THG 2018 Annual Report

General liability - claims made (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 $ 54.9 $ 55.4 $ 60.6 $ 71.4 $ 69.2 $ 68.4 $ 0.9 645 2014 61.7 69.9 83.9 86.2 82.5 2.9 907 2015 93.2 98.8 98.4 90.2 4.9 1,035 2016 103.6 101.7 97.1 18.4 1,082 2017 103.3 104.6 35.5 1,310 2018 120.9 59.5 2,586 Total $ 563.7 Cumulative Paid Losses and ALAE, Net of Reinsurance YEARS ENDED DECEMBER 31, Accident 2013 2014 2015 Year Unaudited Unaudited Unaudited 2016 2017 2018 2013 $ 9.3 $ 36.2 $ 53.7 $ 61.1 $ 64.5 $ 65.7 11.0 38.8 59.1 71.5 75.4 2015 10.0 43.6 64.2 76.0 2016 11.1 42.9 66.1 2017 12.3 42.3 2018 17.3 Total $ 342.8 Total reserves for 2013 ± 2018 accident years (incurred - paid) 220.9 Total reserves for 2012 and prior accident years 4.0 Unallocated loss adjustment expense 4.8 Net reserves at December 31, 2018 $ 229.7 129 2018 ANNUAL REPORT | THE HANOVER INSURANCE GROUP