THG 2018 Annual Report

THE HANOVER INSURANCE GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31 2018 2017 2016 (in millions) Net income $ 391.0 $ 186.2 $ 155.1 Other comprehensive income (loss), net of tax: Available-for-sale securities: Net appreciation (depreciation) during the period (170.1) 13.4 28.8 Change in other-than-temporary impairment losses recognized in other comprehensive income ² 6.0 7.3 Amount realized with sale of Chaucer business 19.1 ² ² Total available-for-sale securities (151.0) 19.4 36.1 Pension and postretirement benefits: Net actuarial losses and prior service costs arising in the period (17.0) 13.6 (30.3) Amortization recognized as net periodic benefit and postretirement cost 7.7 9.4 6.4 Amount realized with sale of Chaucer business 16.4 ² ² Total pension and postretirement benefits 7.1 23.0 (23.9) Cumulative foreign currency translation adjustment: Amount recognized as cumulative foreign currency translation during the period (1.7) 2.4 (3.3) Amount realized with sale of Chaucer business 23.2 ² ² Total cumulative foreign currency translation adjustment 21.5 2.4 (3.3) Total other comprehensive income (loss), net of tax (122.4) 44.8 8.9 Comprehensive income $ 268.6 $ 231.0 $ 164.0 The accompanying notes are an integral part of these consolidated financial statements. 77 2018 ANNUAL REPORT | THE HANOVER INSURANCE GROUP