THG 2018 Annual Report

SCHEDULE VI THE HANOVER INSURANCE GROUP, INC. SUPPLEMENTAL INFORMATION CONCERNING PROPERTY AND CASUALTY INSURANCE OPERATIONS YEARS ENDED DECEMBER 31 (in millions) Affiliation with Registrant Deferred acquisition costs Reserves for unpaid claims and claim adjustment expenses (1) Discount, if any, deducted from previous column (2) Unearned premiums (1) Earned premiums Net investment income Consolidated Property and Casualty Subsidiaries (3) $ 450.8 $ 5,304.1 $ ² $ 2,277.8 $ 4,254.4 $ 267.4 2017 $ 430.0 $ 5,058.5 $ ² $ 2,131.7 $ 3,980.4 $ 243.9 2016 $ 402.8 $ 4,660.0 $ ² $ 1,992.0 $ 3,789.5 $ 231.6 Claims and claim adjustment expenses incurred related to r Current yea Prior years Amortization of deferred acquisition costs Paid claims and claim adjustment expenses Premiums written 2018 $ 2,733.5 $ (8.9) $ 891.8 $ 2,496.6 $ 4,384.8 2017 $ 2,575.1 $ (0.2) $ 840.7 $ 2,282.2 $ 4,109.1 2016 $ 2,307.8 $ 238.2 $ 803.6 $ 2,141.8 $ 3,882.7 Reserves for unpaid claims and claim adjustment expenses are shown gross of $1,472.6 million, $1,455.0 million and $1,349.2 million of reinsurance recoverable on unpaid losses in 2018, 2017 and 2016, respectively. Unearned premiums are shown gross of prepaid premiums of $117.6 million, $101.8 million and $90.9 million in 2018, 2017 and 2016, respectively. Reserves for unpaid claims and claims adjustment expense also include policyholder dividends. (2) The Company does not use discounting techniques. (3) Information for all periods excludes results and balances related to the discontinued Chaucer business. See Note 2 ± ³'LVFRQWLQXHG 2SHUDWLRQV´ LQ WKH 1RWHV WR &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV IRU IXUWKHU LQIRUPDWLRQ RQ WKDW EXVLQHVV 154 THE HANOVER INSURANCE GROUP | 2018 ANNUAL REPORT