The Hanover Reports Record Third Quarter Net Income and Operating Income of $4.90 and $5.09 per Diluted Share, Respectively; Net and Operating Return on Equity of 21.5% and 21.1%, Respectively

Third Quarter Highlights Combined ratio of 91.1%; combined ratio, excluding catastrophes(1), of 88.1% Catastrophe losses of $46.2 million, or 3.0 points of the combined ratio Net premiums written increase of 4.5%* Renewal price increases(2) of 10.5% in Personal Lines, 9.9% in Core Commercial, and 8.3% in Specialty Rate increases(2) of 8.7% in Core Commercial, 6.8% in Personal Lines, and 5.8% in Specialty Loss and loss adjustment expense (LAE) ratio of 59.8%, 4.7 points below the prior-year quarter, primarily reflecting lower catastrophe losses Current accident year loss and LAE ratio, excluding catastrophes(3), of 57.6%, 0.6 points below the prior-year quarter, led by improvement in Personal Lines Net investment income of $117.0 million, up 27.5% from the prior-year quarter, driven primarily by higher earned yields and higher cashflows Book value per share of $96.00, up 7.1% and 21.2% from June 30, 2025 and December 31, 2024, respectively Book value per share, excluding net unrealized depreciation on fixed maturity investments, net of tax(4), of $100.13, increased 4.1% and 10.8% from June 30, 2025 and December 31, 2024, respectively , /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $178.7 million, or $4.90 per diluted share, in the third quarter of 2025, compared to $102.1 million, or $2.80 per diluted share, in the prior-year quarter. Operating income(5) was $185.6 million, or $5.09 per diluted share, in the third quarter of 2025, compared to $111.3 million, or $3.05 per diluted share, in the prior-year quarter. The company reported net and operating return on equity(6) of 21.5% and 21.1% in the third quarter of 2025, and 19.8% and 19.1% in the first nine months of 2025, respectively. "Once again, our team put forth a very strong performance, not only achieving impressive financial results, but also affirming the effectiveness of our strategy and building on the positive momentum we've established across The Hanover," said John C. Roche, president and chief executive officer. "With an operating return on equity of 21.1% and operating earnings per share of $5.09, both third quarter records, our performance reflects outstanding execution, disciplined underwriting, and relatively quiet weather. Importantly, our underlying performance was strong, driven by the cumulative impact of prior pricing and underwriting actions, which continue to yield excellent results. Market dynamics in our chosen segments remain constructive, with consistent pricing gains in Core Commercial and Specialty thanks to our focus on smaller, less cyclical sectors, while in Personal Lines, our whole-account strategy provides good insulation from the competitive auto market. These results underscore the sustainability of our performance and opportunities ahead, as we continue to invest in innovative capabilities that are shaping our resilient, future-ready franchise positioned for long-term success." "We're thrilled with our recent performance, as we continued to deliver very strong returns in the quarter," added Jeffrey M. Farber, executive vice president and chief financial officer. "We achieved a combined ratio of 91.1%, and 88.1% excluding catastrophes, alongside favorable reserve development across all segments. Our net investment income climbed 27.5%, fueled by strong underwriting cash flows and higher new money yields. Year-to-date through September, we have increased our book value per share by 21.2%, even as we returned approximately $171 million to shareholders through dividends and share repurchases. These results highlight our prudent capital management and unwavering commitment to creating enduring value for our shareholders." Third Quarter 2025 Highlights Three months ended Nine months ended September 30 September 30 ($ in millions, except per share data) 2025 2024 2025 2024 Net premiums written $ 1,738.9 $ 1,663.4 $ 4,833.5 $ 4,638.5 Growth 4.5 % 4.2 % 4.2 % 3.9 % Net premiums earned $ 1,550.7 $ 1,479.2 $ 4,604.5 $ 4,401.0 Current accident year loss and LAE ratio, excluding catastrophes 57.6 % 58.2 % 57.4 % 58.7 % Prior-year development ratio (0.8) % (0.9) % (1.1) % (0.9) % Catastrophe ratio 3.0 % 7.2 % 5.4 % 8.0 % Expense ratio(7) 31.3 % 31.0 % 30.9 % 30.9 % Combined ratio 91.1 % 95.5 % 92.6 % 96.7 % Combined ratio, excluding catastrophes 88.1 % 88.3 % 87.2 % 88.7 % Current accident year combined ratio, excluding catastrophes 88.9 % 89.2 % 88.3 % 89.6 % Net income $ 178.7 $ 102.1 $ 464.0 $ 258.1 per diluted share 4.90 2.80 12.70 7.10 Operating income 185.6 111.3 486.1 291.3 per diluted share 5.09 3.05 13.31 8.01 Book value per share $ 96.00 $ 79.90 $ 96.00 $ 79.90 Ending shares outstanding (in millions) 35.7 36.0 35.7 36.0 (1) See information about this and other non-GAAP measures and definitions, including Operating Income and Operating Return on Equity in the headline, used throughout this press release on the final pages of this document. *Unless otherwise stated, net premiums written growth and other growth comparisons are to the same period of the prior year. The Hanover Insurance Group, Inc. may also be referred to as "The Hanover" or "the company" interchangeably throughout this press release. Third Quarter Operating Highlights Core Commercial Core Commercial operating income before income taxes was $65.1 million in the third quarter of 2025, compared to $55.9 million in the third quarter of 2024. The Core Commercial combined ratio was 97.3%, compared to 97.0% in the prior-year quarter. Catastrophe losses in the third quarter of 2025 were $17.8 million, or 3.2 points of the combined ratio. This compared to catastrophe losses of $31.7 million, or 5.9 points, in the prior-year quarter. Third quarter 2025 results included net favorable prior-year reserve development, excluding catastrophes, of $1.2 million, or 0.2 points, compared to $3.6 million, or 0.7 points, in the third quarter of 2024. Core Commercial current accident year combined ratio, excluding catastrophes, increased 2.5 points, to 94.3% in the third quarter of 2025, compared to 91.8% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, was 60.6%, 2.4 points higher than the prior-year quarter, primarily driven by an increase in loss selections in commercial auto and a couple of larger claims in workers' compensation. Net premiums written were $620.3 million in the third quarter of 2025, up 3.5% from the prior-year quarter, reflecting growth of 7.6% in small commercial and a decline of 0.8% in middle market. Core Commercial renewal price increases averaged 9.9%, including average rate increases of 8.7%. The following table summarizes premiums and the components of the combined ratio for Core Commercial: Three months ended Nine months ended September 30 September 30 ($ in millions) 2025 2024 2025 2024 Net premiums written $ 620.3 $ 599.2 $ 1,760.9 $ 1,695.0 Growth 3.5 % 1.7 % 3.9 % 3.3 % Net premiums earned 554.2 533.3 1,649.5 1,599.6 Operating income before taxes 65.1 55.9 175.8 210.6 Loss and LAE ratio 63.6 % 63.4 % 64.5 % 60.8 % Expense ratio 33.7 % 33.6 % 33.3 % 33.4 % Combined ratio 97.3 % 97.0 % 97.8 % 94.2 % Prior-year development ratio (0.2) % (0.7) % (0.3) % (0.9) % Catastrophe ratio 3.2 % 5.9 % 5.2 % 4.3 % Combined ratio, excluding catastrophes 94.1 % 91.1 % 92.6 % 89.9 % Current accident year combined ratio, excluding catastrophes 94.3 % 91.8 % 92.9 % 90.8 % Specialty Specialty operating income before income taxes was $78.2 million in the third quarter of 2025, compared to $73.0 million in the third quarter of 2024. The Specialty combined ratio was 84.9%, compared to 83.9% in the prior-year quarter. Catastrophe losses in the third quarter of 2025 were $6.0 million, or 1.7 points of the combined ratio, compared to $4.4 million, or 1.3 points, in the prior-year quarter. Third quarter 2025 results included net favorable prior-year reserve development, excluding catastrophes, of $10.0 million, or 2.8 points, with widespread favorability, led by professional and executive lines claims-made business. Net favorable prior-year reserve development, excluding catastrophes, was $10.2 million, or 3.1 points, in the third quarter of 2024. Specialty current accident year combined ratio, excluding catastrophes, increased 0.3 points, to 86.0% in the third quarter of 2025, from 85.7% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, of 48.8% in the third quarter of 2025, was favorable to the company's expectations and increased 0.8 points compared to the prior-year quarter, with both periods reflecting lower-than-expected property losses. Net premiums written were $379.2 million in the third quarter of 2025, up 8.3% from the prior-year quarter. Specialty renewal price increases averaged 8.3%, including average rate increases of 5.8%. The following table summarizes premiums and the components of the combined ratio for Specialty: Three months ended Nine months ended September 30 September 30 ($ in millions) 2025 2024 2025 2024 Net premiums written $ 379.2 $ 350.2 $ 1,105.7 $ 1,042.1 Growth 8.3 % 3.4 % 6.1 % 5.4 % Net premiums earned 353.9 331.2 1,049.4 982.6 Operating income before taxes 78.2 73.0 214.0 174.4 Loss and LAE ratio 47.7 % 46.2 % 49.3 % 51.1 % Expense ratio 37.2 % 37.7 % 37.0 % 37.1 % Combined ratio 84.9 % 83.9 % 86.3 % 88.2 % Prior-year development ratio (2.8) % (3.1) % (3.7) % (2.3) % Catastrophe ratio 1.7 % 1.3 % 3.4 % 3.4 % Combined ratio, excluding catastrophes 83.2 % 82.6 % 82.9 % 84.8 % Current accident year combined ratio, excluding catastrophes 86.0 % 85.7 % 86.6 % 87.1 % Personal Lines Personal Lines operating income before income taxes was $101.1 million in the third quarter of 2025, compared to $21.7 million in the third quarter of 2024. The Personal Lines combined ratio was 89.2%, compared to 100.6% in the prior-year quarter. Catastrophe losses in the third quarter of 2025 were $22.4 million, or 3.5 points of the combined ratio. This compared to catastrophe losses of $69.8 million, or 11.4 points of the combined ratio, in the prior-year quarter. Third quarter 2025 results included net favorable prior-year reserve development, excluding catastrophes, of $0.9 million, or 0.1 points, compared to immaterial prior-year reserve development, excluding catastrophes, in the third quarter of 2024. Personal Lines current accident year combined ratio, excluding catastrophe losses, decreased 3.4 points, to 85.8% in the third quarter of 2025, from 89.2% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, decreased 4.1 points from the prior-year quarter, to 59.8%, driven by the continued benefit of earned pricing outpacing loss trends, lower property claims frequency in the quarter in both homeowners and personal auto, and favorable non-catastrophe weather. The expense ratio increased by 0.7 points to 26.0% in the third quarter of 2025, compared to the prior-year quarter, primarily reflecting an increase in agency compensation expenses associated with the segment's strong performance. Net premiums written were $739.4 million in the third quarter of 2025, up 3.6% compared to the prior-year quarter. The increase was primarily due to continued strong pricing increases and higher new business. Personal Lines renewal price increases averaged 10.5%, including average rate increases of 6.8%. Policies in force (PIF) in the third quarter of 2025 decreased 0.8% compared to the second quarter of 2025, with sequential PIF increases across a set of targeted diversification geographies. The following table summarizes premiums and components of the combined ratio for Personal Lines: Three months ended Nine months ended September 30 September 30 ($ in millions) 2025 2024 2025 2024 Net premiums written $ 739.4 $ 714.0 $ 1,966.9 $ 1,901.4 Growth 3.6 % 6.8 % 3.4 % 3.6 % Net premiums earned 642.6 614.7 1,905.6 1,818.8 Operating income before taxes 101.1 21.7 252.7 10.2 Loss and LAE ratio 63.2 % 75.3 % 66.0 % 78.2 % Expense ratio 26.0 % 25.3 % 25.4 % 25.3 % Combined ratio 89.2 % 100.6 % 91.4 % 103.5 % Prior-year development ratio (0.1) % - % (0.3) % (0.2) % Catastrophe ratio 3.5 % 11.4 % 6.7 % 13.6 % Combined ratio, excluding catastrophes 85.7 % 89.2 % 84.7 % 89.9 % Current accident year combined ratio, excluding catastrophes 85.8 % 89.2 % 85.0 % 90.1 % Investments Net investment income was $117.0 million in the third quarter of 2025, a 27.5% increase from the prior-year quarter, primarily due to the impact of higher earned yields on the fixed maturity investment portfolio, and the continued investment of cashflows from operations. Total pre-tax earned yield on the investment portfolio for the third quarter of 2025 was 4.31%, up from 3.70% in the prior-year quarter. The average pre-tax earned yield on fixed maturities was 4.33% for the third quarter of 2025, up from 3.73% in the prior-year quarter. Net realized investment losses from sales of securities recognized in earnings were $20.3 million, before taxes, in the third quarter of 2025, driven by the sale of certain lower-yield fixed income securities, in consideration of expiring tax gains from 2022. This was partially offset by an increase in the fair value of equity securities of $11.4 million. The company held $11.3 billion in cash and invested assets at September 30, 2025. Fixed maturities and cash represented approximately 92% of the investment portfolio. Approximately 95% of the company's fixed maturity portfolio is rated investment grade. As of September 30, 2025, net unrealized losses on the fixed maturity portfolio were $188.3 million before income taxes, compared to $299.0 million at June 30, 2025. Shareholders' Equity and Capital Actions At September 30, 2025, book value per share was $96.00, up 7.1% from June 30, 2025, driven by strong earnings and an improvement in the unrealized loss position on the fixed maturity portfolio, partially offset by the ordinary quarterly cash dividend and share repurchases in the quarter. Book value per share increased 21.2% from December 31, 2024. Book value per share, excluding net unrealized depreciation on fixed maturity investments, net of tax, was $100.13 at September 30, 2025, up 4.1% and 10.8% from June 30, 2025 and December 31, 2024, respectively. At September 30, 2025, operating insurance company's statutory capital and surplus was $3.27 billion, compared to $3.10 billion at June 30, 2025. From the beginning of July through October 27, 2025, the company repurchased approximately 323,000 shares of common stock, totaling approximately $55 million, of which approximately 213,000 were purchased during the third quarter of 2025 for approximately $36 million, with the remaining balance purchased through a 10b5-1 plan during October. The company has approximately $210 million of remaining capacity under its existing share repurchase program. Earnings Conference Call The company will host a conference call to discuss its third quarter results on Thursday, October 30, at 10:00 a.m. E.T. A presentation will accompany the prepared remarks and has been posted on The Hanover's website. Interested investors and others can listen to the call and access the presentation through The Hanover's website, located in the "Investors" section at www.hanover.com. Investors may access the conference call by dialing 1-844-413-3975 in the U.S. and 1-412-317-5458 internationally. Webcast participants should go to the website 15 minutes early to register, download and install any necessary audio software. A re-broadcast of the conference call will be available on The Hanover's website approximately two hours after the call. About The Hanover The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, the company offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com. Contact Information Definition of Segments Continuing operations include four reporting segments: Core Commercial, Specialty, Personal Lines and Other. The Core Commercial segment includes commercial multiple peril, commercial automobile, workers' compensation and other core commercial lines coverages provided to small and mid-sized businesses. The Specialty segment includes four divisions of business: professional and executive lines, specialty property and casualty (Specialty P&C), marine, and surety and other. Specialty P&C includes coverages such as program business (provides commercial insurance to markets with specialized coverage or risk management needs related to groups of similar businesses), specialty industrial and commercial property, excess and surplus lines, and specialty general liability coverage. The Personal Lines segment markets automobile, homeowners and ancillary coverages to individuals and families. The Other segment primarily includes the operations of the holding company and a block of run-off voluntary assumed property and casualty pools business in which the company has not actively participated since 1995, and run-off direct asbestos and environmental, and product liability businesses. Financial Supplement The Hanover's third quarter news release and financial supplement are available in the "Investors" section of the company's website at hanover.com. The Hanover Insurance Group, Inc. Consolidated Statements of Income Three months ended Nine months ended September 30 September 30 ($ in millions) 2025 2024 2025 2024 Revenues Premiums earned $ 1,550.7 $ 1,479.2 $ 4,604.5 $ 4,401.0 Net investment income 117.0 91.8 328.6 271.9 Net realized and unrealized investment gains (losses): Net realized losses from sales and other (20.3) (23.5) (43.7) (55.2) Net change in fair value of equity securities and other 11.4 11.7 17.4 19.3 Impairments on investments: Credit-related impairments - (0.1) (2.5) (3.3) Losses on intent to sell securities (0.1) (0.5) (0.5) (2.2) Total impairments on investments (0.1) (0.6) (3.0) (5.5) Total net realized and unrealized investment losses (9.0) (12.4) (29.3) (41.4) Fees and other income 6.3 6.7 18.8 21.6 Total revenues 1,665.0 1,565.3 4,922.6 4,653.1 Losses and expenses Losses and loss adjustment expenses 927.1 954.0 2,839.6 2,896.8 Amortization of deferred acquisition costs 324.9 307.8 957.8 910.3 Interest expense 11.6 8.5 28.7 25.6 Other operating expenses 174.3 165.3 510.5 494.1 Total losses and expenses 1,437.9 1,435.6 4,336.6 4,326.8 Income before income taxes 227.1 129.7 586.0 326.3 Income tax expense 48.5 27.6 122.3 68.3 Income from continuing operations 178.6 102.1 463.7 258.0 Discontinued operations (net of taxes): Income from discontinued life businesses 0.1 - 0.3 0.1 Net income $ 178.7 $ 102.1 $ 464.0 $ 258.1 The Hanover Insurance Group, Inc. Condensed Consolidated Balance Sheets September 30 December 31 ($ in millions) 2025 2024 Assets Total investments $ 10,367.4 $ 9,409.8 Cash and cash equivalents 915.7 435.5 Premiums and accounts receivable, net 1,931.6 1,800.8 Reinsurance recoverable on paid and unpaid losses and unearned premiums 1,974.8 1,994.5 Other assets 1,493.2 1,548.2 Assets of discontinued businesses 91.5 85.7 Total assets $ 16,774.2 $ 15,274.5 Liabilities Loss and loss adjustment expense reserves $ 7,706.5 $ 7,461.2 Unearned premiums 3,508.5 3,283.3 Short-term debt 436.8 61.8 Long-term debt 843.0 722.3 Other liabilities 744.2 795.5 Liabilities of discontinued businesses 108.9 108.6 Total liabilities 13,347.9 12,432.7 Total shareholders' equity 3,426.3 2,841.8 Total liabilities and shareholders' equity $ 16,774.2 $ 15,274.5 The following is a reconciliation from operating income to net income(5)(8): The Hanover Insurance Group, Inc. Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 ($ in millions, except per share data) $ Amount Per Share(Diluted) $ Amount Per Share (Diluted) $ Amount Per Share (Diluted) $ Amount Per Share (Diluted) Operating income Core Commercial $ 65.1 $ 55.9 $ 175.8 $ 210.6 Specialty 78.2 73.0 214.0 174.4 Personal Lines 101.1 21.7 252.7 10.2 Other 3.3 - 1.5 0.5 Total 247.7 150.6 644.0 395.7 Interest expense (11.6) (8.5) (28.7) (25.6) Operating income before income taxes 236.1 $ 6.48 142.1 $ 3.89 615.3 $ 16.84 370.1 $ 10.18 Income tax expense on operating income (50.5) (1.39) (30.8) (0.84) (129.2) (3.53) (78.8) (2.17) Operating income after income taxes 185.6 5.09 111.3 3.05 486.1 13.31 291.3 8.01 Non-operating items: Net realized losses from sales and other (20.3) (0.56) (23.5) (0.64) (43.7) (1.20) (55.2) (1.52) Net change in fair value of equity securities and other 11.4 0.31 11.7 0.32 17.4 0.48 19.3 0.53 Impairments on investments: Credit-related impairments - - (0.1) - (2.5) (0.07) (3.3) (0.09) Losses on intent to sell securities (0.1) - (0.5) (0.01) (0.5) (0.01) (2.2) (0.06) Total impairments on investments (0.1) - (0.6) (0.01) (3.0) (0.08) (5.5) (0.15) Other non-operating items - - - - - - (2.4) (0.07) Income tax benefit on non-operating items 2.0 0.06 3.2 0.08 6.9 0.19 10.5 0.29 Income from continuing operations, net of taxes 178.6 4.90 102.1 2.80 463.7 12.70 258.0 7.09 Discontinued operations (net of taxes): Income from discontinued life businesses 0.1 - - - 0.3 - 0.1 0.01 Net income $ 178.7 $ 4.90 $ 102.1 $ 2.80 $ 464.0 $ 12.70 $ 258.1 $ 7.10 Dilutive weighted average shares outstanding 36.4 36.5 36.5 36.4 Basic weighted average shares outstanding 35.8 36.0 35.9 35.9 Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking StatementsCertain statements in this document and comments made by management may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as, but not limited to, "believes," "anticipates," "expects," "intends," "may," "projects," "projections," "plan," "likely," "potential," "targeted," "forecasts," "should," "could," "continue," "outlook," "guidance," "modeling," "target profitability," "target margins," "confident," "optimistic," "committed," "will," "line of sight," "clear visibility to," "designed," "position us," and other similar expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. The company cautions investors that any such forward-looking statements are estimates, beliefs, expectations and/or projections that involve significant judgment, and that historical results, trends and forward-looking statements are not guarantees and are not necessarily indicative of future performance. Actual results could differ materially from those anticipated. These statements include, but are not limited to, the company's statements regarding: The company's outlook and its ability and confidence in achieving components or the sum of the respective period guidance and/or long-term targets for future results of operations including: the combined ratio, excluding catastrophe losses; catastrophe losses; net investment income; growth of net premiums written, net premiums earned and/or pricing increases in total or by line of business; expense ratio; operating return on equity; interest rate assumptions and investment portfolio management, renewal price change, rate, and/or the effective tax rate; The company's ability and timing to deliver on expectations set forth related to target margins, target returns and/or return to target profitability in total or by line of business; The impacts of general economic and socioeconomic conditions on the company's operating and financial results, including, but not limited to, the impact on the company's investment portfolio and capital planning, changes in claims frequency as a result of fluctuations in economic activity, the potential impacts of inflation and other economic factors, and/or claims severity from higher cost of repairs due to, among other things, supply chain disruptions, tariffs and inflation; Ability to manage the impact of inflationary pressures, global market disruptions, economic conditions, geopolitical events or otherwise, including, but not limited to, supply chain disruptions, tariffs, trade policy, labor shortages, and increases in cost of goods, services, labor, and materials; Uses, including the timing of uses, of capital for share repurchases, special or ordinary cash dividends, business investments or growth, debt maturities, or otherwise, and outstanding shares in future periods as a result of various share repurchase mechanisms, capital management framework, and overall comfort with liquidity and capital levels; Catastrophe modeling and variability of catastrophe losses due to risk concentrations, changes in weather patterns, severe weather including hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fire, explosions, severe winter weather and other convective storms, or pandemics, terrorism, civil unrest, riots or other events, as well as the complexity in estimating losses from large catastrophe events due to delayed reporting of the existence, nature or extent of losses or where "demand surge," regulatory assessments, litigation, coverage and technical complexities or other factors may significantly impact the ultimate amount of such losses; Current accident year losses and loss selections (picks), excluding catastrophes, and prior accident year loss reserve development patterns, particularly in complex "longer-tail" liability lines, as well as the inherent variability in short-tail property and non-catastrophe weather losses; Changes in frequency and loss severity trends in Core Commercial, Specialty and/or Personal Lines; The confidence or concern that the current level of reserves is adequate and/or sufficient for future claim payments, whether due to losses that have been incurred but not reported, circumstances that delay the reporting of losses, business complexity, adverse judgments or developments with respect to case reserves, the difficulties and uncertainties inherent in projecting future losses from historical data, changes in replacement and medical costs, as well as complexities including legislative, regulatory or judicial actions that expand the intended scope of coverages, or other factors; Characterization of some business as being "more profitable" in light of inherent uncertainty of ultimate losses incurred, especially for "longer-tail" liability businesses; Efforts to manage expenses, including the company's long-term expense savings targets, while allocating capital to business investment, which is at management's discretion; Our ability to retain profitable policies in force and attract profitable policies, and to increase rates commensurate with, or in excess of, loss trends; The positive impact of mix improvement, underwriting initiatives, coverage restrictions, non-renewals, changes in terms and conditions, and pricing segmentation, among others, on the company's results; The ability to generate growth in targeted businesses, segments, and/or geographies through new agency appointments, rate increases, retention improvements, new business, expansion into geographies, new product introductions, or otherwise, the ability to balance rate actions and retention, as well as the ability to reduce premiums attributable to products, lines of business, or geographies believed to be less profitable; The ability to offset long-term and/or short-term loss trends due to increased frequency and/or severity; increased "social inflation" from a more litigious environment, lawsuit abuse and higher average cost of resolution; increased property replacement or repair costs; and/or social movements; and Investment returns and the effect of macro-economic interest rate trends and overall security yields, including the macro-economic impact of governmental and/or central banking initiatives taken in response to inflationary pressures, and geopolitical circumstances, on new money yields, as well as individual investment and overall investment returns. Additional Risks and UncertaintiesInvestors are further cautioned and should consider the risks and uncertainties in the company's business that may affect such estimates and future performance that are discussed in the company's most recently filed reports on Form 10-K and Form 10-Q and other documents filed by The Hanover Insurance Group, Inc. with the Securities and Exchange Commission (SEC) and that are also available at www.hanover.com under "Investors." These risks and uncertainties include, but are not limited to: Changes in regulatory, legislative, economic, market and political conditions, particularly with respect to rates, competition, the use of data, technology, artificial intelligence (AI), cybersecurity, policy terms and conditions, restrictions on cancellations and/or non-renewals, payment flexibility, and regions where the company has geographical concentrations; Heightened financial market volatility, fluctuations in interest rates (which have a significant impact on the market value of our investment portfolio and thus our book value), inflationary pressures, default rates, tariffs, difficult economic, market and political conditions, and other factors that affect investment returns from the investment portfolio; Recessionary economic periods that may inhibit the company's ability to increase pricing or renew business, or otherwise impact the company's results, and which may be accompanied by higher claims activity in certain lines; Data security and privacy incidents, including, but not limited to, those resulting from malicious cybersecurity attacks on the company or its business partners and service providers, or intrusions into the company's information network systems, including cloud-based data information storage, or data sources; Adverse claims experience, including those driven by large or increased frequency and/or severity of catastrophe events, including those related to hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fire, explosions, severe winter weather and other convective storms, or due to terrorism, civil unrest, riots, or cybersecurity events (including from products not intended to provide cyber coverage); The limitations and assumptions used to model non-catastrophe property and casualty losses (particularly with respect to products with longer-tail liability lines, such as casualty and bodily injury claims, or involving emerging issues related to losses incurred as the result of new lines of business or reinsurance contracts and reinsurance recoverables), leading to potential adverse development of loss and loss adjustment expense reserves; Impacts of changing climate conditions and weather patterns causing higher levels of losses from weather events to persist and leading to new or enhanced regulations; Litigation and the possibility of adverse judicial decisions, including those which expand policy coverage beyond its intended scope and/or award "bad faith" or other non-contractual damages, and the impact of "social inflation" and third-party litigation funding affecting judicial awards and settlements; The ability to increase or maintain insurance rates in line with anticipated loss costs and/or governmental action, including mandates by state departments of insurance to either raise or lower rates, or provide credits or return premium to insureds; Investment impairments, which may be affected by, among other things, the company's ability and willingness to hold investment assets until they recover in value, as well as credit and interest rate risk, and general financial and economic conditions; Disruption of the independent agency channel or its operating model, including the impact of competition and consolidation in the industry and among agents and brokers, and the impact of AI tools; Competition, particularly from competitors who have resource and capability advantages, including the advancing use of AI technology; The global macroeconomic environment, including inflation, recessionary effects, global trade disputes, war, energy market disruptions, equity price risk, tariffs, and interest rate fluctuations, which, among other things, could result in reductions in market values of fixed maturities and other investments, and/or increases in loss costs; Adverse state and federal regulation, legislative and/or regulatory actions (including significant revisions to Michigan's automobile personal injury protection system and related litigation, and various regulations, orders and proposed legislation regarding bad faith, premium grace periods and returns, changes to policy terms and conditions, and rate actions); Financial ratings actions, in particular, downgrades to the company's ratings; Operational and technology risks and evolving technological and product innovation, including risks created by remote work environments, the evolving use of AI, and cybersecurity threats; Uncertainties in estimating indemnification liabilities recorded in conjunction with obligations undertaken in connection with the sale of various businesses and discontinued operations; and The ability to collect from reinsurers, reinsurance availability and pricing, reinsurance terms and conditions, and the performance of the run-off voluntary property and casualty pools business (including those in the Other segment or in discontinued operations). Investors should not place undue reliance on forward-looking statements, which speak only as of the date they are made and should understand the risks and uncertainties inherent in or particular to the company's business. The company does not undertake the responsibility to update or revise such forward-looking statements, except as required by law. Non-GAAP Financial MeasuresAs discussed on page 39 of the company's Annual Report on Form 10-K for the year ended December 31, 2024, the company uses non-GAAP financial measures as important measures of its operating performance, including operating income, operating income before interest expense and income taxes, operating income per diluted share, and components of the combined ratio, both excluding and/or including catastrophe losses, prior-year reserve development and the expense ratio. Management believes these non-GAAP financial measures are important indications of the company's operating performance. The definition of other non-GAAP financial measures and terms can be found in the 2024 Annual Report on pages 62-65. Operating income and operating income per diluted share are non-GAAP measures. They are defined as net income excluding the after-tax impact of net realized and unrealized investment gains (losses), gains and/or losses on the repayment of debt, other non-operating items, and results from discontinued operations. Net realized and unrealized investment gains (losses), which include changes in the fair value of equity securities still held, are excluded for purposes of presenting operating income, as they are, to a certain extent, determined by interest rates, financial markets and the timing of sales. Operating income also excludes net gains and losses from disposals of businesses, gains and losses related to the repayment of debt, costs to acquire businesses, restructuring costs, the cumulative effect of accounting changes, and certain other items. Operating income is the sum of the segment income from: Core Commercial, Specialty, Personal Lines, and Other, after interest expense and income taxes. In reference to one of the company's four reporting segments, "operating income" is the segment income before both interest expense and income taxes. The company also uses "operating income per diluted share" (which is after both interest expense and income taxes). Operating income per share is calculated by dividing operating income by the weighted average number of diluted shares of common stock. Operating loss per share is calculated by dividing operating loss by the weighted average number of basic shares of common stock due to antidilution. The company believes that metrics of operating income and operating income in relation to its four reporting segments provide investors with a valuable measure of the performance of the company's continuing businesses because they highlight the portion of net income attributable to the core operations of the business. Income from continuing operations is the most directly comparable GAAP measure for operating income (and operating income before income taxes) and measures of operating income that exclude the effects of catastrophe losses and/or prior-year reserve development. These non-GAAP measures should not be misconstrued as substitutes for income from continuing operations or net income determined in accordance with GAAP. A reconciliation of operating income to income from continuing operations and net income for the relevant periods is included on page 9 of this news release and in the Financial Supplement. Operating return on average equity (ROE) is a non-GAAP measure. See end note (6) for a detailed explanation of how this measure is calculated. Operating ROE is based on non-GAAP operating income. In addition, the portion of shareholder equity attributed to unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is excluded. The company believes this measure is helpful in that it provides insight to the capital used by, and results of, the continuing business exclusive of interest expense, income taxes, and other non-operating items. These measures should not be misconstrued as substitutes for GAAP ROE, which is based on net income and shareholders' equity of the entire company and without adjustments. Book value per share is total shareholders' equity divided by the number of common shares outstanding. Book value per share excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure and is total shareholders' equity excluding the after-tax effect of unrealized appreciation (depreciation) on fixed maturities and market risk divided by the number of common shares outstanding. The company may provide measures of operating income and combined ratios that exclude the impact of catastrophe losses (which in all respects include prior accident year catastrophe loss development). A catastrophe is a severe loss, resulting from natural or manmade events including, but is not limited to, hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fire, explosions, severe winter weather and other convective storms, riots, and terrorism. Due to the unique characteristics of each catastrophe loss, there is an inherent inability to reasonably estimate the timing or loss amount in advance. The company believes a separate discussion excluding the effects of catastrophe losses is meaningful to understand the underlying trends and variability of earnings, loss and combined ratio results, among others. Prior accident year reserve development, which can either be favorable or unfavorable, represents changes in the company's estimate of costs related to claims from prior years. Calendar year loss and loss adjustment expense (LAE) ratios determined in accordance with GAAP, excluding prior accident year reserve development, are sometimes referred to as "current accident year loss ratios." The company believes a discussion of loss and combined ratios excluding prior accident year reserve development is helpful since it provides insight into both estimates of current accident year results and the accuracy of prior-year estimates. The loss and combined ratios in accordance with GAAP are the most directly comparable GAAP measures for the loss and combined ratios calculated excluding the effects of catastrophe losses and/or prior-year reserve development. The presentation of loss and combined ratios calculated excluding the effects of catastrophe losses and/or prior-year reserve development should not be misconstrued as substitutes for the loss and/or combined ratios determined in accordance with GAAP. Endnotes (1) Combined ratio, excluding catastrophes, and current accident year combined ratio, excluding catastrophes, are non-GAAP measures. These and other non-GAAP measures are used throughout this document. See the disclosure on the use of this and other non-GAAP measures under the headings "Forward-Looking Statements" and "Non-GAAP Financial Measures." The combined ratio (which includes catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. A reconciliation of the GAAP combined ratio to the combined ratio, excluding catastrophes, and to the current accident year combined ratio, excluding catastrophes, is shown below. Three months ended September 30, 2025 Core Commercial Specialty PersonalLines Total Total combined ratio (GAAP) 97.3 % 84.9 % 89.2 % 91.1 % Less: Catastrophe ratio 3.2 % 1.7 % 3.5 % 3.0 % Combined ratio, excluding catastrophe losses (non-GAAP) 94.1 % 83.2 % 85.7 % 88.1 % Less: Prior-year reserve development ratio (0.2) % (2.8) % (0.1) % (0.8) % Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 94.3 % 86.0 % 85.8 % 88.9 % September 30, 2024 Total combined ratio (GAAP) 97.0 % 83.9 % 100.6 % 95.5 % Less: Catastrophe ratio 5.9 % 1.3 % 11.4 % 7.2 % Combined ratio, excluding catastrophe losses (non-GAAP) 91.1 % 82.6 % 89.2 % 88.3 % Less: Prior-year reserve development ratio (0.7) % (3.1) % - % (0.9) % Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 91.8 % 85.7 % 89.2 % 89.2 % Nine months ended September 30, 2025 Core Commercial Specialty Personal Lines Total Total combined ratio (GAAP) 97.8 % 86.3 % 91.4 % 92.6 % Less: Catastrophe ratio 5.2 % 3.4 % 6.7 % 5.4 % Combined ratio, excluding catastrophe losses (non-GAAP) 92.6 % 82.9 % 84.7 % 87.2 % Less: Prior-year reserve development ratio (0.3) % (3.7) % (0.3) % (1.1) % Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 92.9 % 86.6 % 85.0 % 88.3 % September 30, 2024 Total combined ratio (GAAP) 94.2 % 88.2 % 103.5 % 96.7 % Less: Catastrophe ratio 4.3 % 3.4 % 13.6 % 8.0 % Combined ratio, excluding catastrophe losses (non-GAAP) 89.9 % 84.8 % 89.9 % 88.7 % Less: Prior-year reserve development ratio (0.9) % (2.3) % (0.2) % (0.9) % Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 90.8 % 87.1 % 90.1 % 89.6 % (2) Renewal price changes in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the estimated net effect of base rate changes, discretionary pricing, specific inflationary changes or changes in policy level exposure or insured risks. Rate increases in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the base rate changes, discretionary pricing, and inflation, excluding the impact of changes in policy level exposure or insured risks. Renewal price change in Personal Lines represents the average change in premium on policies charged at renewal caused by the net effects of filed rate, inflation adjustments or other changes in policy level exposure or insured risks, regardless of whether or not the policies are retained for the duration of their contractual terms. Rate change in Personal Lines is the estimated cumulative premium effect of approved rate actions applied to policies at renewal, regardless of whether or not policies are actually renewed. Accordingly, rate changes do not represent actual increases or decreases realized by the company. Personal Lines rate changes do not include inflation or changes in policy level exposure or insured risks. (3) Current accident year loss and LAE ratio, excluding catastrophe losses, is a non-GAAP measure, which is equal to the loss and LAE ratio (loss ratio), excluding prior-year reserve development and catastrophe losses. The loss ratio (which includes losses, LAE, catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. The following is a reconciliation of the GAAP loss ratio to the current accident year loss ratio, excluding catastrophe losses. Three months ended September 30, 2025 Core Commercial Specialty Personal Lines Total Total loss and LAE ratio 63.6 % 47.7 % 63.2 % 59.8 % Less: Prior-year reserve development ratio (0.2) % (2.8) % (0.1) % (0.8) % Catastrophe ratio 3.2 % 1.7 % 3.5 % 3.0 % Current accident year loss and LAE ratio, excludingcatastrophes 60.6 % 48.8 % 59.8 % 57.6 % September 30, 2024 Total loss and LAE ratio 63.4 % 46.2 % 75.3 % 64.5 % Less: Prior-year reserve development ratio (0.7) % (3.1) % - % (0.9) % Catastrophe ratio 5.9 % 1.3 % 11.4 % 7.2 % Current accident year loss and LAE ratio, excluding catastrophes 58.2 % 48.0 % 63.9 % 58.2 % Nine months ended September 30, 2025 Core Commercial Specialty PersonalLines Total Total loss and LAE ratio 64.5 % 49.3 % 66.0 % 61.7 % Less: Prior-year reserve development ratio (0.3) % (3.7) % (0.3) % (1.1) % Catastrophe ratio 5.2 % 3.4 % 6.7 % 5.4 % Current accident year loss and LAE ratio, excluding catastrophes 59.6 % 49.6 % 59.6 % 57.4 % September 30, 2024 Total loss and LAE ratio 60.8 % 51.1 % 78.2 % 65.8 % Less: Prior-year reserve development ratio (0.9) % (2.3) % (0.2) % (0.9) % Catastrophe ratio 4.3 % 3.4 % 13.6 % 8.0 % Current accident year loss and LAE ratio, excludingcatastrophes 57.4 % 50.0 % 64.8 % 58.7 % (4) Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure. Book value per share is the most directly comparable GAAP measure and is reconciled in the table below. Period ended December 31 June 30 September 30 2024 2025 2025 Book value per share $79.18 $89.62 $96.00 Less: Net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, per share (11.17) (6.54) (4.13) Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $90.35 $96.16 $100.13 Versus prior quarter Change in book value per share 7.1 % Change in book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax 4.1 % Versus prior-year end Change in book value per share 21.2 % Change in book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax 10.8 % (5) Operating income and operating income per diluted share are non-GAAP measures. Operating income before income taxes, as referenced in the results of the reporting segments, is defined as, with respect to such segment, operating income before interest expense and income taxes. The reconciliation of operating income and operating income per diluted share to the closest GAAP measures, net income and net income per diluted share, respectively, is provided on the preceding pages of this news release. (6) Operating return on average equity (operating ROE) is a non-GAAP measure. Operating ROE is calculated by dividing annualized operating income after tax for the applicable period (see under the heading in this news release "Non-GAAP Financial Measures" and end note (5)), by average shareholders' equity, excluding unrealized appreciation (depreciation) on fixed maturity investments, net of tax, for the period presented. Total shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is also a non-GAAP measure. Total shareholders' equity is the most directly comparable GAAP measure and is reconciled below. For the calculation of operating ROE, the average of beginning and ending shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is used for the period as shown and reconciled in the table below. Period Ended ($ in millions) December 31 March 31 June 30 September 30 2024 2025 2025 2025 Total shareholders' equity (GAAP) $ 2,841.8 $ 3,044.4 $ 3,216.3 $ 3,426.3 Less: net unrealized appreciation (depreciation) on fixed maturity investments, net of tax (401.1) (290.9) (234.7) (147.1) Total shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $ 3,242.9 $ 3,335.3 $ 3,451.0 $ 3,573.4 Quarter Averages Average shareholders' equity (GAAP) $ 3,321.3 Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $ 3,512.2 Year-to-date Averages Average shareholders' equity (GAAP) $ 3,132.2 Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $ 3,400.7 ($ in millions) Three months ended Nine months ended September 30 September 30 Net Income ROE 2025 2025 Net income (GAAP) $ 178.7 $ 464.0 Annualized net income* 714.8 618.7 Average shareholders' equity (GAAP) $ 3,321.3 $ 3,132.2 Return on equity 21.5 % 19.8 % Operating Income ROE (non-GAAP) Operating income after taxes $ 185.6 $ 486.1 Annualized operating income, net of tax* 742.4 648.1 Average shareholders' equity, excluding net unrealized appreciation(depreciation) on fixed maturity investments, net of tax $ 3,512.2 $ 3,400.7 Operating return on equity 21.1 % 19.1 % *For three months ended September 30, 2025, annualized net income and operating income after taxes is calculated by multiplying three months ended net income and operating income after taxes, respectively, by 4. For nine months ended September 30, 2025, annualized net income and operating income after taxes is calculated by dividing nine months ended net income and operating income after taxes, respectively, by 3 and multiplying by 4. (7) Here, and throughout this document, the expense ratio is reduced by installment and other fee revenues for purposes of the ratio calculation. (8) The separate financial information of each reporting segment is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management evaluates the results of the aforementioned reporting segments without consideration of interest expense on debt and on a pre-tax basis. SOURCE The Hanover Insurance Group, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

The Hanover Reports Record Third Quarter Net Income and Operating Income of $4.90 and $5.09 per Diluted Share, Respectively; Net and Operating Return on Equity of 21.5% and 21.1%, Respectively

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