THG 2018 Annual Report

DECEMBER 31, 2017 (in millions) Total Level 1 Level 2 Level 3 Fixed maturities: U.S. Treasury and government agencies $ 322.3 $ 140.0 $ 182.3 $ ² Foreign government 8.5 ² 8.5 ² Municipal 934.0 ² 909.4 24.6 Corporate 3,196.6 ² 3,195.7 0.9 Residential mortgage-backed, U.S. agency backed 605.0 ² 605.0 ² Residential mortgage-backed, non-agency 28.2 ² 28.2 ² Commercial mortgage-backed 595.0 ² 580.8 14.2 Asset backed 59.7 ² 59.7 ² Total fixed maturities 5,749.3 140.0 5,569.6 39.7 Equity securities 567.8 566.7 ² 1.1 Other investments 3.6 ² ² 3.6 Total investment assets at fair value, excluding held-for-sale (Chaucer) 6,320.7 706.7 5,569.6 44.4 Investment assets, held-for-sale 2,153.5 138.0 2,013.3 2.2 Total investment assets at fair value $ 8,474.2 $ 844.7 $ 7,582.9 $ 46.6 /LPLWHG SDUWQHUVKLSV PHDVXUHG DW IDLU YDOXH XVLQJ 1$9 EDVHG RQ DQ RZQHUVKLS LQWHUHVW LQ SDUWQHUV¶ FDSLWDO KDYH QRW EHHQ LQFOX ded in the hierarchy tables. At December 31, 2018 and 2017, the fair values of these investments were $171.5 million and $149.4 million, respectively, approximately 2% of total investment assets, excluding assets-held-for-sale. 7KH IROORZLQJ WDEOHV SURYLGH IRU HDFK KLHUDUFK\ OHYHO WKH &RPSDQ\¶V HVWLPDWHG IDLU YDOXHV RI ILQDQFLDO LQVWUXPHQWV WKDW ZHU e not carried at fair value. DECEMBER 31, 2018 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 1,020.7 $ 1,020.7 $ ² $ ² Other investments 418.9 ² 8.7 410.2 Total financial instruments, excluding held-for-sale 1,439.6 1,020.7 8.7 410.2 Financial instruments, held-for-sale (Chaucer) 3.3 3.3 ² ² Total financial instruments $ 1,442.9 $ 1,024.0 $ 8.7 $ 410.2 Liabilities: Debt $ 825.0 $ ² $ 825.0 $ ² DECEMBER 31, 2017 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 297.9 $ 297.9 $ ² $ ² Equity securities 8.4 ² 8.4 ² Other investments 368.9 ² ² 368.9 Total financial instruments, excluding held-for-sale 675.2 297.9 8.4 368.9 Financial instruments, held-for-sale (Chaucer) 78.5 78.5 ² ² Total financial instruments $ 753.7 $ 376.4 $ 8.4 $ 368.9 Liabilities: Debt $ 865.7 $ ² $ 865.7 $ ² 100 THE HANOVER INSURANCE GROUP | 2018 ANNUAL REPORT