED
		Q1				Q2				Q3				Q4				Q1
(In millions, except percentage data)		2017				2017				2017				2017				2018
Gross premiums written	$		1,454.7		$		1,479.0		$		1,521.5		$		1,352.9		$		1,569.1
Net premiums written	$		1,186.8		$		1,275.7		$		1,322.5		$		1,173.2		$		1,264.6
Net premiums earned	$		1,181.3		$		1,181.2		$		1,226.9		$		1,244.0		$		1,263.6
Losses and LAE:
Current accident year, excluding catastrophe losses			684.4				683.2				691.9				714.8				723.0
Prior accident year favorable reserve development, excluding catastrophe losses			(2.0	)			(15.3	)			(12.2	)			(3.4	)			(8.4	)
Current accident year catastrophe losses			89.5				58.9				202.4				57.3				80.7
Prior accident year favorable catastrophe loss development			(5.4	)			(1.8	)			(7.9	)			(10.4	)			(9.5	)
Total losses and LAE			766.5				725.0				874.2				758.3				785.8
Amortization of deferred acquisition costs and other underwriting expenses			413.0				407.3				414.3				428.5				441.8
GAAP underwriting profit (loss)	$		1.8		$		48.9		$		(61.6	)	$		57.2		$		36.0
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			57.9	%			57.9	%			56.4	%			57.5	%			57.3	%
Prior accident year favorable reserve development, excluding catastrophe losses			(0.2	)%			(1.3	)%			(1.0	)%			(0.3	)%			(0.7	)%
Current accident year catastrophe losses			7.6	%			5.0	%			16.5	%			4.6	%			6.4	%
Prior accident year favorable catastrophe loss development			(0.5	)%			(0.2	)%			(0.6	)%			(0.8	)%			(0.8	)%
Total loss and LAE ratio			64.8	%			61.4	%			71.3	%			61.0	%			62.2	%
Expense ratio			34.7	%			34.2	%			33.5	%			34.1	%			34.7	%
Combined ratio			99.5	%			95.6	%			104.8	%			95.1	%			96.9	%
Combined ratio, excluding catastrophe losses			92.4	%			90.8	%			88.9	%			91.3	%			91.3	%
Current accident year combined ratio, excluding catastrophe losses			92.6	%			92.1	%			89.9	%			91.6	%			92.0	%

6

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
COMMERCIAL LINES
Three Months ended March 31
	2018																				2017
		Multiple								Workers'												Multiple								Workers'
(In millions, except percentage data)		Peril				Auto				Comp				Other				Total				Peril				Auto				Comp				Other				Total
Net premiums written	$		215.9		$		89.7		$		93.1		$		273.2		$		671.9		$		203.0		$		83.0		$		89.2		$		250.1		$		625.3
Net premiums earned	$		207.7		$		82.2		$		78.6		$		260.5		$		629.0		$		197.9		$		77.3		$		72.8		$		240.3		$		588.3
Losses and LAE:
Current accident year, excluding catastrophe losses			116.0				56.0				47.8				133.4				353.2				113.4				53.7				46.1				126.1				339.3
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			(0.8	)			3.3				(2.6	)			(1.5	)			(1.6	)			-				-				-				(0.1	)			(0.1	)
Current accident year catastrophe losses			31.9				0.3				-				12.4				44.6				21.5				0.6				-				14.3				36.4
Prior accident year unfavorable (favorable) catastrophe loss development			(5.2	)			-				-				(1.4	)			(6.6	)			1.2				(0.1	)			-				(1.1	)			-
Total losses and LAE			141.9				59.6				45.2				142.9				389.6				136.1				54.2				46.1				139.2				375.6
Amortization of deferred acquisition costs and other underwriting expenses																			223.0																				215.4
GAAP underwriting profit (loss)																			16.4																				(2.7	)
Net investment income																			45.3																				40.3
Other income																			2.3																				1.9
Other operating expenses																			(2.5	)																			(2.1	)
Operating income before income taxes																	$		61.5																		$		37.4
																														.
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			55.8	%			68.1	%			60.8	%			51.3	%			56.2	%			57.3	%			69.5	%			63.3	%			52.4	%			57.6	%
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			(0.4	)%			4.0	%			(3.3	)%			(0.6	)%			(0.3	)%			-				-				-				-				-
Current accident year catastrophe losses			15.4	%			0.4	%			-				4.7	%			7.0	%			10.9	%			0.7	%			-				6.0	%			6.2	%
Prior accident year unfavorable (favorable) catastrophe loss development			(2.5	)%			-				-				(0.5	)%			(1.0	)%			0.6	%			(0.1	)%			-				(0.5	)%			-
Total loss and LAE ratio			68.3	%			72.5	%			57.5	%			54.9	%			61.9	%			68.8	%			70.1	%			63.3	%			57.9	%			63.8	%
Expense ratio																			35.3	%																			36.4	%
Combined ratio																			97.2	%																			100.2	%
Change in policies in force			7.6	%			3.9	%			12.8	%			5.7	%			7.0	%			5.6	%			(1.7	)%			10.5	%			5.8	%			5.4	%
Retention			86.7	%			85.0	%			80.6	%		N/M					85.1	%			86.8	%			81.6	%			81.9	%		N/M					84.7	%

7

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING INFORMATION AND RELATED RATIOS
COMMERCIAL LINES
		Q1				Q2				Q3				Q4				Q1
(In millions, except percentage data)		2017				2017				2017				2017				2018
Gross premiums written	$		718.0		$		685.2		$		772.8		$		650.8		$		759.0
Net premiums written	$		625.3		$		591.6		$		680.2		$		564.9		$		671.9
Net premiums earned	$		588.3		$		591.2		$		604.0		$		616.1		$		629.0
Losses and LAE:
Current accident year, excluding catastrophe losses			339.3				335.8				342.9				349.7				353.2
Prior accident year favorable reserve development, excluding catastrophe losses			(0.1	)			-				-				(9.3	)			(1.6	)
Current accident year catastrophe losses			36.4				43.4				62.5				29.7				44.6
Prior accident year favorable catastrophe loss development			-				(0.8	)			(0.4	)			(0.2	)			(6.6	)
Total losses and LAE			375.6				378.4				405.0				369.9				389.6
Amortization of deferred acquisition costs and other underwriting expenses			215.4				210.5				212.7				219.4				223.0
			-
GAAP underwriting profit (loss)	$		(2.7	)	$		2.3		$		(13.7	)	$		26.8		$		16.4
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			57.6	%			56.8	%			56.8	%			56.7	%			56.2	%
Prior accident year favorable reserve development, excluding catastrophe losses			-				-				-				(1.5	)%			(0.3	)%
Current accident year catastrophe losses			6.2	%			7.3	%			10.4	%			4.8	%			7.0	%
Prior accident year favorable catastrophe loss development			-				(0.1	)%			(0.1	)%			-				(1.0	)%
Total loss and LAE ratio			63.8	%			64.0	%			67.1	%			60.0	%			61.9	%
Expense ratio			36.4	%			35.4	%			35.0	%			35.4	%			35.3	%
Combined ratio			100.2	%			99.4	%			102.1	%			95.4	%			97.2	%
Combined ratio, excluding catastrophe losses			94.0	%			92.2	%			91.8	%			90.6	%			91.2	%
Current accident year combined ratio, excluding catastrophe losses			94.0	%			92.2	%			91.8	%			92.1	%			91.5	%

8

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
PERSONAL LINES
Three Months ended March 31
	2018																2017
(In millions, except percentage data)		Auto				Home				Other				Total				Auto				Home				Other				Total
Net premiums written	$		262.5		$		125.6		$		8.7		$		396.8		$		239.6		$		114.4		$		8.1		$		362.1
Net premiums earned	$		260.2		$		143.5		$		9.8		$		413.5		$		238.6		$		133.8		$		9.4		$		381.8
Losses and LAE:
Current accident year, excluding catastrophe losses			181.8				65.9				4.1				251.8				168.5				65.5				3.4				237.4
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			1.1				0.7				(0.2	)			1.6				-				-				0.1				0.1
Current accident year catastrophe losses			1.4				26.0				0.3				27.7				1.7				38.6				0.1				40.4
Prior accident year unfavorable (favorable) catastrophe loss development			(0.3	)			(0.2	)			0.3				(0.2	)			(0.2	)			0.2				-				-
Total losses and LAE			184.0				92.4				4.5				280.9				170.0				104.3				3.6				277.9
Amortization of deferred acquisition costs and other underwriting expenses															117.9																112.3
GAAP underwriting profit (loss)															14.7																(8.4	)
Net investment income															18.4																17.1
Other income															3.0																2.9
Other operating expenses															(1.7	)															(1.7	)
Operating income before income taxes													$		34.4														$		9.9
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			69.9	%			45.9	%			41.8	%			60.8	%			70.6	%			49.0	%			36.1	%			62.2	%
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			0.4	%			0.5	%			(2.0	)%			0.4	%			-				-				1.1	%			-
Current accident year catastrophe losses			0.5	%			18.1	%			3.0	%			6.7	%			0.7	%			28.9	%			1.1	%			10.6	%
Prior accident year unfavorable (favorable) catastrophe loss development			(0.1	)%			(0.1	)%			3.1	%			-				(0.1	)%			0.1	%			-				-
Total loss and LAE ratio			70.7	%			64.4	%			45.9	%			67.9	%			71.2	%			78.0	%			38.3	%			72.8	%
Expense ratio															27.9	%															28.8	%
Combined ratio															95.8	%															101.6	%
Change in policies in force			3.9	%			4.0	%			(5.9	)%			3.6	%			2.5	%			2.6	%			(11.4	)%			2.1	%
Retention			86.1	%			84.2	%		N/M					85.3	%			85.9	%			83.3	%		N/M					84.8	%

9

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING INFORMATION AND RELATED RATIOS
PERSONAL LINES
		Q1				Q2				Q3				Q4				Q1
(In millions, except percentage data)		2017				2017				2017				2017				2018
Gross premiums written	$		383.2		$		453.5		$		462.0		$		438.0		$		419.6
Net premiums written	$		362.1		$		430.5		$		438.8		$		415.7		$		396.8
Net premiums earned	$		381.8		$		391.3		$		400.4		$		407.3		$		413.5
Losses and LAE:
Current accident year, excluding catastrophe losses			237.4				235.7				232.1				248.8				251.8
Prior accident year unfavorable reserve development, excluding catastrophe losses			0.1				-				-				9.3				1.6
Current accident year catastrophe losses			40.4				13.3				15.0				12.2				27.7
Prior accident year favorable catastrophe loss development			-				-				-				-				(0.2	)
Total losses and LAE			277.9				249.0				247.1				270.3				280.9
Amortization of deferred acquisition costs and other underwriting expenses			112.3				112.8				112.5				114.8				117.9
GAAP underwriting profit (loss)	$		(8.4	)	$		29.5		$		40.8		$		22.2		$		14.7
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			62.2	%			60.2	%			58.0	%			61.1	%			60.8	%
Prior accident year unfavorable reserve development, excluding catastrophe losses			-				-				-				2.3	%			0.4	%
Current accident year catastrophe losses			10.6	%			3.4	%			3.7	%			3.0	%			6.7	%
Prior accident year unfavorable catastrophe loss development			-				-				-				-				-
Total loss and LAE ratio			72.8	%			63.6	%			61.7	%			66.4	%			67.9	%
Expense ratio			28.8	%			28.2	%			27.5	%			27.6	%			27.9	%
Combined ratio			101.6	%			91.8	%			89.2	%			94.0	%			95.8	%
Combined ratio, excluding catastrophe losses			91.0	%			88.4	%			85.5	%			91.0	%			89.1	%
Current accident year combined ratio, excluding catastrophe losses			91.0	%			88.4	%			85.5	%			88.7	%			88.7	%

10

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
CHAUCER
Three Months ended March 31
	2018																			2017
		Marine,																			Marine,
		Aviation																			Aviation
(In millions, except percentage data)		& Political			Casualty			Energy			Property			Treaty			Total				& Political			Casualty			Energy			Property			Treaty			Total
Gross premiums written	$		80.0	$		71.0	$		39.7	$		23.0	$		176.8	$		390.5		$		85.1	$		53.4	$		41.6	$		23.2	$		150.2	$		353.5
Net premiums written	$		51.5	$		56.3	$		9.8	$		3.4	$		74.9	$		195.9		$		54.1	$		39.5	$		11.9	$		11.2	$		82.7	$		199.4
Net premiums earned	$		63.6	$		57.4	$		29.1	$		10.8	$		60.2	$		221.1		$		60.2	$		44.6	$		34.0	$		12.6	$		59.8	$		211.2
Losses and LAE:
Current accident year, excluding catastrophe losses																		118.0																			107.7
Prior accident year favorable reserve development, excluding catastrophe losses																		(8.7	)																		(2.3	)
Current accident year catastrophe losses																		8.4																			12.7
Prior accident year favorable catastrophe loss development																		(2.7	)																		(5.4	)
Total losses and LAE																		115.0																			112.7
Amortization of deferred acquisition costs and other underwriting expenses																		99.9																			84.7
GAAP underwriting profit																		6.2																			13.8
Net investment income																		16.4																			12.4
Other income																		1.9																			1.1
Other operating expenses																		(1.6	)																		(2.4	)
Operating income before income taxes																$		22.9																	$		24.9
Loss and LAE ratio:
Current accident year, excluding catastrophe losses																		53.3	%																		51.0	%
Prior accident year favorable reserve development, excluding catastrophe losses																		(3.9	)%																		(1.1	)%
Current accident year catastrophe losses																		3.8	%																		6.1	%
Prior accident year favorable catastrophe loss development																		(1.2	)%																		(2.6	)%
Total loss and LAE ratio																		52.0	%																		53.4	%
Expense ratio																		45.2	%																		40.1	%
Combined ratio																		97.2	%																		93.5	%

11

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING INFORMATION AND RELATED RATIOS
	CHAUCER
			Q1				Q2				Q3				Q4				Q1
	(In millions, except percentage data)		2017				2017				2017				2017				2018
	Gross premiums written	$		353.5		$		340.3		$		286.7		$		264.1		$		390.5
	Net premiums written	$		199.4		$		253.6		$		203.5		$		192.6		$		195.9
	Net premiums earned	$		211.2		$		198.7		$		222.5		$		220.6		$		221.1
	Losses and LAE:
	Current accident year, excluding catastrophe losses			107.7				111.7				116.8				116.3				118.0
	Prior accident year favorable reserve development, excluding catastrophe losses			(2.3	)			(15.6	)			(12.5	)			(3.7	)			(8.7	)
	Current accident year catastrophe losses			12.7				2.2				124.9				15.4				8.4
	Prior accident year favorable catastrophe loss development			(5.4	)			(1.0	)			(7.5	)			(10.2	)			(2.7	)
	Total losses and LAE			112.7				97.3				221.7				117.8				115.0
	Amortization of deferred acquisition costs and other underwriting expenses			84.7				83.4				88.5				92.0				99.9
	GAAP underwriting profit (loss)	$		13.8		$		18.0		$		(87.7	)	$		10.8		$		6.2
	Loss and LAE ratio:
	Current accident year, excluding catastrophe losses			51.0	%			56.3	%			52.4	%			52.7	%			53.3	%
	Prior accident year favorable reserve development, excluding catastrophe losses			(1.1	)%			(7.9	)%			(5.6	)%			(1.7	)%			(3.9	)%
	Current accident year catastrophe losses			6.1	%			1.1	%			56.2	%			7.0	%			3.8	%
	Prior accident year favorable catastrophe loss development			(2.6	)%			(0.5	)%			(3.4	)%			(4.6	)%			(1.2	)%
	Total loss and LAE ratio			53.4	%			49.0	%			99.6	%			53.4	%			52.0	%
	Expense ratio			40.1	%			42.0	%			39.8	%			41.7	%			45.2	%
	Combined ratio			93.5	%			91.0	%			139.4	%			95.1	%			97.2	%
	Combined ratio, excluding catastrophe losses			90.0	%			90.4	%			86.6	%			92.7	%			94.6	%
	Current accident year combined ratio, excluding catastrophe losses			91.1	%			98.3	%			92.2	%			94.4	%			98.5	%

12

THE HANOVER INSURANCE GROUP
NET INVESTMENT INCOME AND YIELDS
	Q1			Q2			Q3			Q4			Q1
(In millions, except yields)	2017			2017			2017			2017			2018
Net Investment Income
Fixed maturities	$	60.9		$	61.4		$	62.6		$	64.8		$	64.6
Equity securities		4.3			5.0			4.1			4.6			3.9
Limited partnerships		2.3			3.7			5.8			3.5			7.3
Other investments		6.3			5.1			6.8			7.9			9.7
Investment expenses		(2.7	)		(2.9	)		(2.7	)		(2.7	)		(2.6	)
Total	$	71.1		$	72.3		$	76.6		$	78.1		$	82.9
Pre-tax Yields
Fixed maturities		3.38	%		3.37	%		3.32	%		3.35	%		3.31	%
Total		3.28	%		3.35	%		3.40	%		3.34	%		3.46	%
Pre-tax yields represent annualized net investment income for the period, excluding income on reinsurance contracts subject to deposit accounting, divided by the monthly average invested assets excluding accumulated changes in fair value for fixed maturities and equity securities.

13

THE HANOVER INSURANCE GROUP
INVESTMENT PORTFOLIO
March 31,  2018
(In millions)
												Change in
	Weighted								Net			Net
	Average	Amortized		Fair		% of			Unrealized			Unrealized
Investment Type	Quality	Cost or Cost		Value		Total			Gain (Loss)			YTD
Fixed maturities:
U.S. Treasury and government agencies	AAA	$	546.7	$	536.0		5.8	%	$	(10.7	)	$	(8.5	)
Foreign government	AA+		244.7		244.8		2.6	%		0.1			(1.8	)
Municipals:
Taxable	AA		979.9		990.0		10.7	%		10.1			(12.2	)
Tax-exempt	AA		65.4		65.1		0.7	%		(0.3	)		(0.7	)
Corporate:
NAIC 1	A		1,967.6		1,951.5		21.0	%		(16.1	)		(41.0	)
NAIC 2	BBB		1,958.7		1,942.3		20.9	%		(16.4	)		(47.6	)
NAIC 3 and below	B+		352.7		356.9		3.9	%		4.2			(8.3	)
Total corporate	BBB+		4,279.0		4,250.7		45.8	%		(28.3	)		(96.9	)
Asset-backed:
Residential mortgage-backed	AAA		1,025.6		1,002.4		10.8	%		(23.2	)		(18.6	)
Commercial mortgage-backed	AAA		611.0		603.3		6.5	%		(7.7	)		(12.4	)
Asset-backed	AAA		67.0		66.0		0.7	%		(1.0	)		(0.8	)
Total fixed maturities	A+		7,819.3		7,758.3		83.6	%		(61.0	)		(151.9	)
Equity securities (1)			550.9		550.9		5.9	%		-			(142.8	)
Mortgage and other loans			371.2		371.2		4.0	%		-			-
Other investments (1)			341.5		341.5		3.7	%		-			(3.4	)
Total investments			9,082.9		9,021.9		97.2	%		(61.0	)		(298.1	)
Cash and cash equivalents			258.0		258.0		2.8	%		-			-
Total		$	9,340.9	$	9,279.9		100.0	%	$	(61.0	)	$	(298.1	)
(1) The balance of unrealized was reclassified to retained earnings, net of tax, on January 1, 2018 as a result of implementing FASB's ASU 2016-01, Recognition and Measurement of Financial Instruments. Following the implementation, changes in fair value on these investments are recorded in net income.

14

THE HANOVER INSURANCE GROUP
CREDIT QUALITY AND DURATION OF FIXED MATURITIES
March 31,  2018
(In millions)
CREDIT QUALITY OF FIXED MATURITIES
		Rating Agency	Amortized		Fair		% of Total
	NAIC Designation	Equivalent Designation	Cost		Value		Fair Value
	1	Aaa/Aa/A	$	5,475.8	$	5,427.9		70.0	%
	2	Baa		1,983.1		1,965.8		25.3	%
	3	Ba		189.1		192.6		2.5	%
	4	B		157.0		157.7		2.0	%
	5	Caa and lower		14.0		14.0		0.2	%
	6	In or near default		0.3		0.3		-
Total fixed maturities			$	7,819.3	$	7,758.3		100.0	%
DURATION OF FIXED MATURITIES
			Amortized		Fair		% of Total
			Cost		Value		Fair Value
		0-2 Years	$	1,331.5	$	1,345.4		17.4	%
		2-4 Years		2,223.1		2,234.1		28.8	%
		4-6 Years		2,157.6		2,128.6		27.4	%
		6-8 Years		1,865.3		1,808.9		23.3	%
		8-10 Years		169.4		168.3		2.2	%
		10+ Years		72.4		73.0		0.9	%
		Total fixed maturities	$	7,819.3	$	7,758.3		100.0	%
		Weighted Average Duration		4.3

15

THE HANOVER INSURANCE GROUP
TOP 10 CORPORATE AND MUNICIPAL FIXED MATURITY HOLDINGS
March 31,  2018
(In millions, except percentage data)
Issuer	Amortized Cost		Fair Value		As a Percent of  Invested Assets		S&P Ratings
MetLife	$	29.6	$	29.3	0.32%		A+
Bank of America		28.9		29.3	0.32%		A-
JP Morgan Chase		28.2		27.6		0.30%	A-
US Bancorp		28.0		27.6	0.30%		A
Morgan Stanley		27.6		27.3	0.29%		BBB+
Wells Fargo		27.6		26.9		0.29%	A-
Key Bank		26.3		26.0		0.28%	BBB+
Enterprise Holdings		26.0		25.5	0.27%		A-
PNC Bank		26.0		25.3	0.27%		A
AvalonBay Communities		25.8		25.0	0.27%		A-
Top 10 Corporate and Municipal Fixed	$	274.0	$	269.8	2.91%

16

THE HANOVER INSURANCE GROUP
RECONCILIATION OF OPERATING INCOME TO NET INCOME
	Three Months ended March 31
	2018							2017
(In millions, except per share data)		$			Per Share (Diluted)				$			Per Share (Diluted)
OPERATING INCOME (LOSS)
Commercial Lines	$		61.5					$		37.4
Personal Lines			34.4							9.9
Chaucer			22.9							24.9
Other			(2.2	)						(3.1	)
Total			116.6							69.1
Interest expense			(12.4	)						(12.0	)
Operating income (loss) before income taxes			104.2		$	2.42				57.1		$	1.33
Income tax benefit (expense) on operating income			(20.2	)		(0.47	)			(16.3	)		(0.38	)
Operating income after income taxes			84.0			1.95				40.8			0.95
Non-operating items:
Net realized gains from sales and other			0.3			0.01				3.3			0.07
Net change in fair value of equity securities			(23.0	)		(0.53	)			-
Net other-than-temporary impairment losses on investments        recognized in earnings			(0.7	)		(0.02	)			(1.4	)		(0.03	)
Other			(0.2	)		(0.01	)			-			-
Income tax benefit on non-operating items			7.4			0.17				2.5			0.06
Income (loss) from continuing operations, net of taxes			67.8			1.57				45.2			1.05
Discontinued operations, net of taxes			(0.1	)		-				-			-
NET INCOME (LOSS)	$		67.7		$	1.57		$		45.2		$	1.05

17

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 and combined ratios excluding catastrophe losses (catastrophe losses as discussed here and in all other measures include catastrophe loss development) 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 and unrealized 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 and unrealized investment gains and losses, which, in 2018 also included changes in the fair value of equity securities still held as a result of the implementation of a new accounting standard, 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 fixed maturity investments, net of tax is total shareholders’ equity excluding the after-tax effect of unrealized investment gains and losses on fixed maturities divided by the number of common shares outstanding.  Tangible book value per share is total shareholders' equity, excluding goodwill and intangible assets, divided by the number of common shares outstanding.

The Hanover also provides measures of operating income 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 month ended March 31, 2018 and 2017 is set forth on page 17 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.

18

CORPORATE OFFICES AND							INDUSTRY RATINGS AS OF May 2, 2018				TRANSFER AGENT
PRINCIPAL SUBSIDIARIES
THE HANOVER INSURANCE GROUP, INC.								A.M.	Standard		Computershare Investor Services
440 Lincoln Street							Financial Strength Ratings	Best	& Poor's	Moody's	PO Box 505000
Worcester, MA 01653							The Hanover Insurance				Louisville, KY 40233-5000
							Company	A	A	A3	1-800-317-4454
The Hanover Insurance Company							Citizens Insurance Company
440 Lincoln Street							of America	A	A	-
Worcester, MA 01653
											COMMON STOCK
Citizens Insurance Company of America								A.M.	Standard
808 North Highlander Way							Debt Ratings	Best	& Poor's	Moody's	Common stock of The Hanover Insurance Group is traded
Howell, MI 48843							The Hanover Insurance Group, Inc.				on the New York Stock Exchange under the symbol "THG".
							Senior Debt	bbb	BBB	Baa3
Chaucer Holdings Limited							Subordinated Debentures	bb+	BB+	Ba1
Plantation Place											INQUIRIES
30 Fenchurch Street
London											Oksana Lukasheva
EC3M 3AD											Vice President
											Investor Relations
MARKET AND DIVIDEND INFORMATION											(508) 855-2063
											olukasheva@hanover.com
The following tables set forth the high and low closing
sales prices of our common stock and cash dividends
for the periods indicated:											INVESTOR INFORMATION LINE
Quarter Ended	2018										Dial 1-800-407-5222 to receive additional printed information,
	Price Range				Dividends						fax-on-demand services or other prerecorded messages.
	High		Low		Per Share
March 31	$	120.84	$	106.61	$	0.540					Please visit our internet site at http:// www.Hanover.com
Quarter Ended	2017
	Price Range				Dividends
	High		Low		Per Share
March 31	$	91.58	$	83.09	$	0.500
June 30	$	89.51	$	80.59	$	0.500
September 30	$	99.63	$	87.90	$	0.500
December 31	$	108.85	$	96.87	$	0.540

19