The Hanover Insurance Group, Inc. (THG) 8-K The Hanover Reports Third Quarter Net Income and Enters into a $100 Million Accelerated Share Repurchase Agreement

Exhibit 99.2

FINANCIAL SUPPLEMENT
THIRD QUARTER 2020

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
Investments
Net Investment Income and Yields........................................................................	14
Investment Portfolio................................................................................................	15
Credit Quality and Duration of Fixed Maturities..................................................	16
Top 25 Corporate and Municipal Fixed Maturity Holdings................................	17
Reconciliation of Operating Income to Net Income.............................................	18
Other Information
Non-GAAP Financial Measures...........................................................................	19
Corporate Information............................................................................................	20
Market and Dividend Information..........................................................................	20
Financial Strength and Debt Ratings...................................................................	20

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. Commercial automobile policies are often written in conjunction with other commercial lines.

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 management and professional liability, which covers primarily commercial professional, management and medical liability; marine, which includes inland and ocean marine, and insures businesses against physical losses to property; Hanover Programs, which includes coverage to markets where there are specialty coverage or risk management needs related to groups of similar businesses; specialty industrial and commercial property, which provides insurance to small and medium-sized chemical, paint, solvent and other manufacturing and distribution companies; monoline general liability, which covers bodily injury, property damage and personal injury arising from products sold or accidents occurring on premises or operations; surety, which provides businesses with contract surety coverage in the event of a failure to perform or pay claims and coverage related to fiduciary or regulatory obligations; and other commercial lines, which includes umbrella, fidelity and crime.

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 (excluding flood), 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 and other miscellaneous coverages.

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; holding company and other expenses and a discontinued voluntary property-casualty pools business.

1

THE HANOVER INSURANCE GROUP
FINANCIAL HIGHLIGHTS
		Q3				Q4				Q1				Q2				Q3				Sep-YTD			Sep-YTD
(In millions, except earnings per share)		2019				2019				2020 (1)				2020				2020				2019			2020
PREMIUMS
Gross premiums written	$		1,385.8		$		1,234.9		$		1,288.9		$		1,224.0		$		1,406.1		$		3,883.6	$		3,919.0
Net premiums written			1,242.9				1,103.0				1,136.9				1,081.0				1,268.5				3,478.7			3,486.4
Net premiums earned			1,124.1				1,144.3				1,141.4				1,096.6				1,135.4				3,330.2			3,373.4
EARNINGS
Operating income before interest and taxes	$		126.3		$		110.5		$		117.1		$		88.9		$		128.4		$		343.1	$		334.4
Operating income after taxes			93.0				80.2				86.8				62.7				93.5				251.4			243.0
Income (loss) from continuing operations			111.2				110.2				(38.7	)			115.3				119.5				318.8			196.1
Net income (loss)			118.9				109.8				(40.0	)			115.2				118.9				315.3			194.1
PER SHARE DATA (DILUTED)
Operating income after taxes	$		2.31		$		2.01		$		2.23		$		1.63		$		2.46		$		6.15	$		6.33
Income (loss) from continuing operations			2.77				2.77				(1.01	)			3.01				3.14				7.80			5.11
Net income (loss)			2.96				2.76				(1.04	)			3.01				3.13				7.71			5.05
Dilutive weighted average shares outstanding			40.2				39.8				38.9				38.3				38.0				40.9			38.4
Basic weighted average shares outstanding			39.6				39.2				38.3				38.0				37.7				40.3			38.0
BALANCE SHEET
		September 30				December 31				March 31				June 30				September 30
(In millions, except per share data)		2019				2019				2020				2020				2020
Total assets	$		12,627.2		$		12,490.5		$		12,277.4		$		12,838.6		$		13,393.8
Total loss and loss adjustment expense reserves			5,550.5				5,654.4				5,724.9				5,837.3				5,945.7
Total shareholders' equity			3,086.8				2,916.2				2,736.6				3,071.7				3,155.0
Total shareholders' equity, excluding net unrealized appreciation
(depreciation) on fixed maturity investments, net of tax			2,851.5				2,700.2				2,603.8				2,687.2				2,742.7
Property and Casualty Companies
Statutory surplus	$		2,347.8		$		2,470.2		$		2,420.2		$		2,313.4		$		2,422.3
Premium to surplus ratio		1.93:1				1.85:1				1.91:1				1.98:1				1.90:1
Book value per share	$		78.01		$		75.94		$		72.05		$		81.10		$		84.32
Book value per share, excluding net unrealized appreciation
(depreciation) on fixed maturity investments, net of tax	$		72.06		$		70.32		$		68.55		$		70.95		$		73.30
Tangible book value per share (total book value excluding goodwill
and intangibles)	$		72.94		$		70.74		$		66.81		$		75.86		$		79.03
Shares outstanding			39.6				38.4				38.0				37.9				37.4
Total debt/equity			21.6	%			22.4	%			25.9	%			21.3	%			24.7	%
Total debt/total capital			17.8	%			18.3	%			20.5	%			17.5	%			19.8	%

(1) Operating income per share metrics are calculated using diluted shares outstanding. Income (loss) from continuing operations and net income (loss) per share metrics are calculated using basic shares outstanding due to antidilution.

2

THE HANOVER INSURANCE GROUP
CONSOLIDATED INCOME STATEMENTS
	Three Months ended September 30											Nine Months ended September 30
(In millions)		2020				2019			% Change				2020				2019			% Change
REVENUES
Premiums earned	$		1,135.4		$		1,124.1			1.0		$		3,373.4		$		3,330.2			1.3
Net investment income			67.6				68.8			(1.7	)			194.9				208.6			(6.6	)
Net realized and unrealized investment gains (losses):
Net realized gains from sales and other			8.2				0.6	��	N/M					12.1				1.0		N/M
Net change in fair value of equity securities			30.3				15.0		N/M					(44.4	)			75.3		N/M
Impairment losses on investments			(0.8	)			(0.8	)	N/M					(27.9	)			(1.2	)	N/M
Total net realized and unrealized investment gains (losses)			37.7				14.8		N/M					(60.2	)			75.1		N/M
Fees and other income			9.1				7.0			30.0				22.2				18.9			17.5
Total revenues			1,249.8				1,214.7			2.9				3,530.3				3,632.8			(2.8	)
LOSSES AND EXPENSES
Losses and loss adjustment expenses			709.7				705.3			0.6				2,149.9				2,122.6			1.3
Amortization of deferred acquisition costs			237.7				232.8			2.1				711.9				692.8			2.8
Interest expense			9.8				9.4			4.3				28.6				28.1			1.8
Loss from repayment of debt			6.1				-		N/M					6.2				-		N/M
Other operating expenses			137.9				136.9			0.7				395.9				400.6			(1.2	)
Total losses and expenses			1,101.2				1,084.4			1.5				3,292.5				3,244.1			1.5
Income from continuing operations before income taxes			148.6				130.3			14.0				237.8				388.7			(38.8	)
Income tax expense			29.1				23.5			23.8				41.7				68.7			(39.3	)
Effect of new tax regulations on Chaucer gain on sale			-				(4.4	)		(100.0	)			-				1.2			(100.0	)
		\
Income from continuing operations			119.5				111.2			7.5				196.1				318.8			(38.5	)
Discontinued operations (net of taxes):
									-
Sale of Chaucer business			-				6.4			(100.0	)			-				(2.6	)		(100.0	)
Income from Chaucer business			-				2.1			(100.0	)	��		-				1.6			(100.0	)
Loss from discontinued life businesses			(0.6	)			(0.8	)		(25.0	)			(2.0	)			(2.5	)		(20.0	)
Net income	$		118.9		$		118.9		-			$		194.1		$		315.3			(38.4	)

3

THE HANOVER INSURANCE GROUP
CONSOLIDATED BALANCE SHEETS
		September 30				December 31
(In millions, except per share data)		2020				2019			% Change
ASSETS
Investments:
Fixed maturities, at fair value (amortized cost of $6,984.7 and $6,452.2)	$		7,473.0		$		6,687.1			11.8
Equity securities, at fair value			490.5				575.7			(14.8	)
Other investments			763.9				733.2			4.2
Total investments			8,727.4				7,996.0			9.1
Cash and cash equivalents			231.5				215.7			7.3
Accrued investment income			50.3				53.0			(5.1	)
Premiums and accounts receivable, net			1,353.0				1,260.4			7.3
Reinsurance recoverable on paid and unpaid losses and unearned premiums			1,841.1				1,814.0			1.5
Deferred acquisition costs			482.5				467.4			3.2
Goodwill			178.8				178.8		-
Other assets			419.7				402.4			4.3
Assets of discontinued businesses			109.5				102.8			6.5
Total assets	$		13,393.8		$		12,490.5			7.2
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Loss and loss adjustment expense reserves	$		5,945.7		$		5,654.4			5.2
Unearned premiums			2,537.1				2,416.7			5.0
Expenses and taxes payable			704.8				627.7			12.3
Deferred income tax liability			84.6				51.8			63.3
Reinsurance premiums payable			67.3				53.4			26.0
Debt			780.4				653.4			19.4
Liabilities of discontinued businesses			118.9				116.9			1.7
Total liabilities			10,238.8				9,574.3			6.9
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			1,871.5				1,837.3			1.9
Accumulated other comprehensive income			352.4				152.6		N/M
Retained earnings			2,529.2				2,410.9			4.9
Treasury stock at cost (23.1 million and 22.1 million shares)			(1,598.7	)			(1,485.2	)		7.6
Total shareholders' equity			3,155.0				2,916.2			8.2
Total liabilities and shareholders' equity	$		13,393.8		$		12,490.5			7.2

4

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
CONSOLIDATED
Three Months ended September 30
		2020																2019
		Commercial				Personal												Commercial				Personal
(In millions, except percentage data)		Lines				Lines				Other				Total				Lines				Lines				Other				Total
Gross premiums written	$		884.7		$		521.4		$		-		$		1,406.1		$		858.2		$		527.6		$		-		$		1,385.8
Net premiums written	$		760.5		$		508.0		$		-		$		1,268.5		$		746.4		$		496.5		$		-		$		1,242.9
Net premiums earned	$		665.1		$		470.3		$		-		$		1,135.4		$		663.5		$		460.6		$		-		$		1,124.1
Losses and LAE:
Current accident year, excluding catastrophe losses			385.1				260.6				-				645.7				385.0				284.7				0.1				669.8
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			(3.9	)			1.0				0.3				(2.6	)			(5.6	)			5.6				0.3				0.3
Current accident year catastrophe losses			42.5				33.0				-				75.5				21.3				13.9				-				35.2
Prior accident year unfavorable (favorable) catastrophe loss development			(8.9	)			(0.7	)			-				(9.6	)			0.7				(0.7	)			-				-
Total losses and LAE			414.8				293.9				0.3				709.0				401.4				303.5				0.4				705.3
Amortization of deferred acquisition costs and other underwriting expenses			231.6				133.4				-				365.0				231.7				128.3				-				360.0
											-
GAAP underwriting profit (loss)			18.7				43.0				(0.3	)			61.4				30.4				28.8				(0.4	)			58.8
											-
Net investment income			44.4				19.5				3.7				67.6				44.1				19.6				5.1				68.8
Other income			3.8				3.5				1.8				9.1				2.7				3.1				1.2				7.0
Other operating expenses			(4.6	)			(1.8	)			(3.3	)			(9.7	)			(3.1	)			(1.3	)			(3.9	)			(8.3	)
Operating income before income taxes	$		62.3		$		64.2		$		1.9		$		128.4		$		74.1		$		50.2		$		2.0		$		126.3
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			57.9	%			55.4	%		N/M					56.8	%			58.0	%			61.8	%		N/M					59.6	%
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			(0.6	)%			0.2	%		N/M					(0.2	)%			(0.8	)%			1.2	%		N/M					-
Current accident year catastrophe losses			6.4	%			7.0	%		N/M					6.6	%			3.2	%			3.1	%		N/M					3.1	%
Prior accident year unfavorable (favorable) catastrophe loss development			(1.3	)%			(0.1	)%		N/M					(0.8	)%			0.1	%			(0.2	)%		N/M					-
Total loss and LAE ratio			62.4	%			62.5	%		N/M					62.4	%			60.5	%			65.9	%		N/M					62.7	%
Expense ratio			34.5	%			27.9	%		N/M					31.8	%			34.7	%			27.4	%		N/M					31.7	%
Combined ratio			96.9	%			90.4	%		N/M					94.2	%			95.2	%			93.3	%		N/M					94.4	%

5

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
CONSOLIDATED
Nine Months ended September 30
		2020																2019
		Commercial				Personal												Commercial				Personal
(In millions, except percentage data)		Lines				Lines				Other				Total				Lines				Lines				Other					Total
Gross premiums written	$		2,441.6		$		1,477.4		$		-		$		3,919.0		$		2,387.2		$		1,496.4		$		-			$		3,883.6
Net premiums written	$		2,083.0		$		1,403.4		$		-		$		3,486.4		$		2,068.5		$		1,410.2		$		-			$		3,478.7
Net premiums earned	$		1,999.6		$		1,373.8		$		-		$		3,373.4		$		1,974.7		$		1,355.5		$		-			$		3,330.2
Losses and LAE:
Current accident year, excluding catastrophe losses			1,148.6				758.4				0.1				1,907.1				1,151.7				836.4				0.1					1,988.2
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			(12.7	)			(0.7	)			3.9				(9.5	)			(17.1	)			16.4				0.9					0.2
Current accident year catastrophe losses			140.4				127.8				-				268.2				73.5				81.2				-					154.7
Prior accident year unfavorable (favorable) catastrophe loss development			(18.2	)			1.6				-				(16.6	)			(18.1	)			(2.4	)			-					(20.5	)
Total losses and LAE			1,258.1				887.1				4.0				2,149.2				1,190.0				931.6				1.0					2,122.6
Amortization of deferred acquisition costs and other underwriting expenses			691.1				382.2				-				1,073.3				688.5				378.5				-					1,067.0
											-
GAAP underwriting profit (loss)			50.4				104.5				(4.0	)			150.9				96.2				45.4				(1.0	)				140.6
Net investment income			128.7				56.3				9.9				194.9				132.8				59.0				16.8					208.6
Other income			8.6				8.0				5.6				22.2				6.7				8.6				3.6					18.9
Other operating expenses			(15.5	)			(7.1	)			(11.0	)			(33.6	)			(8.6	)			(4.3	)			(12.1	)				(25.0	)
Operating income before income taxes	$		172.2		$		161.7		$		0.5		$		334.4		$		227.1		$		108.7		$		7.3			$		343.1
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			57.4	%			55.3	%		N/M					56.5	%			58.4	%			61.7	%		N/M						59.7	%
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			(0.6	)%			(0.1	)%		N/M					(0.3	)%			(0.9	)%			1.2	%		N/M						-
																													######
Current accident year catastrophe losses			7.0	%			9.3	%		N/M					8.0	%			3.7	%			6.0	%		N/M						4.6	%
Prior accident year unfavorable (favorable) catastrophe loss development			(0.9	)%			0.1	%		N/M					(0.5	)%			(0.9	)%			(0.2	)%		N/M						(0.6	)%
Total loss and LAE ratio			62.9	%			64.6	%		N/M					63.7	%			60.3	%			68.7	%		N/M						63.7	%
Expense ratio			34.3	%			27.4	%		N/M					31.5	%			34.7	%			27.4	%		N/M						31.7	%
Combined ratio			97.2	%			92.0	%		N/M					95.2	%			95.0	%			96.1	%		N/M						95.4	%

6

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING INFORMATION AND RELATED RATIOS
CONSOLIDATED
		Q3				Q4				Q1				Q2				Q3				Sep-YTD				Sep-YTD
(In millions, except percentage data)		2019				2019				2020				2020				2020				2019				2020
Gross premiums written	$		1,385.8		$		1,234.9		$		1,288.9		$		1,224.0		$		1,406.1		$		3,883.6		$		3,919.0
Net premiums written	$		1,242.9		$		1,103.0		$		1,136.9		$		1,081.0		$		1,268.5		$		3,478.7		$		3,486.4
Net premiums earned	$		1,124.1		$		1,144.3		$		1,141.4		$		1,096.6		$		1,135.4		$		3,330.2		$		3,373.4
Losses and LAE:
Current accident year, excluding catastrophe losses			669.8				708.0				692.3				569.1				645.7				1,988.2				1,907.1
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			0.3				(1.1	)			(2.0	)			(4.9	)			(2.6	)			0.2				(9.5	)
Current accident year catastrophe losses			35.2				42.1				37.9				154.8				75.5				154.7				268.2
Prior accident year favorable catastrophe loss development			-				(7.0	)			-				(7.0	)			(9.6	)			(20.5	)			(16.6	)
Total losses and LAE			705.3				742.0				728.2				712.0				709.0				2,122.6				2,149.2
Amortization of deferred acquisition costs and other underwriting expenses			360.0				363.6				362.0				346.3				365.0				1,067.0				1,073.3
GAAP underwriting profit	$		58.8		$		38.7		$		51.2		$		38.3		$		61.4		$		140.6		$		150.9
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			59.6	%			61.8	%			60.7	%			51.8	%			56.8	%			59.7	%			56.5	%
Prior accident year favorable reserve development, excluding catastrophe losses			-				(0.1	)%			(0.2	)%			(0.4	)%			(0.2	)%			-				(0.3	)%
Current accident year catastrophe losses			3.1	%			3.7	%			3.3	%			14.1	%			6.6	%			4.6	%			8.0	%
Prior accident year favorable catastrophe loss development			-				(0.6	)%			-				(0.6	)%			(0.8	)%			(0.6	)%			(0.5	)%
Total loss and LAE ratio			62.7	%			64.8	%			63.8	%			64.9	%			62.4	%			63.7	%			63.7	%
Expense ratio			31.7	%			31.4	%			31.4	%			31.3	%			31.8	%			31.7	%			31.5	%
Combined ratio			94.4	%			96.2	%			95.2	%			96.2	%			94.2	%			95.4	%			95.2	%
Combined ratio, excluding catastrophe losses			91.3	%			93.1	%			91.9	%			82.7	%			88.4	%			91.4	%			87.7	%
Current accident year combined ratio, excluding catastrophe losses			91.3	%			93.2	%			92.1	%			83.1	%			88.6	%			91.4	%			88.0	%

7

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
COMMERCIAL LINES
Three Months ended September 30
	2020																				2019
		Multiple								Workers'												Multiple								Workers'
(In millions, except percentage data)		Peril				Auto				Comp				Other				Total				Peril				Auto				Comp				Other				Total
Net premiums written	$		273.4		$		88.8		$		79.0		$		319.3		$		760.5		$		265.2		$		92.4		$		82.7		$		306.1		$		746.4
Net premiums earned	$		227.0		$		82.5		$		76.4		$		279.2		$		665.1		$		221.7		$		84.3		$		79.4		$		278.1		$		663.5
Losses and LAE:
Current accident year, excluding catastrophe losses			134.1				53.1				46.8				151.1				385.1				125.3				57.0				48.6				154.1				385.0
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			6.4				2.0				(9.8	)			(2.5	)			(3.9	)			(0.3	)			1.0				(5.0	)			(1.3	)			(5.6	)
Current accident year catastrophe losses			21.4				0.7				-				20.4				42.5				17.2				0.4				-				3.7				21.3
Prior accident year unfavorable (favorable) catastrophe loss development			(6.5	)			(0.1	)			-				(2.3	)			(8.9	)			(0.9	)			(0.1	)			-				1.7				0.7
Total losses and LAE			155.4				55.7				37.0				166.7				414.8				141.3				58.3				43.6				158.2				401.4
Amortization of deferred acquisition costs and other underwriting expenses																			231.6																				231.7
GAAP underwriting profit																			18.7																				30.4
Net investment income																			44.4																				44.1
Other income																			3.8																				2.7
Other operating expenses																			(4.6	)																			(3.1	)
Operating income before income taxes																	$		62.3																		$		74.1
																														.
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			59.1	%			64.4	%			61.2	%			54.1	%			57.9	%			56.4	%			67.6	%			61.2	%			55.5	%			58.0	%
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			2.8	%			2.4	%			(12.8	)%			(0.9	)%			(0.6	)%			(0.1	)%			1.2	%			(6.3	)%			(0.5	)%			(0.8	)%
Current accident year catastrophe losses			9.5	%			0.8	%			-				7.3	%			6.4	%			7.8	%			0.5	%			-				1.3	%			3.2	%
Prior accident year unfavorable (favorable) catastrophe loss development			(2.9	)%			(0.1	)%			-				(0.8	)%			(1.3	)%			(0.4	)%			(0.1	)%			-				0.6	%			0.1	%
Total loss and LAE ratio			68.5	%			67.5	%			48.4	%			59.7	%			62.4	%			63.7	%			69.2	%			54.9	%			56.9	%			60.5	%
Expense ratio																			34.5	%																			34.7	%
Combined ratio																			96.9	%																			95.2	%
Change in policies in force			1.8	%			(8.4	)%			8.1	%			0.3	%			1.2	%			6.7	%			(16.3	)%			10.3	%			1.4	%			2.5	%
Retention			89.1	%			82.5	%			84.3	%		N/M					87.1	%			87.0	%			75.8	%			82.0	%		N/M					84.1	%

8

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
COMMERCIAL LINES
Nine Months ended September 30
	2020																				2019
		Multiple								Workers'												Multiple								Workers'
(In millions, except percentage data)		Peril				Auto				Comp				Other				Total				Peril				Auto				Comp				Other				Total
Net premiums written	$		712.6		$		256.4		$		241.1		$		872.9		$		2,083.0		$		699.5		$		256.1		$		254.7		$		858.2		$		2,068.5
Net premiums earned	$		678.9		$		250.8		$		233.3		$		836.6		$		1,999.6		$		660.0		$		253.8		$		239.6		$		821.3		$		1,974.7
Losses and LAE:
Current accident year, excluding catastrophe losses			394.9				159.2				142.5				452.0				1,148.6				369.8				175.2				145.3				461.4				1,151.7
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			13.3				10.7				(25.6	)			(11.1	)			(12.7	)			(5.3	)			5.0				(15.7	)			(1.1	)			(17.1	)
Current accident year catastrophe losses			95.6				1.5				-				43.3				140.4				53.3				1.7				-				18.5				73.5
Prior accident year favorable catastrophe loss development			(14.3	)			(0.1	)		-					(3.8	)			(18.2	)			(11.5	)			(0.4	)		-					(6.2	)			(18.1	)
Total losses and LAE			489.5				171.3				116.9				480.4				1,258.1				406.3				181.5				129.6				472.6				1,190.0
Amortization of deferred acquisition costs and other underwriting expenses																			691.1																				688.5
GAAP underwriting profit																			50.4																				96.2
Net investment income																			128.7																				132.8
Other income																			8.6																				6.7
Other operating expenses																			(15.5	)																			(8.6	)
Operating income before income taxes																	$		172.2																		$		227.1
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			58.1	%			63.4	%			61.1	%			54.0	%			57.4	%			56.1	%			69.0	%			60.7	%			56.1	%			58.4	%
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			2.0	%			4.3	%			(11.0	)%			(1.3	)%			(0.6	)%			(0.8	)%			2.0	%			(6.6	)%			(0.1	)%			(0.9	)%
Current accident year catastrophe losses			14.1	%			0.6	%			-				5.2	%			7.0	%			8.0	%			0.7	%			-				2.3	%			3.7	%
Prior accident year favorable catastrophe loss development			(2.1	)%			-				-				(0.5	)%			(0.9	)%			(1.7	)%			(0.2	)%			-				(0.8	)%			(0.9	)%
Total loss and LAE ratio			72.1	%			68.3	%			50.1	%			57.4	%			62.9	%			61.6	%			71.5	%			54.1	%			57.5	%			60.3	%
Expense ratio																			34.3	%																			34.7	%
Combined ratio																			97.2	%																			95.0	%
Change in policies in force			1.8	%			(8.4	)%			8.1	%			0.3	%			1.2	%			6.7	%			(16.3	)%			10.3	%			1.4	%			2.5	%
Retention			88.7	%			82.0	%			82.9	%		N/M					86.4	%			86.0	%			76.3	%			81.6	%		N/M					83.2	%

9

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING INFORMATION AND RELATED RATIOS
COMMERCIAL LINES
		Q3				Q4				Q1				Q2				Q3				Sep-YTD				Sep-YTD
(In millions, except percentage data)		2019				2019				2020				2020				2020				2019				2020
Gross premiums written	$		858.2		$		740.1		$		830.5		$		726.4		$		884.7		$		2,387.2		$		2,441.6
Net premiums written	$		746.4		$		638.7		$		707.6		$		614.9		$		760.5		$		2,068.5		$		2,083.0
Net premiums earned	$		663.5		$		679.5		$		675.9		$		658.6		$		665.1		$		1,974.7		$		1,999.6
Losses and LAE:
Current accident year, excluding catastrophe losses			385.0				403.4				413.7				349.8				385.1				1,151.7				1,148.6
Prior accident year favorable reserve development, excluding catastrophe losses			(5.6	)			(11.6	)			(3.7	)			(5.1	)			(3.9	)			(17.1	)			(12.7	)
Current accident year catastrophe losses			21.3				34.3				27.1				70.8				42.5				73.5				140.4
Prior accident year unfavorable (favorable) catastrophe loss development			0.7				(6.5	)			(3.3	)			(6.0	)			(8.9	)			(18.1	)			(18.2	)
Total losses and LAE			401.4				419.6				433.8				409.5				414.8				1,190.0				1,258.1
Amortization of deferred acquisition costs and other underwriting expenses			231.7				234.6				231.7				227.8				231.6				688.5				691.1
			-
GAAP underwriting profit	$		30.4		$		25.3		$		10.4		$		21.3		$		18.7		$		96.2		$		50.4
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			58.0	%			59.4	%			61.2	%			53.2	%			57.9	%			58.4	%			57.4	%
Prior accident year favorable reserve development, excluding catastrophe losses			(0.8	)%			(1.7	)%			(0.5	)%			(0.8	)%			(0.6	)%			(0.9	)%			(0.6	)%
Current accident year catastrophe losses			3.2	%			5.1	%			4.0	%			10.7	%			6.4	%			3.7	%			7.0	%
Prior accident year unfavorable (favorable) catastrophe loss development			0.1	%			(1.0	)%			(0.5	)%			(0.9	)%			(1.3	)%			(0.9	)%			(0.9	)%
Total loss and LAE ratio			60.5	%			61.8	%			64.2	%			62.2	%			62.4	%			60.3	%			62.9	%
Expense ratio			34.7	%			34.3	%			34.0	%			34.4	%			34.5	%			34.7	%			34.3	%
Combined ratio			95.2	%			96.1	%			98.2	%			96.6	%			96.9	%			95.0	%			97.2	%
Combined ratio, excluding catastrophe losses			91.9	%			92.0	%			94.7	%			86.8	%			91.8	%			92.2	%			91.1	%
Current accident year combined ratio, excluding catastrophe losses			92.7	%			93.7	%			95.2	%			87.6	%			92.4	%			93.1	%			91.7	%

10

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
PERSONAL LINES
Three Months ended September 30
	2020																2019
(In millions, except percentage data)		Auto				Home				Other				Total				Auto				Home				Other				Total
Net premiums written	$		311.6		$		179.7		$		16.7		$		508.0		$		308.2		$		174.3		$		14.0		$		496.5
Net premiums earned	$		295.2		$		161.0		$		14.1		$		470.3		$		292.0		$		156.7		$		11.9		$		460.6
Losses and LAE:
Current accident year, excluding catastrophe losses			177.6				77.7				5.3				260.6				203.7				75.8				5.2				284.7
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			(0.1	)			2.5				(1.4	)			1.0				4.7				1.7				(0.8	)			5.6
Current accident year catastrophe losses			3.2				29.6				0.2				33.0				1.6				11.7				0.6				13.9
Prior accident year favorable catastrophe loss development			-				(0.7	)			-				(0.7	)			(0.1	)			(0.6	)			-				(0.7	)
Total losses and LAE			180.7				109.1				4.1				293.9				209.9				88.6				5.0				303.5
Amortization of deferred acquisition costs and other underwriting expenses															133.4																128.3
GAAP underwriting profit															43.0																28.8
Net investment income															19.5																19.6
Other income															3.5																3.1
Other operating expenses															(1.8	)															(1.3	)
Operating income before income taxes													$		64.2														$		50.2
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			60.1	%			48.2	%			37.6	%			55.4	%			69.8	%			48.3	%			43.7	%			61.8	%
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			-				1.6	%			(9.9	)%			0.2	%			1.6	%			1.1	%			(6.7	)%			1.2	%
Current accident year catastrophe losses			1.1	%			18.4	%			1.4	%			7.0	%			0.5	%			7.5	%			5.0	%			3.1	%
Prior accident year favorable catastrophe loss development			-				(0.4	)%			-				(0.1	)%			-				(0.4	)%			-				(0.2	)%
Total loss and LAE ratio			61.2	%			67.8	%			29.1	%			62.5	%			71.9	%			56.5	%			42.0	%			65.9	%
Expense ratio															27.9	%															27.4	%
Combined ratio															90.4	%															93.3	%
Change in policies in force			(1.7	)%			(0.2	)%			46.4	%			1.4	%			1.9	%			2.4	%			61.9	%			4.1	%
										.
Retention			78.9	%			79.2	%		N/M					79.4	%			82.9	%			82.4	%		N/M					82.8	%

11

THE HANOVER INSURANCE GROUP
GAAP UNDERWRITING AND OPERATING INCOME INFORMATION AND RATIOS
PERSONAL LINES
Nine Months ended September 30
	2020																2019
(In millions, except percentage data)		Auto				Home				Other				Total				Auto				Home				Other				Total
Net premiums written	$		867.8		$		491.0		$		44.6		$		1,403.4		$		895.3		$		477.0		$		37.9		$		1,410.2
Net premiums earned	$		852.4		$		480.9		$		40.5		$		1,373.8		$		858.7		$		462.7		$		34.1		$		1,355.5
Losses and LAE:
Current accident year, excluding catastrophe losses			506.0				237.6				14.8				758.4				599.3				223.3				13.8				836.4
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			2.8				0.5				(4.0	)			(0.7	)			13.9				2.7				(0.2	)			16.4
Current accident year catastrophe losses			9.2				117.6				1.0				127.8				4.5				75.5				1.2				81.2
Prior accident year unfavorable (favorable) catastrophe loss development			0.8				0.7				0.1				1.6				(0.2	)			(2.2	)			-				(2.4	)
Total losses and LAE			518.8				356.4				11.9				887.1				617.5				299.3				14.8				931.6
Amortization of deferred acquisition costs and other underwriting expenses															382.2																378.5
GAAP underwriting profit															104.5																45.4
Net investment income															56.3																59.0
Other income															8.0																8.6
Other operating expenses															(7.1	)															(4.3	)
Operating income before income taxes													$		161.7														$		108.7
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			59.4	%			49.4	%			36.6	%			55.3	%			69.8	%			48.3	%			40.5	%			61.7	%
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			0.3	%			0.1	%			(9.9	)%			(0.1	)%			1.6	%			0.6	%			(0.6	)%			1.2	%
Current accident year catastrophe losses			1.1	%			24.5	%			2.5	%			9.3	%			0.5	%			16.3	%			3.5	%			6.0	%
Prior accident year unfavorable (favorable) catastrophe loss development			0.1	%			0.1	%			0.2	%			0.1	%			-				(0.5	)%			-				(0.2	)%
Total loss and LAE ratio			60.9	%			74.1	%			29.4	%			64.6	%			71.9	%			64.7	%			43.4	%			68.7	%
Expense ratio															27.4	%															27.4	%
Combined ratio															92.0	%															96.1	%
Change in policies in force			(1.7	)%			(0.2	)%			46.4	%			1.4	%			1.9	%			2.4	%			61.9	%			4.1	%
Retention			81.9	%			81.3	%		N/M					81.9	%			83.7	%			82.8	%		N/M					83.4	%

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)		2019				2019				2020				2020				2020				2019				2020
Gross premiums written	$		527.6		$		494.8		$		458.4		$		497.6		$		521.4		$		1,496.4		$		1,477.4
Net premiums written	$		496.5		$		464.3		$		429.3		$		466.1		$		508.0		$		1,410.2		$		1,403.4
Net premiums earned	$		460.6		$		464.8		$		465.5		$		438.0		$		470.3		$		1,355.5		$		1,373.8
Losses and LAE:
Current accident year, excluding catastrophe losses			284.7				304.6				278.6				219.2				260.6				836.4				758.4
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			5.6				10.2				(1.6	)			(0.1	)			1.0				16.4				(0.7	)
Current accident year catastrophe losses			13.9				7.8				10.8				84.0				33.0				81.2				127.8
Prior accident year unfavorable (favorable) catastrophe loss development			(0.7	)			(0.5	)			3.3				(1.0	)			(0.7	)			(2.4	)			1.6
Total losses and LAE			303.5				322.1				291.1				302.1				293.9				931.6				887.1
Amortization of deferred acquisition costs and other underwriting expenses			128.3				129.0				130.3				118.5				133.4				378.5				382.2
GAAP underwriting profit	$		28.8		$		13.7		$		44.1		$		17.4		$		43.0		$		45.4		$		104.5
Loss and LAE ratio:
Current accident year, excluding catastrophe losses			61.8	%			65.5	%			59.8	%			50.1	%			55.4	%			61.7	%			55.3	%
Prior accident year unfavorable (favorable) reserve development, excluding catastrophe losses			1.2	%			2.2	%			(0.3	)%			-				0.2	%			1.2	%			(0.1	)%
Current accident year catastrophe losses			3.1	%			1.7	%			2.3	%			19.1	%			7.0	%			6.0	%			9.3	%
Prior accident year unfavorable (favorable) catastrophe loss development			(0.2	)%			(0.1	)%			0.7	%			(0.2	)%			(0.1	)%			(0.2	)%			0.1	%
Total loss and LAE ratio			65.9	%			69.3	%			62.5	%			69.0	%			62.5	%			68.7	%			64.6	%
Expense ratio			27.4	%			27.2	%			27.5	%			26.7	%			27.9	%			27.4	%			27.4	%
Combined ratio			93.3	%			96.5	%			90.0	%			95.7	%			90.4	%			96.1	%			92.0	%
Combined ratio, excluding catastrophe losses			90.4	%			94.9	%			87.0	%			76.8	%			83.5	%			90.3	%			82.6	%
Current accident year combined ratio, excluding catastrophe losses			89.2	%			92.7	%			87.3	%			76.8	%			83.3	%			89.1	%			82.7	%

13

THE HANOVER INSURANCE GROUP
NET INVESTMENT INCOME AND YIELDS
		Q3			Q4			Q1			Q2			Q3			YTD			YTD
(In millions, except yields)		2019			2019			2020			2020			2020			2019			2020
Net Investment Income
Fixed maturities		$	58.1		$	58.5		$	56.2		$	56.2		$	55.3		$	173.9		$	167.7
Mortgage loans			4.1			4.3			4.3			4.3			4.5			12.0			13.1
Equity securities			4.0			4.7			3.8			3.6			3.4			11.6			10.8
Limited partnerships			3.8			6.6			6.6			(4.6	)		6.0			13.1			8.0
Other investments			1.0			1.1			0.9			0.8			0.7			4.2			2.4
Investment expenses			(2.2	)		(2.5	)		(2.2	)		(2.6	)		(2.3	)		(6.2	)		(7.1	)
Total		$	68.8		$	72.7		$	69.6		$	57.7		$	67.6		$	208.6		$	194.9
Pre-tax Yields
Fixed maturities			3.55	%		3.56	%		3.45	%		3.45	%		3.26	%		3.57	%		3.38	%
Total			3.57	%		3.72	%		3.60	%		2.99	%		3.37	%		3.62	%		3.32	%
	Pre-tax yields represent annualized net investment income for the period divided by the monthly average invested assets at amortized cost, which excludes accumulated changes in fair value for fixed maturities and equity securities.

14

	THE HANOVER INSURANCE GROUP
	INVESTMENT PORTFOLIO
	September 30, 2020
(In millions)
												Change in			Change in
		Weighted	Amortized							Net		Net			Net
		Average	Cost		Fair Value /		% of			Unrealized		Unrealized			Unrealized
Investment Type		Quality	or Cost (1)		Carry Value		Total			Gain		During Q3			YTD
Fixed maturities:
U.S. Treasury and government agencies		AAA	$	353.9	$	373.6		4.2	%	$	19.7	$	(0.4	)	$	11.9
Foreign government		A		4.2		4.7		0.1	%		0.5		-			0.1
Municipals:
Taxable		AA		993.5		1,050.9		11.7	%		57.4		8.9			32.2
Tax-exempt		AA		39.8		41.4		0.5	%		1.6		-			0.4
Corporate:
NAIC 1		A		1,508.9		1,646.9		18.4	%		138.0		1.2			64.7
NAIC 2		BBB		2,013.6		2,177.8		24.3	%		164.2		18.3			92.6
NAIC 3 and below		B+		284.6		297.0		3.3	%		12.4		5.5			(0.4	)
Total corporate		BBB+		3,807.1		4,121.7		46.0	%		314.6		25.0			156.9
Asset-backed:
Residential mortgage-backed		AAA		1,017.8		1,056.0		11.8	%		38.2		(4.0	)		22.2
Commercial mortgage-backed		AAA		695.6		749.1		8.3	%		53.5		6.6			28.0
Asset-backed		AA		72.8		75.6		0.8	%		2.8		0.7			1.7
Total fixed maturities		A+		6,984.7		7,473.0		83.4	%		488.3		36.8			253.4
Equity securities				490.5		490.5		5.5	%		-		-			-
Mortgage and other loans				457.2		457.2		5.1	%		-		-			-
Other investments				306.7		306.7		3.4	%		-		-			-
Total investments				8,239.1		8,727.4		97.4	%		488.3		36.8			253.4
Cash and cash equivalents				231.5		231.5		2.6	%		-		-			-
Total			$	8,470.6	$	8,958.9		100.0	%	$	488.3	$	36.8		$	253.4
(1) Net of allowance for credit losses of $9.4 million.

15

THE HANOVER INSURANCE GROUP
CREDIT QUALITY AND DURATION OF FIXED MATURITIES
September 30, 2020
(In millions)
CREDIT QUALITY OF FIXED MATURITIES
		Rating Agency		Amortized			Fair		% of Total
NAIC Designation		Equivalent Designation		Cost (1)			Value		Fair Value
1		Aaa/Aa/A	$		4,656.1	$		4,966.1		66.4	%
2		Baa			2,043.7			2,209.1		29.6	%
3		Ba			157.0			163.3		2.2	%
4		B			120.4			125.9		1.7	%
5		Caa and lower			7.1			7.1		0.1	%
6		In or near default			0.4			1.5		0.0	%
Total fixed maturities			$		6,984.7	$		7,473.0		100.0	%
DURATION OF FIXED MATURITIES
				Amortized			Fair		% of Total
				Cost (1)			Value		Fair Value
	0-2 Years		$		1,595.8	$		1,650.2		22.1	%
	2-4 Years				1,624.9			1,733.8		23.2	%
	4-6 Years				1,701.5			1,867.6		25.0	%
	6-8 Years				1,060.7			1,174.2		15.7	%
	8-10 Years				743.7			773.4		10.3	%
	10+ Years				258.1			273.8		3.7	%
Total fixed maturities			$		6,984.7	$		7,473.0		100.0	%
Weighted Average Duration					4.7
(1) Net of allowance for credit losses of $1.6 million.

16

THE HANOVER INSURANCE GROUP
TOP 25 CORPORATE AND MUNICIPAL FIXED MATURITY HOLDINGS
September 30, 2020
(In millions, except percentage data)
Issuer	Amortized Cost		Fair Value		As a Percent of Invested Assets	Ratings (1)
State of Ohio	$	34.2	$	35.1	0.39%	AA+
Truist Financial		32.6		35.6	0.40%	A-
AbbVie		29.9		32.1	0.36%	BBB+
Minnesota Housing Finance Agency		29.7		30.2	0.34%	AA+
Massachusetts School Building Authority		29.5		30.3	0.34%	AA+
Bank of America		26.3		29.3	0.33%	A-
PNC Bank		26.1		28.7	0.32%	A
State of Oregon		25.8		26.8	0.30%	AA+
US Bancorp		24.7		27.4	0.31%	A
National Grid		24.1		26.4	0.29%	A-
Dominion Energy		24.1		26.6	0.30%	BBB+
Westpac Banking		23.5		25.6	0.29%	A+
District of Columbia		23.0		23.0	0.26%	AAA
Sumitomo Mitsui Financial		23.0		24.5	0.27%	A-
MassMutual Global Funding II		22.4		24.7	0.27%	AA+
Goldman Sachs		22.4		24.9	0.28%	BBB
JP Morgan Chase		22.2		24.3	0.27%	A-
AvalonBay Communities		22.0		23.8	0.26%	A-
National Australia Bank		21.9		22.9	0.25%	AA-
Lockheed Martin		21.8		24.6	0.27%	A-
Takeda Pharmaceutical		21.6		23.0	0.26%	BBB+
Kroger		21.2		22.8	0.25%	BBB
Citigroup		21.0		22.4	0.25%	BBB+
Wells Fargo		20.9		22.2	0.25%	BBB+
ERAC USA Finance		20.7		22.4	0.25%	A-
Top 25 Corporate and Municipal	$	614.6	$	659.6	7.36%
(1) - Represents nationally recognized rating agency sources.

17

THE HANOVER INSURANCE GROUP
RECONCILIATION OF OPERATING INCOME TO NET INCOME
	Three Months ended September 30														Nine Months ended September 30
	2020							2019							2020							2019
(In millions, except per share data)		$			Per Share (Diluted)				$			Per Share (Diluted)				$			Per Share (Diluted)				$			Per Share (Diluted)
OPERATING INCOME (LOSS)
Commercial Lines	$		62.3					$		74.1					$		172.2					$		227.1
Personal Lines			64.2							50.2							161.7							108.7
Other			1.9							2.0							0.5							7.3
Total			128.4							126.3							334.4							343.1
Interest expense			(9.8	)						(9.4	)						(28.6	)						(28.1	)
Operating income before income taxes			118.6		$	3.12				116.9		$	2.91				305.8		$	7.96				315.0		$	7.71
Income tax expense on operating income			(25.1	)		(0.66	)			(23.9	)		(0.60	)			(62.8	)		(1.63	)			(63.6	)		(1.56	)
Operating income after income taxes			93.5			2.46				93.0			2.31				243.0			6.33				251.4			6.15
Non-operating items:
Net realized gains from sales and other			8.2			0.21				0.6			0.02				12.1			0.31				1.0			0.02
Net change in fair value of equity securities			30.3			0.80				15.0			0.37				(44.4	)		(1.15	)			75.3			1.84
Impairment losses on investments			(0.8	)		(0.02	)			(0.8	)		(0.02	)			(27.9	)		(0.73	)			(1.2	)		(0.03	)
Loss from repayment of borrowings			(6.1	)		(0.16	)			-			-				(6.2	)		(0.16	)			-			-
Other non-operating items			(1.6	)		(0.04	)			(1.4	)		(0.03	)			(1.6	)		(0.04	)			(1.4	)		(0.03	)
Income tax benefit (expense) on non-operating items			(4.0	)		(0.11	)			4.8			0.12				21.1			0.55				(6.3	)		(0.15	)
Income from continuing operations, net of taxes			119.5			3.14				111.2			2.77				196.1			5.11				318.8			7.80
Discontinued operations (net of taxes):
Sale of Chaucer business			-			-				6.4			0.16				-			-				(2.6	)		(0.06	)
Income from Chaucer business			-			-				2.1			0.05				-			-				1.6			0.03
Loss from discontinued life businesses			(0.6	)		(0.01	)			(0.8	)		(0.02	)			(2.0	)		(0.06	)			(2.5	)		(0.06	)
NET INCOME	$		118.9		$	3.13		$		118.9		$	2.96		$		194.1		$	5.05		$		315.3		$	7.71

18

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.

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

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

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

Prior year reserve development, which can be favorable or unfavorable, represents changes in our estimate of the costs to pay claims from prior years. We believe that a discussion of operating income 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 (loss) determined in accordance with GAAP. A reconciliation of income (loss) from continuing operations to operating income before interest expense and taxes and income (loss) from continuing operations per share to operating income after taxes per share for the three and nine months ended September 30, 2020 and 2019 is set forth on page 18 of this document. The presentation of loss ratios calculated excluding the effects of reserve development and/or catastrophe losses should not be construed as a substitute for loss ratios determined in accordance with GAAP.

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

19

CORPORATE OFFICES AND							INDUSTRY RATINGS AS OF October 27, 2020				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	A2	1-800-317-4454
The Hanover Insurance Company							Citizens Insurance Company
440 Lincoln Street							of America	A	A	-
Worcester, MA 01653
											COMMON STOCK
Citizens Insurance Company of America								A.M.	Standard
808 North Highlander Way							Debt Ratings	Best	& Poor's	Moody's	Common stock of The Hanover Insurance Group, Inc. is
Howell, MI 48843							The Hanover Insurance Group, Inc.				traded on the New York Stock Exchange under the
							Senior Debt	bbb+	BBB	Baa2	symbol "THG".
							Subordinated Debentures	bbb-	BB+	Baa3
MARKET AND DIVIDEND INFORMATION											INQUIRIES
The following tables set forth the high and low closing							The above ratings are accurate as of October 27, 2020, and may be				Oksana Lukasheva
sales prices of our common stock and quarterly cash							revised, superseded or withdrawn by the respective rating agency at				Vice President
dividends for the periods indicated:							any time. For the most current information concerning the financial				Investor Relations and Financial Planning and Analysis
							ratings of The Hanover Insurance Group and its subsidiaries, please				olukasheva@hanover.com
Quarter Ended	2020						visit the websites of the respective rating agencies.
	Price Range				Dividends
	High		Low		Per Share
March 31	$	140.54	$	83.67	$	0.650
June 30	$	115.06	$	84.64	$	0.650
September 30	$	107.36	$	89.10	$	0.650
Quarter Ended	2019
	Price Range				Dividends
	High		Low		Per Share
March 31	$	120.17	$	108.54	$	0.600
June 30	$	128.90	$	114.11	$	0.600
September 30	$	135.71	$	127.20	$	0.600
December 31	$	139.27	$	126.14	$	0.650

20