The Hanover Insurance Group (THG) Investor presentation summary

Financial highlights and business mix

• Reported a stock price of $165.10 and market capitalization of $5.9 billion as of February 7, 2025, with a $3.60 annual dividend per share (2.2% yield).

• Book value per share was $79.18, with total capital of $3.6 billion and GAAP equity of $2.8 billion.

• 2024 net premiums written reached $6.1 billion, split across Personal Lines (41%), Core Commercial (36%), and Specialty (23%).

• Maintains strong financial strength ratings: A (AM Best, S&P Global), A2 (Moody's).

Strategic positioning and growth

• Focuses on a sustainable competitive advantage in the independent agency market through robust product capabilities, analytics, and local underwriting.

• Differentiated by distinctive agency partnerships, specialized products, and a customer-driven approach.

• Agency relationships have deepened and broadened, driving growth, profitability, and higher retention.

• Positioned to capitalize on industry-wide agency consolidation trends, expanding market reach and capabilities.

Segment performance and market opportunities

• Specialty segment targets small to mid-sized clients, aiming for ~10% CAGR, with a $45B market opportunity and $1.4B in 2024 NPW.

• Core Commercial leverages flexible underwriting and technology, with a $190B market opportunity and $2.2B in 2024 NPW.

• Personal Lines focuses on whole account offerings for middle market customers, with a $70B market opportunity and $2.5B in 2024 NPW.