THG 2018 Annual Report

To our shareholders, The Hanover made important strides in 2018, advancing our strategy, delivering strong financial performance and positioning our company for future success. I am more excited than ever to share with you our recent accomplishments and our progress. These are dynamic and exciting times in our business and in the world. As a leading property and casualty insurance company, it is critical that we anticipate new trends and build capabilities and competencies that enable profitable growth well into the future. Our strategy is to stay nimble and responsive to change, creating value for our customers and our agents. We tailor our specialized offerings for our agents, helping us both compete in the market. At the same time, we are introducing innovative business acquisition models in partnership with our agents to capture new market opportunities. Our unique culture of collaboration, inclusiveness and expertise remains a competitive advantage, allowing us to become increasingly agile and flexible. Even as we invest in our future, we continue to focus on delivering strong financial results to our investors and value-added products and services to our agents and customers every day. J O H N C . R O C H E President and Chief Executive Officer $4.4B 19% 19% 22% 26% 14% • Small Commercial • Middle Market • Specialty Lines • Personal Auto • Homeowners 2018 ANNUAL REPORT | THE HANOVER INSURANCE GROUP 3 INSURANCE PRODUCT MIX 2018 Net Premiums Written