THG 2018 Annual Report

SCHEDULE III THE HANOVER INSURANCE GROUP, INC. SUPPLEMENTARY INSURANCE INFORMATION DECEMBER 31, 2018 (in millions) Segments Deferred acquisition costs Future policy benefits, losses, claims and loss expenses Unearned premiums Other policy claims and benefits payable Premium revenue Net investment income (1) Benefits, claims, losses and settlement expenses Amortization of deferred acquisition costs Other operating expenses (2), (3) Premiums written Commercial Lines $ 296.9 $3,550.6 $ 1,369.5 $ 8.0 $2,548.4 $ 182.2 $ 1,568.3 $ 587.5 $ 318.0 $ 2,610.7 153.9 1,707.6 908.3 ² 1,706.0 73.7 1,155.0 304.3 185.8 1,774.1 Other ² 37.9 ² ² ² 11.5 1.3 ² 54.3 ² Interest on Debt ² ² ² ² ² ² ² ² 45.1 ² Eliminations ² ² ² ² ² ² ² ² (7.8) ² Total (4) $ 450.8 $5,296.1 $ 2,277.8 $ 8.0 $4,254.4 $ 267.4 $ 2,724.6 $ 891.8 $ 595.4 $ 4,384.8 DECEMBER 31, 2017 (in millions) Deferred acquisition costs Future policy benefits, losses, claims and loss expenses Unearned premiums Other policy claims and benefits payable Premium revenue Net investment income (1) Benefits, claims, losses and settlement expenses Amortization of deferred acquisition costs Other operating expenses (2) Premiums written Commercial Lines $ 286.4 $3,399.3 $ 1,299.5 $ 8.2 $2,399.6 $ 165.8 $ 1,531.4 $ 557.9 $ 312.8 $ 2,462.0 Personal Lines 143.6 1,619.3 833.7 ² 1,580.8 70.1 1,046.9 282.8 178.5 1,647.1 Other ² 38.7 ² ² ² 8.0 1.3 ² 26.0 ² Interest on Debt ² ² ² ² ² ² ² ² 45.2 ² Eliminations ² (7.0) (1.5) ² ² ² ² ² (7.8) ² Total (4) $ 430.0 $5,050.3 $ 2,131.7 $ 8.2 $3,980.4 $ 243.9 $ 2,579.6 $ 840.7 $ 554.7 $ 4,109.1 DECEMBER 31, 2016 (in millions) Deferred acquisition costs Future policy benefits, losses, claims and loss expenses Unearned premiums Other policy claims and benefits payable Premium revenue Net investment income (1) Benefits, claims, losses and settlement expenses Amortization of deferred acquisition costs Other operating expenses (2), (3) Premiums written Commercial Lines $ 269.6 $3,069.5 $ 1,231.5 $ 6.4 $2,318.0 $ 158.5 $ 1,601.5 $ 537.4 $ 308.9 $ 2,361.5 Personal Lines 133.2 1,554.0 763.6 ² 1,471.5 69.5 936.1 266.2 172.4 1,521.2 Other ² 40.3 ² ² ² 3.6 8.4 ² 113.2 ² Interest on Debt ² ² ² ² ² ² ² ² 51.4 ² Eliminations ² (10.2) (3.1) ² ² ² ² ² (7.6) ² Total (4) $ 402.8 $4,653.6 $ 1,992.0 $ 6.4 $3,789.5 $ 231.6 $ 2,546.0 $ 803.6 $ 638.3 $ 3,882.7 (1) The Company manages investment assets for its Commercial Lines, Personal Lines and Other segments on a combined basis, based on the requirements of its combined property and casualty companies. Net investment income is allocated to these segments based on actuarial information related to the underlying businesses. (2) For other operating expenses that are not directly attributable to a single segment for combined property and casualty companies, expenses are generally allocated based upon either net premiums written or net premiums earned. (3) In 2018 and 2016, the Other segment includes $28.2 million and $88.3 million of losses on the repayment of debt, respectively. (4) Information for all periods excludes results and balances related to the Chaucer business ± See Note 2 ± ³'LVFRQWLQXHG 2SHUDWLRQV´ in the Notes to Consolidated Financial Statements. 151 2018 ANNUAL REPORT | THE HANOVER INSURANCE GROUP