The Hanover Insurance Group (THG) Investor presentation summary

Business overview and strategy

• Operates as a diversified property and casualty insurer with $6.1B in 2024 net premiums written, split across personal lines (41%), core commercial (36%), and specialty (23%).

• Focuses on the independent agency channel, leveraging robust product capabilities, analytics, and a distinctive distribution approach for competitive advantage.

• Differentiates by combining national carrier scale with regional carrier flexibility and local underwriting.

• Strategic vision centers on being the premier P&C franchise for independent agents, emphasizing specialized products, agency partnerships, and customer-driven innovation.

• Pursues sustainable growth through culture, human capital development, and enterprise risk management.

Financial performance and profitability

• Achieved a ~6% CAGR in net premiums written since 2018, reaching $6.1B in 2024.

• Combined ratio improved to 91.1% in Q3 2025, with catastrophe losses below historical averages and favorable reserve development.

• Net investment income rose 27.5% year-over-year in Q3 2025, driven by higher yields and cashflows.

• Maintains a high-quality, diversified investment portfolio of $11.3B, with 95% of fixed maturities rated investment grade.

• Focuses on disciplined underwriting, conservative reserving, and returning excess capital to shareholders.

Segment highlights and growth drivers

• Specialty segment targets small to mid-sized clients, nearly doubling written premium over 10 years, with a $45B market opportunity.

• Core commercial leverages flexible underwriting and technology platforms, focusing on middle market and small commercial growth.

• Personal lines segment expands upmarket, leveraging digital platforms and new agency appointments in under-penetrated geographies.

• Agency relationships have deepened and broadened, driving higher retention and improved loss ratios.

• Capitalizes on industry-wide agency consolidation trends to broaden market reach and drive organic growth.