The Hanover Insurance Group (THG) Investor presentation summary

Financial highlights and business mix

• Market capitalization stands at $5.7 billion with a stock price of $157.03 as of November 2024; annual dividend per share is $3.40, yielding 2.2%.

• Book value per share is $79.90, with GAAP equity at $2.9 billion and total capital at $5.8 billion.

• Business mix for 2023 net premiums written: Personal Lines 42%, Core Commercial 36%, Specialty 22%.

• Financial strength ratings are A (AM Best, S&P Global) and A2 (Moody's); senior debt rated bbb+/BBB/Baa2.

Strategic positioning and growth drivers

• Differentiated strategy leverages robust product capabilities, analytics, and a distinctive agency distribution model.

• Focus on expanding Specialty business and deepening agency relationships to drive growth and profitability.

• Agency approach emphasizes targeted distribution, broad underwriting, and business insights, increasing retention and improving loss ratios.

• Positioned to capitalize on agency consolidation trends and expand geographic and product reach.

Segment performance and market opportunities

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

• Core Commercial segment leverages flexible underwriting and technology, targeting a $190B market.

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