THG 2018 Annual Report

5 2018 ANNUAL REPORT | THE HANOVER INSURANCE GROUP the challenging conditions in the Lloyd’s market, building on its exceptional talent and reputation. We are confident that our former colleagues will prosper under their new ownership, and we wish them continued success. Clear strategic focus and strong market position We also made important progress on our domestic strategy, advancing all our strategic tenets: At The Hanover, we are committed to building a premier property and casualty insurance company, adapting to the dynamic industry environment. We are focused on building on our unique agency-centric distribution platform, enhancing our specialized capabilities and investing in our technological and analytical capabilities to capitalize on emerging market opportunities. AGENCY CARRIER OF CHOICE: LEVERAGING THE STRENGTH OF OUR DISTRIBUTION In a time of increased consumer demands and digital preferences, we firmly believe in the value of quality independent agents and professional advice in the insurance marketplace. Our distribution strategy will continue to constitute our strongest competitive advantage as the world and its risks become increasingly complex. Our unique consultative approach to agency partnerships, combined with our product and service enhancements, earns us additional “shelf space” with our agents. In 2018, our largest franchise agents continued to increase the business they write with our company, which now constitutes more than half of our premium.