Hanover Insurance is like **Travelers** or **Allstate**, but with a strong emphasis on distributing its property and casualty insurance through independent agents.

Think of it as a slightly smaller **Chubb** or **Travelers**, providing a wide array of property and casualty policies to businesses and individuals via independent brokers.

It's like **GEICO** or **Progressive**, but instead of selling directly, Hanover Insurance works through independent agents to offer its property and casualty products.

Hanover Insurance (THG) primarily offers the following services:

• Commercial Lines Insurance: Provides a wide range of insurance coverages designed to protect businesses from multiple perils, including property damage, liability, automobile accidents, workers' injuries, and professional risks.
• Personal Lines Insurance: Offers essential insurance solutions for individuals, such as personal automobile, homeowner's, and personal umbrella coverages, as well as protection for personal property and specific risks like cyber threats.
• Investment Management Services: Markets and provides services for managing investments to institutions, pension funds, and other organizations.

Hanover Insurance (THG) serves a broad and diversified customer base, and does not have a few "major customers" that are specific named companies. Instead, its major customers fall into distinct categories based on the types of insurance products and services they purchase. The company serves both individuals and various types of organizations.

The major customer categories for Hanover Insurance are:

• Individuals and Households: These customers purchase personal insurance products such as personal automobile coverage, homeowner's coverage, personal umbrella, personal watercraft, and other miscellaneous personal coverages through the company's Personal Lines segment.
• Businesses and Organizations: These customers are typically small to medium-sized commercial enterprises that purchase a wide array of commercial insurance products. This includes commercial multiple peril, commercial automobile, workers' compensation, management and professional liability, marine, specialty industrial and commercial property, general liability, surety, umbrella, fidelity, and crime coverages through the Commercial Lines segment.
• Institutions, Pension Funds, and Other Organizations: These customers utilize the company's Other segment, which markets investment management services to institutions, pension funds, and various other organizational clients.

John C. Roche, President and Chief Executive Officer

John C. Roche was appointed President and Chief Executive Officer of The Hanover in November 2017. He has over 30 years of experience in the property and casualty insurance industry. Roche joined The Hanover in 2006 and held several senior leadership positions, including president of Hanover Agency Markets, president of business insurance, and various vice president roles in field operations, marketing, distribution, commercial lines underwriting, and product management. Prior to joining The Hanover, he served in senior roles at St. Paul Travelers Companies, Inc., and held underwriting and management positions at Fireman's Fund Insurance Company and Atlantic Mutual Insurance Company.

Jeffrey M. Farber, Executive Vice President, Chief Financial Officer

Jeffrey M. Farber joined The Hanover in October 2016 as Executive Vice President and Chief Financial Officer. With over 30 years of experience in the insurance and financial services industries, he is responsible for finance, accounting, investments, actuarial, enterprise risk management, treasury, investor relations, mergers & acquisitions, and internal audit. Before The Hanover, Farber spent five years at American International Group (AIG) as Deputy Chief Financial Officer and Chief Risk Officer for their commercial and consumer businesses. He also served as Chief Financial Officer of GAMCO Investors, Inc., a publicly traded asset manager, and held senior accounting and finance roles at The Bear Stearns Companies, Inc. Farber began his career at Deloitte & Touche LLP, where he became a partner.

Richard W. Lavey, Executive Vice President, Chief Operating Officer

Richard W. Lavey was appointed Chief Operating Officer in 2025, having joined The Hanover in 2004. He has over 35 years of experience in the insurance and technology industries and plays a key role in developing the company's business strategy and fostering integration between business and technology organizations. Prior to this role, he served as President of Hanover Agency Markets, Chief Growth Innovation Officer, President of Personal Lines, and Chief Marketing Officer. Before joining The Hanover, Lavey was Vice President of strategic initiatives for The Hartford's property and casualty organization and Vice President of strategic marketing for The Hartford's Select Customer division. He also worked at software companies ChannelPoint and Bowstreet, was a strategy consultant for CSC Healthcare, and began his career at The Travelers Insurance Company.

Dennis F. Kerrigan, Executive Vice President, Chief Legal Officer and Corporate Secretary

Dennis F. Kerrigan joined The Hanover in 2020 as Executive Vice President and Chief Legal Officer. He brings decades of general counsel, insurance, and global legal experience to the company, overseeing legal, regulatory and government affairs, compliance, state filings, securities, and corporate governance matters. Previously, Kerrigan served for more than a decade as the North American General Counsel at Zurich North America. He was also a partner in the global litigation department of an international law firm, where he represented Fortune 500 companies in various legal matters.

Bryan J. Salvatore, Executive Vice President and President, Specialty

Bryan J. Salvatore serves as Executive Vice President and President, Specialty for The Hanover Insurance Group.

1. Catastrophe Losses: As a property and casualty insurer, The Hanover is highly exposed to unpredictable and severe weather events, natural disasters, and other catastrophic losses. The frequency and severity of these events can significantly impact the company's earnings visibility, combined ratios, and overall financial results. Climate change is noted as a factor that could exacerbate the unpredictability and intensity of such events.
2. Underwriting Profitability Challenges: The company faces challenges in maintaining underwriting profitability due to intense pricing competition in various lines, particularly in middle-market property and some specialty and marine lines, which can limit margin gains if pricing weakens faster than loss trends improve. Additionally, "social inflation," characterized by rising litigation costs and a more litigious environment, is driving increased claim severity, especially in commercial auto liability, directly pressuring underwriting margins.
3. Investment Risk: The Hanover's financial performance is also influenced by investment income generated from its "float" (premiums collected but not yet paid out as claims). Fluctuations in interest rates, inflationary pressures, and broader economic downturns can adversely affect the returns on its investment portfolio, impacting overall profitability.

The Hanover Insurance Group, Inc. (symbol: THG) operates within the United States property and casualty insurance market. The addressable markets for their main products and services in the U.S. are as follows:

• U.S. Commercial Lines Insurance Market: This market was valued at approximately USD 271.93 billion in 2025.
• U.S. Personal Lines Insurance Market: The total U.S. personal lines market, encompassing homeowners, farmowners, and private auto insurance, reached USD 534.92 billion in 2024.
• U.S. Workers' Compensation Insurance Market: The market for workers' compensation insurance in the United States was approximately USD 57.48 billion in direct premiums written in 2024.
• U.S. Commercial Auto Insurance Market: This market is estimated to be USD 80.1 billion in 2025.
• U.S. Homeowners Insurance Market: The homeowners insurance market in the United States is projected to be USD 175.60 billion in 2025.
• U.S. Personal Auto Insurance Market: Direct written premiums for personal auto insurance in the U.S. reached USD 359 billion in 2024.

Expected Drivers of Future Revenue Growth for Hanover Insurance (THG)

• Continued Price Increases: The Hanover Insurance Group expects further price increases in both its commercial and personal auto liability lines, which are anticipated to support underwriting margins through stable retention and constructive renewal pricing. Strong price increases have also been observed in umbrella, auto, and home coverages, exceeding long-term loss trends. Renewal price increases across Personal Lines, Core Commercial, and Specialty segments have contributed to net premiums written growth.
• Growth in Specialty and Small Commercial Lines: The company plans to leverage growth opportunities in its specialty and small commercial segments. Specialty lines, supported by niche expertise and a focus on smaller accounts, are expected to remain a profitability anchor. Double-digit new business growth in Small Commercial, aided by enhanced agency engagement and the expansion of products like Workers' Compensation Advantage, is a key driver. Expansion in excess and surplus (E&S) and management liability within Specialty lines also shows robust growth. Increased demand for cyber, specialty, and tailored commercial insurance products, driven by digitalization and heightened risk awareness, expands Hanover's addressable markets.
• Geographic Diversification and Focus on Higher-Value Bundled Personal Lines: Hanover is refining its strategy through geographic diversification and concentrating on higher-value bundled accounts within Personal Lines. This includes enhancing existing offerings, selectively expanding risk appetite, pursuing new customer segments, and growing its presence in under-penetrated geographic markets. The company has also repositioned its Personal Lines portfolio by reducing exposure in certain regions and targeting growth in states identified for higher profitability. Furthermore, the recent expansion into life sciences broadens the company's addressable market.
• Investments in Technology and Data Analytics: Strategic technology investments, including AI-enabled triage and upgraded underwriting platforms, are expected to enhance underwriting efficiency and portfolio quality. Sustained investment in advanced technology, data analytics, and AI-driven workflow automation is anticipated to improve risk assessment, accelerate quote turnaround, and boost process efficiency, providing scalability advantages and supporting long-term net margins. The adoption of generative AI and workflow automation is considered essential for streamlining underwriting and claims processes to improve customer and agent experiences.
• Growth in Net Investment Income (NII): Net investment income has been a significant driver of earnings, with substantial increases reported in recent quarters due to higher earned yields within the company's fixed-income portfolio and continued growth in operating cash flows. Management has guided for mid to upper single-digit growth in NII. The strategic management of premium funds through investments helps bolster financial strength and enhances profitability, contributing to sustainable growth.

Share Repurchases

• In May 2021, The Hanover Insurance Group's board of directors increased the existing share repurchase authorization by $400 million, bringing the total authorization to $1.3 billion. At that time, approximately $435 million remained under the expanded program.
• From October 1, 2025, to January 31, 2026, the company repurchased 561,000 shares for $99 million.
• As of February 2026, a share repurchase program initiated on December 30, 2018, was completed, totaling 9,073,341 shares repurchased for approximately $1.17 billion.

Share Issuance

• In February 2026, Executive Vice President David John Lovely received 3,781 stock options and multiple share grants (1,082, 698, and 793 shares) as part of The Hanover Insurance Group's 2022 Long-Term Incentive Plan, which included performance-based and time-based restricted stock units.

Capital Expenditures

• The annual 5-year growth rate for capital expenditures was -12.4%.
• The company allocates capital to business investments, including technology, such as AI-enabled triage and upgraded underwriting platforms, to enhance underwriting efficiency and portfolio quality.