THG 2018 Annual Report

2 THE HANOVER INSURANCE GROUP | 2018 ANNUAL REPORT FINANCIAL HIGHLIGHTS YEAR ENDED DECEMBER 31 (In millions, except per share amounts) 2017 2018 Revenues $4,268 $4,494 Net Income $186 $391 Operating Income 1 $193 $292 Total Assets $15,470 $12,400 Shareholders’ Equity $2,998 $2,955 PER SHARE DATA Net Income Per Share—Diluted $4.33 $9.09 Operating Income Per Share—Diluted 1 $4.48 $6.79 Book Value Per Share $70.59 $69.81* 1 See information about this and other non-GAAP measures and definitions used throughout this report on the final pages. Also see: “Results of Operations — Consolidated — Non-GAAP Financial Measures” in the 2018 Form 10-K. * Book value per share, excluding the impact of the $4.75 per share special dividend declared on December 30, 2018, was $74.56. REVENUE (in millions) $4,494 $4,268 $4,054 $3,928 $3,765 2014 2015 2016 2017 2018 2018: The Hanover at a Glance 100 150 200 250 2013 2014 2015 2016 2017 2018 S&P P&C INSURANCE INDEX S&P 500 INDEX THE HANOVER (NYSE:THG) FIVE-YEAR TOTAL RETURN PERFORMANCE** **The graph above compares the performance of the company’s common stock since December 31, 2013, with the performance of the S&P Property & Casualty Insurance Index and the S&P 500 Index. Assumes $100 invested on December 31, 2013, in The Hanover Insurance Group, Inc.’s common stock or applicable index, including reinvestment of dividends. Source: S&P Global Market Intelligence ©2019