THG 2018 Annual Report

SCHEDULE II (CONTINUED) THE HANOVER INSURANCE GROUP, INC. CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31 2018 2017 (in millions, except per share data) Fixed maturities - at fair value (amortized cost of $380.5 and $281.9) $ 374.3 $ 280.9 Equity securities - at fair value 1.1 1.1 Cash and cash equivalents (1) 827.4 32.7 Investments in subsidiaries 2,800.1 3,455.4 Net receivable from subsidiaries 25.0 31.3 Other assets (2) 34.6 2.6 Total assets $ 4,062.5 $ 3,804.0 Liabilities Expenses and state taxes payable (3) $ 275.2 $ 7.9 Current income tax payable 46.9 3.2 Interest payable 7.8 8.1 Debt 777.9 787.1 Total liabilities 1,107.8 806.3 Shareholders' Equity Preferred stock, par value $0.01 per share, 20.0 million shares authorized, none issued ² ² Common stock, par value $0.01 per share, 300.0 million shares authorized, 60.5 million shares issued 0.6 0.6 Additional paid-in-capital 1,871.8 1,857.0 Accumulated other comprehensive income (loss) (116.5) 107.6 Retained earnings 2,182.3 1,975.0 Treasury stock at cost (18.2 and 18.0 million shares) (983.5) (942.5) Total shareholders' equity 2,954.7 2,997.7 Total liabilities and shareholders' equity $ 4,062.5 $ 3,804.0 (1) Included in 2018 were net cash proceeds of $762.0 million as a result of the sale of the Chaucer business to China Re on December 28, 2018. (2) In 2018, other assets include a $31.7 million receivable for estimated contingent consideration related to the sale of the Chaucer business. (3) Included in 2018 was a payable related to a special dividend of $193.4 million declared on December 30, 2018. The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto. 149 2018 ANNUAL REPORT | THE HANOVER INSURANCE GROUP