THG 2018 Annual Report

Commercial automobile liability (in millions) As of Incurred Losses and ALAE, Net of Reinsurance December 31, 2018 YEARS ENDED DECEMBER 31, Cumulative Incurred Accident 2013 2014 2015 Claim Year Unaudited Unaudited Unaudited 2016 2017 2018 IBNR Count 2013 $ 177.7 $ 179.4 $ 205.3 $ 227.5 $ 225.6 $ 231.0 $ 1.4 15,274 2014 168.5 163.3 177.3 181.7 185.1 6.4 13,477 2015 163.4 168.3 166.9 167.8 10.0 12,838 2016 157.0 157.7 163.0 16.4 11,629 2017 159.5 170.1 43.4 11,343 2018 182.8 110.7 10,338 Total $ 1,099.8 Cumulative Paid Losses and ALAE, Net of Reinsurance YEARS ENDED DECEMBER 31, Accident 2013 2014 2015 Year Unaudited Unaudited Unaudited 2016 2017 2018 2013 $ 35.9 $ 89.6 $ 137.6 $ 176.3 $ 200.6 $ 214.9 33.1 70.8 102.7 137.1 168.2 2015 32.2 63.8 96.4 129.3 2016 27.8 60.7 98.3 2017 26.9 71.2 2018 29.2 Total $ 711.1 Total reserves for 2013 ± 2018 accident years (incurred - paid) 388.7 Total reserves for 2012 and prior accident years 14.4 Unallocated loss adjustment expense 4.9 Net reserves at December 31, 2018 $ 408.0 127 2018 ANNUAL REPORT | THE HANOVER INSURANCE GROUP