THG 2018 Annual Report

PRODUCTION AND UNDERWRITING RESULTS The following table summarizes premiums written on a gross and net basis, net premiums earned and loss (including catastrophe losses), LAE, expense and combined ratios for the Commercial Lines and Personal Lines segments. Loss, LAE, catastrophe loss and combined ratios shown below include prior year reserve development. These items are not meaningful for our Other segment. YEAR ENDED DECEMBER 31, 2018 (dollars in millions) Gross Premiums Written Net Premiums Written Net Premiums Earned Catastrophe Loss Ratios Loss & LAE Ratios Expense Ratios Combined Ratios Commercial Lines $ 2,968.1 $ 2,610.7 $ 2,548.4 5.6 61.5 34.9 96.4 Personal Lines 1,875.6 1,774.1 1,706.0 4.5 67.7 27.8 95.5 Total $ 4,843.7 $ 4,384.8 $ 4,254.4 5.2 64.0 32.1 96.1 YEAR ENDED DECEMBER 31, 2017 (dollars in millions) Gross Premiums Written Net Premiums Written Net Premiums Earned p Catastro he Loss Ratios Loss & LAE Ratios pEx ense Ratios Combined Ratios Commercial Lines $ 2,826.8 $ 2,462.0 $ 2,399.6 7.1 63.7 35.6 99.3 Personal Lines 1,736.7 1,647.1 1,580.8 5.1 66.1 28.0 94.1 Total $ 4,563.5 $ 4,109.1 $ 3,980.4 6.4 64.7 32.6 97.3 YEAR ENDED DECEMBER 31, 2016 (dollars in millions) Gross Premiums Written Net Premiums Written Net Premiums Earned Catastrophe Loss Ratios Loss & LAE Ratios Expense Ratios Combined Ratios Commercial Lines $ 2,686.2 $ 2,361.5 $ 2,318.0 3.0 69.1 36.0 105.1 Personal Lines 1,604.6 1,521.2 1,471.5 3.2 63.6 28.7 92.3 Total $ 4,290.8 $ 3,882.7 $ 3,789.5 3.1 67.2 33.2 100.4 The following table summarizes net premiums written, and loss and LAE and catastrophe loss ratios by line of business for the Commercial Lines and Personal Lines segments. Loss and LAE and catastrophe loss ratios include prior year reserve development. YEAR ENDED DECEMBER 31, 2018 (dollars in millions) Net Premiums Written Loss & LAE Ratios Catastrophe Loss Ratios Commercial Lines: Commercial multiple peril $ 861.4 66.4 10.7 Commercial automobile 344.8 79.9 0.8 Workers' compensation 317.1 51.0 ² Other commercial 1,087.4 54.9 4.7 Total Commercial Lines 2,610.7 61.5 5.6 Personal Lines: Personal automobile 1,127.5 72.0 0.5 Homeowners 604.0 61.2 12.1 Other personal 42.6 48.1 2.2 Total Personal Lines 1,774.1 67.7 4.5 Total $ 4,384.8 64.0 5.2 42 THE HANOVER INSURANCE GROUP | 2018 ANNUAL REPORT