The Hanover Insurance Group (THG) investor relations material

Strategic Direction, Vision, and Leadership

• Strategy centers on scaling with resiliency, leveraging a distinctive market position, portfolio diversification, and technology-driven operating models for durable growth through 2031.

• Focus on small to mid-size commercial and higher-value personal lines customers, targeting segments where expertise and advice matter.

• Authentic agency partnerships, product breadth, and smart innovation are core competitive advantages, supported by a high-performance, people-centric culture and seamless leadership transition.

• Innovative operating models and AI integration drive speed, efficiency, and value creation across the insurance value chain.

Financial Targets and Performance Outlook

• Five-year targets include mid to high teens operating ROE, 7% annual net written premium growth, and 10%+ annual EPS and book value per share growth through 2031.

• Specialty segment targets 9% net written premium CAGR, with all segments contributing to growth and profitability.

• Expense ratio improvement to 28.5% by 2031, driven by scale, technology, and AI, is a key lever for margin expansion.

• Catastrophe volatility and reserving rigor have been enhanced, supporting earnings durability and capital efficiency.

• Achieved ~14% operating ROE over the last 12-18 months ending Q2 2026.

Business Model Transformation and Technology

• Operating model transformation embeds AI and automation across underwriting, claims, and service, improving efficiency, productivity, and decision quality.

• Proprietary Agency Insight platform deepens agency relationships, drives growth, and creates information asymmetry in distribution.

• Claims transformation has delivered 80-100 bps of loss adjustment expense improvement since 2021 and $65M in annual run-rate savings, with further value expected from unified digital platforms and advanced analytics.

• AI and digital transformation have reduced underwriting turnaround time by up to 60%, increased quote-to-bind ratios, and improved claims adjuster productivity.

• AI investments are focused, outcome-driven, and leverage a standardized tech stack for scalable innovation.