THG 2018 Annual Report

ITEM 6 - SELECTED FINANCIAL DATA FIVE YEAR SUMMARY OF SELECTED FINANCIAL HIGHLIGHTS YEARS ENDED DECEMBER 31 (in millions, except per share data) Statements of Income Revenues Premiums $ 4,254.4 $ 3,980.4 $ 3,789.5 $ 3,653.6 $ 3,488.5 Net investment income 267.4 243.9 231.6 231.1 224.3 Net realized investment gains (losses) (50.7) 21.1 10.2 19.2 29.3 Fees and other income 23.2 22.5 22.6 23.6 23.2 Total revenues 4,494.3 4,267.9 4,053.9 3,927.5 3,765.3 Losses and Expenses Losses and loss adjustment expenses 2,724.6 2,579.6 2,546.0 2,367.9 2,294.3 Amortization of deferred acquisition costs 891.8 840.7 803.6 778.0 748.5 Loss on repayment of debt 28.2 ² 88.3 24.1 0.1 Other operating expenses 567.2 554.7 550.0 540.8 542.5 Total losses and expenses 4,211.8 3,975.0 3,987.9 3,710.8 3,585.4 Income from continuing operations before income taxes 282.5 292.9 66.0 216.7 179.9 Income tax expense (benefit) 43.5 76.8 (1.0) 59.3 40.9 Income from continuing operations, net of taxes 239.0 216.1 67.0 157.4 139.0 Discontinued Operations: Gain from sale of Chaucer business, net of taxes 131.9 ² ² ² ² Income (loss) from Chaucer business, net of taxes 20.0 (13.1) 89.1 173.4 143.3 Income (loss) from discontinued life business, net of taxes 0.1 (16.8) (1.0) 0.7 (0.3) Net income $ 391.0 $ 186.2 $ 155.1 $ 331.5 $ 282.0 Net income per common share (diluted) $ 9.09 $ 4.33 $ 3.59 $ 7.40 $ 6.28 Dividends declared per common share $ 6.97 $ 2.04 $ 1.88 $ 1.69 $ 1.52 Balance Sheets (at December 31) Total assets $ 12,399.7 $ 15,469.6 $ 14,220.4 $ 13,781.2 $ 13,748.9 Debt 777.9 786.9 786.4 803.1 892.7 Total liabilities 9,445.0 12,471.9 11,362.9 10,936.8 10,904.9 Shareholders' equity 2,954.7 2,997.7 2,857.5 2,844.4 2,844.0 36 THE HANOVER INSURANCE GROUP | 2018 ANNUAL REPORT