THG 2018 Annual Report

General liability and umbrella - occurrence (in millions) As of Incurred Losses and ALAE, Net of Reinsurance December 31, 2018 YEARS ENDED DECEMBER 31, Cumulative Incurred Accident 2011 2012 2013 2014 2015 Claim Year Unaudited Unaudited Unaudited Unaudited Unaudited 2016 2017 2018 IBNR Count 2011 $ 47.6 $ 43.8 $ 38.2 $ 42.2 $ 51.0 $ 55.6 $ 55.4 $ 57.5 $ 3.3 1,398 2012 77.2 59.3 62.2 64.3 71.1 74.2 69.1 3.7 1,779 2013 84.1 67.4 71.5 88.6 84.4 81.2 8.2 2,031 2014 100.9 82.3 98.6 101.4 98.3 10.6 2,133 2015 104.2 99.3 99.6 97.0 21.3 2,550 2016 95.6 100.7 101.5 33.9 2,015 2017 97.7 107.6 54.2 1,844 2018 99.8 74.4 1,917 Total $ 712.0 Cumulative Paid Losses and ALAE, Net of Reinsurance YEARS ENDED DECEMBER 31, Accident 2011 2012 2013 2014 2015 Year Unaudited Unaudited Unaudited Unaudited Unaudited 2016 2017 2018 2011 $ 1.6 $ 6.7 $ 19.4 $ 31.1 $ 39.8 $ 45.8 $ 47.8 $ 50.6 2012 2.2 12.6 29.8 43.8 52.1 60.6 63.0 2013 2.4 11.0 26.8 43.1 56.1 63.5 2014 3.1 14.5 31.4 52.8 70.4 2015 3.3 15.2 30.8 48.5 2016 3.1 15.0 31.6 2017 4.4 17.0 2018 4.1 Total $ 348.7 Total reserves for 2011 ± 2018 accident years (incurred - paid) 363.3 Total reserves for 2010 and prior accident years 25.8 Unallocated loss adjustment expense and other 11.5 Net reserves at December 31, 2018 $ 400.6 128 THE HANOVER INSURANCE GROUP | 2018 ANNUAL REPORT