Slides
Page 1
The Hanover Insurance Group, Inc. Fourth Quarter and Full-Year 2025 Results February 3, 2026 1 To be read in conjunction with the press release dated February 3, 2026, and conference call scheduled for February 4, 2026. Please also see important information regarding forward-looking statements and additional risks and uncertainties at the end of this presentation.
Page 2
Excellent Fourth Quarter and Full-Year 2025 Operating Results 2(1) See information about this and other non -GAAP measures and definitions used throughout this presentation on the final pages of this document. *Unless otherwise stated, net premiums written growth and other growth comparisons are to the same period of the prior year. The Hanover Insurance Group, Inc. may also be referred to as “The Hanover” or “the company” interchangeably throughout this p resentation. Fourth quarter highlights • Record fourth quarter net and operating income(1) per diluted share of $5.47 and $5.79, respectively • Net and operating return on equity(2) of 22.7% and 23.1%, respectively • Combined ratio of 89.0%; combined ratio, excluding catastrophes(3), of 87.3% • Catastrophe losses of $27.0 million, or 1.7 points of the combined ratio • Net premiums written increase of 3.0%*, or 4.1% excluding reinstatement premiums(4) • Renewal price increases(5) of 9.4% in Core Commercial, 9.2% in Personal Lines, and 6.4% in Specialty • Rate increases(5) of 7.7% in Core Commercial, 6.3% in Personal Lines, and 4.2% in Specialty • Net investment income of $125.8 million, up 24.9% from the prior-year quarter • Book value per share of $100.90, up 5.1% from September 30, 2025 • On December 1, 2025, the Board of Directors approved an increase of 5.6% to the ordinary quarterly cash dividend Full-year highlights • Record full-year net and operating income per diluted share of $18.16 and $19.09, respectively • Net and operating return on equity of 20.6% and 20.1%, respectively • Combined ratio of 91.6%; combined ratio, excluding catastrophes, of 87.1% • Catastrophe losses of $276.3 million, or 4.5 points of the combined ratio • Net premiums written of $6.3 billion, an increase of 3.9% • Loss and LAE ratio of 60.5%, 3.0 points below the prior year • Current accident year loss and LAE ratio, excluding catastrophes(6), of 57.1%, 1.1 points below the prior year • Net investment income of $454.4 million, up 22.0% from the prior year • Book value per share increased 27.4% from December 31, 2024; excluding net unrealized depreciation on fixed maturity investments, net of tax(7), book value per share increased 15.3%
Page 3
Consolidated Financial Results 3 This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 19. ($ in millions, except per share amounts) December 31, December 31, December 31, December 31, 2024 2025 2024 2025 Net income $167.9 $198.5 $426.0 $662.5 Per diluted share $4.59 $5.47 $11.70 $18.16 Operating income before interest expense and income taxes $254.4 $289.0 $650.1 $933.0 Operating income after income taxes $194.6 $210.1 $485.9 $696.2 Per diluted share $5.32 $5.79 $13.34 $19.09 Book value per share $79.18 $100.90 $79.18 $100.90 Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $90.35 $104.21 $90.35 $104.21 Shareholders' equity $2,841.8 $3,571.5 $2,841.8 $3,571.5 Debt $784.1 $1,218.3 $784.1 $1,218.3 Total capital $3,625.9 $4,789.8 $3,625.9 $4,789.8 Debt/total capital 21.6% 25.4% 21.6% 25.4% Total assets $15,274.5 $16,945.9 $15,274.5 $16,945.9 Net income return on average equity 23.5% 22.7% 16.1% 20.6% Operating income return on average equity 24.4% 23.1% 15.8% 20.1% Year endedThree months ended
Page 4
32.3% 30.8% 30.6% 31.3% 31.8% 56.9% 58.3% 56.1% 57.6% 56.8% 89.2% 89.1% 86.7% 88.9% 88.6% 4Q24 1Q25 2Q25 3Q25 4Q25 Fourth Quarter 2025 Underwriting Results 4 Expense ratio(8) Current accident year loss and LAE ratio, ex-CAT Net premiums written and growth($ in millions) • Combined ratio (CR) of 89.0%, 0.2 points improved from the prior-year quarter • Catastrophe losses of $27.0 million, or 1.7%, which was favorable to the company’s fourth quarter assumption and historical averages • Combined ratio, ex-CAT, of 87.3%, improved 0.2 points from the prior-year quarter, driven by a 0.5- point improvement in the expense ratio • Current accident year loss and LAE ratio, ex-CAT, of 56.8%, slightly improved from the prior-year quarter • Favorable prior-year reserve development, ex-CAT, of $20.1 million, or 1.3 points, with favorability in each segment • Net premiums written growth of 3.0%, or 4.1% excluding reinstatement premiums89.2% 94.1% 92.5% 91.1% 89.0% Current accident year combined ratio, ex-CAT(3) CR: $1,445.1 $1,510.8 $1,583.8 $1,738.9 $1,488.6 ↑ 7.4% ↑ 3.9% ↑ 4.1% ↑ 4.5% ↑ 3.0% 4Q24 1Q25 2Q25 3Q25 4Q25 This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 19.
Page 5
31.3% 31.1% 58.2% 57.1% 89.5% 88.2% FY 24 FY 25 Full-Year 2025 Underwriting Results 5 Expense ratio Current accident year loss and LAE ratio, ex-CAT Net premiums written and growth($ in millions) 94.8% 91.6% Current accident year combined ratio, ex-CAT CR: • Combined ratio of 91.6% in the full year 2025, 3.2 points improved from the prior year • Catastrophe losses of $276.3 million, or 4.5%, which was lower than the prior year and the company’s CAT load assumption, helped by benign weather and property management actions • Combined ratio, ex-CAT, improved 1.3 points from the prior year, primarily driven by a 1.1-point improvement in the current accident year loss and LAE ratio, ex-CAT, reflecting significant improvement in Personal Lines • Expense ratio of 31.1% improved 0.2 points from the prior year, but was above the company’s original expectations, impacted by temporarily higher variable expenses reflecting better-than-expected performance, including lower CAT losses, as well as continued investments in talent and technology • Favorable prior-year reserve development, ex-CAT, of $70.4 million, with favorability in each segment • Thoughtful and prudent in setting current and prior-year reserves for auto liability in both Personal and Commercial Lines • Net premiums written of $6.3 billion in the year, up 3.9% from 2024 $6,083.6 $6,322.1 ↑ 4.7% ↑ 3.9% FY 24 FY 25 This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 19.
Page 6
Core Commercial Underwriting Highlights • Combined ratio, ex-CAT, of 91.3%, improved 2.2 points from the prior-year quarter • Current accident year loss and LAE ratio, ex- CAT, improved 1.5 points compared to the prior-year quarter, primarily reflecting strong property performance • Favorable prior-year reserve development, ex- CAT, of $1.6 million, or 0.3 points, with minor adjustments by line 6 Current accident year combined ratio, ex-CAT Expense ratio Current accident year loss and LAE ratio, ex-CAT Fourth quarter resultsFull-year results ($ in millions) 2024 2025 2024 2025 Net premiums written $500.5 $512.8 $2,195.5 $2,273.7 Growth 7.5% 2.5% 4.2% 3.6% Net premiums earned $549.2 $561.5 $2,148.8 $2,211.0 Combined ratio 95.0% 96.1% 94.4% 97.4% Catastrophe ratio 1.5% 4.8% 3.6% 5.1% Combined ratio, ex-CAT 93.5% 91.3% 90.8% 92.3% Prior-year development ratio (0.5)% (0.3)% (0.8)% (0.3)% Current accident year combined ratio, ex-CAT 94.0% 91.6% 91.6% 92.6% Three months ended Year ended December 31 December 31 35.1% 33.4% 32.9% 33.7% 34.2% 58.9% 61.7% 56.5% 60.6% 57.4% 94.0% 95.1% 89.4% 94.3% 91.6% 4Q24 1Q25 2Q25 3Q25 4Q25 33.8% 33.5% 57.8% 59.1% 91.6% 92.6% FY 24 FY 25 • Combined ratio, ex-CAT, was slightly higher compared to the prior year, primarily reflecting an increase in the loss ratio • Current accident year loss and LAE ratio, ex- CAT, increased 1.3 points from the prior year, primarily driven by a prudent increase in loss picks in commercial auto and workers’ compensation • Expense ratio of 33.5% improved 0.3 points from the prior year, driven primarily by fixed cost leverage from earned premium growth • Favorable prior-year reserve development, ex- CAT, of $7.1 million, or 0.3 points This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 19.
Page 7
85.0% 84.4% 85.1% 84.4% 85.3% 9.2% 9.1% 9.0% 8.7% 7.7% 11.8% 11.1% 10.7% 9.9% 9.4% 5.0% 10.0% 15.0% 70% 75% 80% 85% 4Q24 1Q25 2Q25 3Q25 4Q25 Premium retention Rate Renewal price change Core Commercial Growth Highlights • Net premiums written increased 2.5% in the fourth quarter, or 4.1% excluding reinstatement premiums • Growth of 4.8% in small commercial, reflecting robust new business growth and healthy retention; remain encouraged with the momentum and growth trajectory of the business heading into 2026 • Middle market premium growth accelerated sequentially to 2.6% excluding reinstatement premiums; premium decline of 1.1% including reinstatement premiums • Renewal price increases remained robust at 9.4%, with slight deceleration driven primarily by property lines • Retention remained strong at 85.3% 7 Net premiums written and growth($ in millions) Middle market Small commercial *Retention is defined as the ratio of net retained premium for the noted period to the premium available to renew over the same period. Rate/RPCRetention* $500.5 $512.8 $301.3 $315.7 $199.2 $197.1 ↑ 2.5% 4Q24 4Q25 $1,263.8 $1,325.3 $931.7 $948.4 ↑ 3.6% FY 24 FY 25 $2,195.5 $2,273.7 Fourth quarter resultsFull-year results • Net premiums written growth of 3.6%, with growth of 4.9% in small commercial and 1.8% in middle market • Strong market position and confidence in continued growth in 2026 This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 19.
Page 8
37.6% 37.3% 49.6% 50.1% 87.2% 87.4% FY 24 FY 25 Specialty Underwriting Highlights 8 Current accident year combined ratio, ex-CAT Expense ratio Current accident year loss and LAE ratio, ex-CAT • Combined ratio, ex-CAT, of 84.2%, compared to 80.4% in the prior-year quarter • Current accident year loss and LAE ratio, ex- CAT, was within the company’s expectations and 3.0 points above the prior-year quarter, which saw lower-than-expected property losses • Favorable prior-year reserve development, ex-CAT, of $18.4 million, or 5.3 points, with widespread favorability ($ in millions) 2024 2025 2024 2025 Net premiums written $331.8 $335.8 $1,373.9 $1,441.5 Growth 8.8% 1.2% 6.2% 4.9% Net premiums earned $339.4 $348.9 $1,322.0 $1,398.3 Combined ratio 81.6% 83.9% 86.5% 85.7% Catastrophe ratio 1.2% (0.3)% 2.8% 2.4% Combined ratio, ex-CAT 80.4% 84.2% 83.7% 83.3% Prior-year development ratio (7.0)% (5.3)% (3.5)% (4.1)% Current accident year combined ratio, ex-CAT 87.4% 89.5% 87.2% 87.4% Three months ended Year ended December 31 December 31 Fourth quarter resultsFull-year results 39.0% 37.0% 36.9% 37.2% 38.1% 48.4% 51.1% 49.0% 48.8% 51.4% 87.4% 88.1% 85.9% 86.0% 89.5% 4Q24 1Q25 2Q25 3Q25 4Q25 • Combined ratio, ex-CAT, of 83.3%, an improvement of 0.4 points from the prior year • Favorable prior-year reserve development, ex- CAT, of $56.8 million, or 4.1 points, compared to $46.2 million, or 3.5 points in the prior year • Expense ratio improved 0.3 points from the prior year, primarily driven by fixed cost leverage from earned premium growth • Current accident year loss and LAE ratio, ex- CAT, of 50.1%, was favorable to the company’s low-50s loss ratio target reflecting property favorability This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 19.
Page 9
$106.1 $112.8 $106.1 $95.3 $99.9 $101.4 $19.7 $26.3 ↑ 1.2% 4Q24 4Q25 Professional and executive lines Specialty property and casualty Marine Surety and other 81.9% 80.1% 81.8% 83.2% 81.1% 9.5% 8.4% 7.8% 8.3% 6.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 55% 65% 75% 85% 4Q24 1Q25 2Q25 3Q25 4Q25 Premium retention Renewal price change $440.3 $461.9 $421.3 $420.8 $426.9 $458.2 $85.4 $100.6 ↑ 4.9% FY 24 FY 25 Specialty Growth Highlights • Net premiums written increased 1.2% in the fourth quarter, or 3.6% excluding reinstatement premiums • The company’s emphasis on the small account space continues to yield attractive growth opportunities with strong profitability • Delivered strong, broad-based growth across a number of lines, including E&S, professional and management liability, and surety • Seeing some heightened competition in certain areas of the property market • Renewal price increases remained strong at 6.4%, including rate increases of 4.2%; pricing moderation driven by certain property coverages where profitability has been strong 9 Net premiums written and growth($ in millions) $335.8 *Retention is defined as the ratio of net retained premium for the noted period to the premium available to renew over the same period. RPCRetention* $331.8 Fourth quarter resultsFull-year results $1,441.5$1,373.9 • Net premiums written growth of 4.9% in the full year • Well positioned to capture profitable opportunities and continue delivering strong, profitable growth, supported by investments in talent and technology This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 19.
Page 10
Personal Lines Underwriting Highlights • Combined ratio, ex-CAT, of 85.3%, compared to 85.9% in the prior-year quarter • Current accident year loss and LAE ratio, ex- CAT, improved 0.8 points from the prior-year quarter • Homeowners and Other improved 4.6 points compared to the prior-year quarter, driven by the benefit of rate earning in, as well as lower claims frequency, partially attributable to favorable weather in the quarter • Auto increased modestly compared to the prior-year quarter but approximated the company’s expectations, benefitting from earned pricing increases and lower loss frequency across multiple coverages, partially offset by prudently increased loss picks in bodily injury • Prior-year reserve development, ex-CAT, was favorable $0.9 million, or 0.1 points 10 Current accident year combined ratio, ex-CAT Expense ratio Current accident year loss and LAE ratio, ex-CAT ($ in millions) 2024 2025 2024 2025 Net premiums written $612.8 $640.0 $2,514.2 $2,606.9 Growth 6.6% 4.4% 4.3% 3.7% Net premiums earned $623.0 $646.2 $2,441.8 $2,551.8 Combined ratio 88.1% 85.5% 99.6% 90.0% Catastrophe ratio 2.2% 0.2% 10.7% 5.0% Combined ratio, ex-CAT 85.9% 85.3% 88.9% 85.0% Prior-year development ratio (0.1)% (0.1)% (0.2)% (0.3)% Current accident year combined ratio, ex-CAT 86.0% 85.4% 89.1% 85.3% Three months ended Year ended December 31 December 31 Fourth quarter resultsFull-year results 26.2% 25.3% 25.0% 26.0% 26.4% 59.8% 59.2% 59.8% 59.8% 59.0% 86.0% 84.5% 84.8% 85.8% 85.4% 4Q24 1Q25 2Q25 3Q25 4Q25 25.6% 25.7% 63.5% 59.6% 89.1% 85.3% FY 24 FY 25 • Combined ratio, ex-CAT, improved 3.9 points from the prior year, with the current accident year loss and LAE ratio, ex-CAT, improving 3.9 points, including a 2.2-point improvement in auto, and a 6.4-point improvement in Homeowners and Other This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 19.
Page 11
$2,514.2 $2,606.9 ↑ 3.7% FY 24 FY 25 Personal Lines Growth Highlights • Net premiums written growth of 4.4% in the fourth quarter, a sequential acceleration, driven by strong pricing increases and higher retention • Delivered strong growth of approximately 8% in target diversification states • Renewal price increases of 9.2%, including 12.3% in homeowners and 6.9% in auto, and achieved increases of approximately 20% in umbrella; pricing remains healthy and above loss trend • PIF declined 0.6% sequentially; expect PIF growth in 2026 11 Net premiums written and growth($ in millions) *Retention is defined as the ratio of net retained policies for the noted period to those policies available to renew over the same period and includes policies that were canceled and rewritten. Retention* Rate/RPC Homeowners Retention* Rate/RPC Personal auto Fourth quarter resultsFull-year results $612.8 $640.0 ↑4.4% 4Q24 4Q25 81.3% 81.4% 83.5% 83.2% 82.4% 10.0% 8.2% 6.6% 4.9% 3.7% 13.9% 11.8% 9.8% 8.0% 6.9% 0.0% 10.0% 20.0% 30.0% 65% 70% 75% 80% 85% 4Q24 1Q25 2Q25 3Q25 4Q25 Policy retention Rate Renewal price change 83.2% 82.4% 85.1% 84.8% 83.7% 17.2% 17.1% 10.8% 9.4% 9.9%14.6% 14.9% 15.7% 13.9% 12.3% 0.0% 10.0% 20.0% 30.0% 40.0% 40% 50% 60% 70% 80% 90% 4Q24 1Q25 2Q25 3Q25 4Q25 Policy retention Rate Renewal price change • Net premiums written growth of 3.7% in the full year • Well positioned to capitalize on profitable opportunities in the marketplace: • Successful execution of margin improvement and CAT mitigation initiatives • Most diversification states achieving target profitability • Whole-account offering and Prestige product drive strong customer loyalty
Page 12
$9.0B $9.1B $9.3B $9.6B $9.7B 3.99% 4.08% 4.24% 4.33% 4.41% 4Q24 1Q25 2Q25 3Q25 4Q25 Average invested assets Earned yield Net Investment Income Trends 12 Net investment income*($ in millions) Cash and invested assets *Net investment income from partnerships, equities and other investments also includes net investment expenses. • Net investment income of $125.8 million in the fourth quarter, up 24.9% from the prior-year quarter, reflecting higher earned yields and the continued investment of cashflows • Included temporary benefit of approximately $4 million from the investment of funds from the company’s recent $500 million debt issuance; temporarily elevated cash level will normalize in the first quarter of 2026, as the company repaid approximately $62 million of senior notes that matured in October 2025 and called $375 million of senior notes at par, retired in January 2026 ($ in millions) Fixed maturity investment portfolio trends Fourth quarter results Full-year results $89.9 $93.3 $98.4 $103.3 $106.4 $10.8 $12.8 $7.1 $13.7 $19.4$100.7 $106.1 $105.5 $117.0 $125.8 4Q24 1Q25 2Q25 3Q25 4Q25 Fixed maturities Partnerships, equities and other investments 87% 88% 89% 84% 83% 9% 9% 9% 8% 7%4% 3% 2% 8% 10%$9,845 $10,005 $10,185 $11,283 $11,505 4Q24 1Q25 2Q25 3Q25 4Q25 Fixed maturities Equities, mortgages and other Cash and cash equivalents = $89.9M $93.3M $98.4M $103.3M $106.4M Fixed maturity investment income • Net investment income of $454.4 million in the year, up 22.0% from 2024, reflecting higher earned yields and the continued investment of cashflows
Page 13
6% 3% 1% 12% 18% 57% 3% Equities Mortgage loans Limited partnerships Cash and cash equivalents Other 27% 14% 4%9% 25% 6% 5% 10% Corporates Municipals (taxable) RMBS CMBS U.S. government ABS Investment Portfolio – Total Invested Assets and Cash of $11.5 Billion 13 As of December 31, 2025 • 95% of fixed maturity securities are investment grade • Weighted average quality: A+ • Duration: 4.3 years High-quality, well-laddered fixed income portfolio Equities, cash and other: $2.0 billionFixed maturities: $9.5 billion High-quality, well-diversified investment portfolio Industrials Financials Utilities Marketable securities ETFs Preferred and other * *Higher-than-usual cash and cash equivalents reflects $500 million debt issuance in the third quarter of 2025. The company called $375 million of senior notes at par, which was retired in January 2026
Page 14
Metric Full-year 2026 expectations** Net premiums written growth • Mid-single digit Expense ratio • 30.3% Combined ratio, ex-CAT*** • 88% – 89% Catastrophe loss ratio • 6.5% Net investment income growth • Mid- to upper-single digits The Hanover Insurance Group 2026 Outlook* 14 * Based on year-end 2025 results as reported February 3, 2026 ** See pages 16 and 17 of this presentation for additional risks and uncertainties. Investors are further cautioned and should c onsider the risks and uncertainties in the company’s business that may affect such estimates and future performance that are discussed in the company’s most recently filed reports on Form 10-K and Form 10-Q and other documents filed by The Hanover Insurance Group, Inc. with the Securities and Exchange Commission (“SEC”) *** See information about this and other non-GAAP measures and definitions used throughout this presentation on the final pages of t his document.
Page 15
About The Hanover 15 The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Page 16
Forward-Looking Statements 16 Certain statements in this document and comments made by management may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as, but not limited to, “believes,” “anticipates,” “expects,” “intends,” “may,” “projects,” “projections,” “plan,” “likely,” “potential,” “targeted,” “forecasts,” “should,” “could,” “continue,” “outlook,” “guidance,” “modeling,” “target profitability,” “target margins,” “confident,” “optimistic,” “committed,” “will,” “line of sight,” “clear visibility to,” “designed,” "position us," and other similar expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. The company cautions investors that any such forward-looking statements are estimates, beliefs, expectations and/or projections that involve significant judgment, and that historical results, trends and forward-looking statements are not guarantees and are not necessarily indicative of future performance. Actual results could differ materially from those anticipated. These statements include, but are not limited to, the company’s statements regarding: • The company’s outlook and its ability and confidence in achieving components or the sum of the respective period guidance and/or long-term targets for future results of operations including: the combined ratio, excluding catastrophe losses; catastrophe losses; net investment income; growth of net premiums written, net premiums earned and/or pricing increases in total or by line of business; expense ratio; operating return on equity; interest rate assumptions and investment portfolio management, renewal price change, rate, and/or the effective tax rate; • The company’s ability and timing to deliver on expectations set forth related to target margins, target returns and/or return to target profitability in total or by line of business; • The impacts of general economic and socioeconomic conditions on the company’s operating and financial results, including, but not limited to, the impact on the company’s investment portfolio and capital planning, changes in claims frequency as a result of fluctuations in economic activity, the potential impacts of inflation and other economic factors, and/or claims severity from higher cost of repairs due to, among other things, supply chain disruptions, tariffs and inflation; • Ability to manage the impact of inflationary pressures, global market disruptions, economic conditions, geopolitical events or otherwise, including, but not limited to, supply chain disruptions, tariffs, trade policy, labor shortages, and increases in cost of goods, services, labor, and materials; • Uses, including the timing of uses, of capital for share repurchases, special or ordinary cash dividends, business investments or growth, debt maturities, or otherwise, and outstanding shares in future periods as a result of various share repurchase mechanisms, capital management framework, and overall comfort with liquidity and capital levels; • Catastrophe modeling and variability of catastrophe losses due to risk concentrations, changes in weather patterns, severe weather including hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fires, drought, explosions, severe winter weather and other convective storms, or pandemics, terrorism, civil unrest, riots or other events, as well as the complexity in estimating losses from large catastrophe events due to delayed reporting of the existence, nature or extent of losses or where “demand surge,” regulatory assessments, litigation, coverage and technical complexities or other factors may significantly impact the ultimate amount of such losses; • Current accident year losses and loss selections (picks), excluding catastrophes, and prior accident year loss reserve development patterns, particularly in complex “longer-tail” liability lines, as well as the inherent variability in short-tail property and non-catastrophe weather losses; • Changes in frequency and loss severity trends in Core Commercial, Specialty and/or Personal Lines; • The confidence or concern that the current level of reserves is adequate and/or sufficient for future claim payments, whether due to losses that have been incurred but not reported, circumstances that delay the reporting of losses, business complexity, adverse judgments or developments with respect to case reserves, the difficulties and uncertainties inherent in projecting future losses from historical data, changes in replacement and medical costs, as well as complexities including legislative, regulatory or judicial actions that expand the intended scope of coverages, or other factors; • Characterization of some business as being “more profitable” in light of inherent uncertainty of ultimate losses incurred, especially for “longer-tail” liability businesses; • Efforts to manage expenses, including the company’s long-term expense savings targets, while allocating capital to business investment, which is at management’s discretion; • Our ability to retain profitable policies in force and attract profitable policies, and to increase rates commensurate with, or in excess of, loss trends; • The positive impact of mix improvement, underwriting initiatives, coverage restrictions, non-renewals, changes in terms and conditions, and pricing segmentation, among others, on the company’s results; • The ability to generate growth in targeted businesses, segments, and/or geographies through new agency appointments, rate increases, retention improvements, new business, expansion into geographies, new product introductions, or otherwise, the ability to balance rate actions and retention, as well as the ability to reduce premiums attributable to products, lines of business, or geographies believed to be less profitable; • The ability to offset long-term and/or short-term loss trends due to increased frequency and/or severity; increased “social inflation” from a more litigious environment, lawsuit abuse and higher average cost of resolution; increased property replacement or repair costs; and/or social unrest; and • Investment returns and the effect of macro-economic interest rate trends and overall security yields, including the macro-economic impact of governmental and/or central banking initiatives taken in response to inflationary pressures, and geopolitical circumstances, on new money yields, as well as individual investment and overall investment returns.
Page 17
Additional Risks and Uncertainties 17 Investors are further cautioned and should consider the risks and uncertainties in the company’s business that may affect such estimates and future performance that are discussed in the company’s most recently filed reports on Form 10-K and Form 10-Q and other documents filed by The Hanover Insurance Group, Inc. with the Securities and Exchange Commission (SEC) and that are also available at www.hanover.com under “Investors.” These risks and uncertainties include, but are not limited to: • Changes in regulatory, legislative, economic, market and political conditions, particularly with respect to rates, competition, the use of data, technology, artificial intelligence (AI), cybersecurity, policy terms and conditions, restrictions on cancellations and/or non-renewals, payment flexibility, and regions where the company has geographical concentrations; • Heightened financial market volatility, fluctuations in interest rates (which have a significant impact on the market value of our investment portfolio and thus our book value), inflationary pressures, default rates, tariffs, difficult economic, market and geopolitical conditions, and other factors that affect investment returns from the investment portfolio; • Recessionary economic periods that may inhibit the company’s ability to increase pricing or renew business, or otherwise impact the company’s results, and which may be accompanied by higher claims activity in certain lines; • Data security and privacy incidents, including, but not limited to, those resulting from malicious cybersecurity attacks on the company or its business partners and service providers, or intrusions into the company’s information network systems, including cloud-based data information storage, or data sources; • Adverse claims experience, including those driven by large or increased frequency and/or severity of catastrophe events, including those related to hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fires, drought, explosions, severe winter weather and other convective storms, or due to terrorism, civil unrest, riots, or cybersecurity events (including from products not intended to provide cyber coverage); • The limitations and assumptions used to model non-catastrophe property and casualty losses (particularly with respect to products with longer-tail liability lines, such as casualty and bodily injury claims, or involving emerging issues related to losses incurred as the result of new lines of business or reinsurance contracts and reinsurance recoverables), leading to potential adverse development of loss and loss adjustment expense reserves; • Impacts of changing climate conditions and weather patterns causing higher levels of losses from weather events to persist and leading to new or enhanced regulations; • Litigation and the possibility of adverse judicial decisions, including those which expand policy coverage beyond its intended scope and/or award “bad faith” or other non-contractual damages, and the impact of “social inflation” and third-party litigation funding affecting judicial awards and settlements; • The ability to increase or maintain insurance rates in line with anticipated loss costs and/or governmental action, including mandates by state departments of insurance to either raise or lower rates, or provide credits or return premium to insureds; • Investment impairments, which may be affected by, among other things, the company’s ability and willingness to hold investment assets until they recover in value, as well as credit and interest rate risk, and general financial and economic conditions; • Disruption of the independent agency channel or its operating model, including the impact of competition and consolidation in the industry and among agents and brokers, and the impact of AI tools; • Competition, particularly from competitors who have resource and capability advantages, including the advancing use of AI technology; • The global macroeconomic environment, including inflation, recessionary effects, global trade disputes, war, energy market disruptions, equity price risk, tariffs, and interest rate fluctuations, which, among other things, could result in reductions in market values of fixed maturities and other investments, and/or increases in loss costs; • Adverse state and federal regulation, legislative and/or regulatory actions (including significant revisions to Michigan’s automobile personal injury protection system and related litigation, and various regulations, orders and proposed legislation regarding bad faith, premium grace periods and returns, changes to policy terms and conditions, and rate actions); • Financial ratings actions, in particular, downgrades to the company’s ratings; • Operational and technology risks and evolving technological and product innovation, including risks created by remote work environments, the evolving use of AI, and cybersecurity threats; • Uncertainties in estimating indemnification liabilities recorded in conjunction with obligations undertaken in connection with the sale of various businesses and discontinued operations; and • The ability to collect from reinsurers, reinsurance availability and pricing, and reinsurance terms and conditions. Investors should not place undue reliance on forward-looking statements, which speak only as of the date they are made and should understand the risks and uncertainties inherent in or particular to the company’s business. The company does not undertake the responsibility to update or revise such forward-looking statements, except as required by law.
Page 18
Non-GAAP Financial Measures 18 Non-GAAP Financial Measures As discussed on page 39 of the company’s Annual Report on Form 10-K for the year ended December 31, 2024, the company uses non-GAAP financial measures as important measures of its operating performance, including operating income, operating income before interest expense and income taxes, operating incom e per diluted share, and components of the combined ratio, both excluding and/or including catastrophe losses, prior-year reserve development and the expense ratio. Management believes these non-GAAP financial measures are important indications of the company’s operating performance. The definition of other non-GAAP financial measures and terms can be found in the 2024 Annual Report on pages 62-65. Operating income and operating income per diluted share are non-GAAP measures. They are defined as net income excluding the after-tax impact of net realized and unrealized investment gains (losses), gains and/or losses on the repayment of debt, other non-operating items, and results from discontinued operations. Net realized and unrealized investment gains (losses), which include changes in the fair value of equity securities still held, are excluded for purposes of presenting operating income, as they are, to a certain extent, determined by interest rates, financial markets and the timing of sales. Operating income also excludes net gains and losses from disposals of businesses, gains and losses related to the repayment of debt, costs to acquire businesses, restructuring costs, the cumulative effect of accounting changes, and certain other items. Operating income is the sum of the segment income from: Core Commercial, Specialty, Personal Lines, and Other, after interest expense and income taxes. In reference to one of the company’s four reporting segme nts, “operating income” is the segment income before both interest expense and income taxes. The company also uses “operating income per diluted share” (which is after both interest expense and income taxes). Operating income per share is calculated by dividing operating income by the weighted average number of diluted shares of common stock. Operating loss per share is calculated by dividing operating loss by the weighted average number of basic shares of common stock due to antidilution. The company believes that metrics of operating income in relation to its four reporting segments provide investors with a valuable measure of the performance of the company’s continuing businesses because they highlight the portion of net income attributable to the core operations of the business. Income from continuing operations is the most directly comparable GAAP measure for operating income (and operating income before income taxes) and measures of operating income that exclude the effects of catastrophe losses and/or prior-year reserve development. These non-GAAP measures should not be misconstrued as substitutes for income from continuing operations or net income determined in accordance with GAAP. A reconciliation of operating income to income from continuing operations and net income for the relevant periods is included on page 19 of this presentation and in the Financial Supplement. Operating return on average equity (ROE) is a non-GAAP measure. See end note (2) for a detailed explanation of how this measure is calculated. Operating ROE is based on non-GAAP operating income. In addition, the portion of shareholder equity attributed to unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is excluded. The company believes this measure is helpful in that it provides insight to the capital used by, and results of, the continuing business exclusive of interest expense, income taxes, and other non-operating items. These measures should not be misconstrued as substitutes for GAAP ROE, which is based on net income and shareholders’ equity of the entire company and without adjustments. Book value per share is total shareholders’ equity divided by the number of common shares outstanding. Book value per share excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure and is total shareholders’ equity excluding the after-tax effect of unrealized appreciation (depreciation) on fixed maturities and market risk divided by the number of common shares outstanding. The company may provide measures of operating income and combined ratios that exclude the impact of catastrophe losses (which in all respects include prior accident year catastrophe loss development). A catastrophe is a severe loss, resulting from natural or manmade events including, but is not limited to, hurricanes, tornadoes and other windstorms, hail, flood, earthquakes, fires, drought, explosions, severe winter weather and other convective storms, riots, and terrorism. Due to the unique characteristics of each catastrophe loss, there is an inherent inability to reasonably estimate the timing or loss amount in advance. The company believes a separate discussion excluding the effects of catastrophe losses is meaningful to understand the underlying trends and variability of earnings, loss and combined ratio results, among others. Prior accident year reserve development, which can either be favorable or unfavorable, represents changes in the company’s estimate of costs related to claims from prior years. Calendar year loss and loss adjustment expense (LAE) ratios determined in accordance with GAAP, excluding prior accident year reserve development, are sometimes referred to as “current accident year loss ratios.” The company believes a discussion of loss and combined ratios excluding prior accident year reserve development is helpful since it provides insight into both estimates of current accident year results and the accuracy of prior-year estimates. The loss and combined ratios in accordance with GAAP are the most directly comparable GAAP measures for the loss and combined ratios calculated excluding the effects of catastrophe losses and/or prior-year reserve development. The presentation of loss and combined ratios calculated excluding the effects of catastrophe losses and/or prior-year reserve development should not be misconstrued as substitutes for the loss and/or combined ratios determined in accordance with GAAP.
Page 19
End notes 19 (1) Operating income and operating income per diluted share are non-GAAP measures. These and other non-GAAP measures are used throughout this document. See the disclosure on the use of this and other non-GAAP measures under the headings “Forward- Looking Statements” and “Non-GAAP Financial Measures.” The following table provides the reconciliation of operating income and operating income per diluted share to the most directly comparable GAAP measures, income from continuing operations and income from continuing operations per diluted share, respectively, and to net income and net income per diluted share, respectively. The Hanover Insurance Group, Inc. ($ in millions, except per share data) Operating income Core Commercial $ 75.1 $ 71.0 $ 250.9 $ 281.6 Specialty 82.1 83.3 296.1 257.7 Personal Lines 127.1 101.1 379.8 111.3 Other 4.7 (1.0) 6.2 (0.5) Total 289.0 254.4 933.0 650.1 Interest expense (14.5) (8.5) (43.2) (34.1) Operating income before income taxes 274.5 $ 7.57 245.9 $ 6.72 889.8 $ 24.40 616.0 $ 16.91 Income tax expense on operating income (64.4) (1.78) (51.3) (1.40) (193.6) (5.31) (130.1) (3.57) Operating income after income taxes 210.1 5.79 194.6 5.32 696.2 19.09 485.9 13.34 Non-operating items: Net realized losses from sales and other (18.0) (0.50) (29.0) (0.79) (61.7) (1.69) (84.2) (2.31) Net change in fair value of equity securities and other 1.4 0.04 (5.1) (0.14) 18.8 0.52 14.2 0.39 Impairments on investments: Credit-related impairments (0.1) - (0.3) (0.01) (2.6) (0.07) (3.6) (0.10) Losses on intent to sell securities - - - - (0.5) (0.02) (2.2) (0.06) Total impairments on investments (0.1) - (0.3) (0.01) (3.1) (0.09) (5.8) (0.16) Other non-operating items - - - - - - (2.4) (0.07) Income tax benefit on non-operating items 3.6 0.10 7.1 0.19 10.5 0.29 17.6 0.49 Income from continuing operations, net of taxes 197.0 5.43 167.3 4.57 660.7 18.12 425.3 11.68 Discontinued operations (net of taxes): Income (loss) from discontinued life businesses 1.2 0.03 (0.1) - 1.5 0.03 - - Income from discontinued Chaucer business 0.3 0.01 0.7 0.02 0.3 0.01 0.7 0.02 Net income $ 198.5 $ 5.47 $ 167.9 $ 4.59 $ 662.5 $ 18.16 $ 426.0 $ 11.70 Dilutive weighted average shares outstanding 36.3 36.6 36.5 36.4 Basic weighted average shares outstanding 35.5 36.0 35.8 35.9 Three months ended December 31 Year ended December 31 2025 2024 2025 2024 $ Amount Per Share (Diluted) $ Amount Per Share (Diluted) $ Amount Per Share (Diluted) $ Amount Per Share (Diluted)
Page 20
End notes continued 20 (2) Operating return on average equity (operating ROE) is a non-GAAP measure. Operating ROE is calculated by dividing annualized operating income after tax for the applicable period (see end note (1)), by average shareholders’ equity, excluding unrealized appreciation (depreciation) on fixed maturity investments, net of tax, for the period presented. Total shareholders’ equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is also a non-GAAP measure. Total shareholders’ equity is the most directly comparable GAAP measure and is reconciled below. For the calculation of operating ROE, the average of beginning and ending shareholders’ equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is used for the period as shown in the table below. *For three months ended December 31, 2025, and 2024, annualized net income and operating income after taxes is calculated by multiplying three months ended net income and operating income after taxes, respectively, by 4 ($ in millions) December 31 March 31 June 30 September 30 December 31 March 31 June 30 September 30 December 31 2023 2024 2024 2024 2024 2025 2025 2025 2025 Total shareholders' equity (GAAP) $ 2,465.6 $ 2,522.7 $ 2,552.2 $ 2,877.7 $ 2,841.8 $ 3,044.4 $ 3,216.3 $ 3,426.3 $ 3,571.5 Less: net unrealized appreciation (depreciation) on fixed maturity investments, net of tax (462.4) (495.5) (488.7) (248.8) (401.1) (290.9) (234.7) (147.1) (117.1) Total shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $ 2,928.0 $ 3,018.2 $ 3,040.9 $ 3,126.5 $ 3,242.9 $ 3,335.3 $ 3,451.0 $ 3,573.4 $ 3,688.6 Quarter Averages Average shareholders' equity (GAAP) $ 2,859.8 $ 3,498.9 Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $ 3,184.7 $ 3,631.0 Year-to-date Averages Average shareholders' equity (GAAP) $ 2,652.0 $ 3,220.1 Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $ 3,071.3 $ 3,458.2 Period Ended ($ in millions) Net Income ROE 2024 2025 2024 2025 Net income (GAAP) 167.9$ 198.5$ 426.0$ 662.5$ Annualized net income* 671.6 794.0 Average shareholders' equity (GAAP) 2,859.8 3,498.9 2,652.0 3,220.1 Return on equity 23.5 % 22.7 % 16.1 % 20.6 % Operating Income ROE (non-GAAP) Operating income after income taxes 194.6$ 210.1$ 485.9$ 696.2$ Annualized operating income, net of tax* (end note (1)) 778.4 840.4 Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax 3,184.7 3,631.0 3,071.3 3,458.2 Operating return on equity 24.4 % 23.1 % 15.8 % 20.1 % Year endedThree months ended December 31 December 31
Page 21
End notes continued 21 (3) Combined ratio, excluding catastrophes, and current accident year combined ratio, excluding catastrophes, are non-GAAP measures. The combined ratio (which includes catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. A reconciliation of the GAAP combined ratio to the combined ratio, excluding catastrophes, and to the current accident year combined ratio, excluding catastrophes, is shown below. Consolidated December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 December 31, 2024 December 31, 2025 Total combined ratio (GAAP) 89.2% 94.1% 92.5% 91.1% 89.0% 94.8% 91.6% Less: Catastrophe ratio 1.7% 6.3% 7.0% 3.0% 1.7% 6.4% 4.5% Combined ratio, excluding catastrophe losses (non-GAAP) 87.5% 87.8% 85.5% 88.1% 87.3% 88.4% 87.1% Less: Prior-year reserve development ratio (1.7)% (1.3)% (1.2)% (0.8)% (1.3)% (1.1)% (1.1)% Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 89.2% 89.1% 86.7% 88.9% 88.6% 89.5% 88.2% Core Commercial Total combined ratio (GAAP) 95.0% 103.4% 93.0% 97.3% 96.1% 94.4% 97.4% Less: Catastrophe ratio 1.5% 8.5% 4.1% 3.2% 4.8% 3.6% 5.1% Combined ratio, excluding catastrophe losses (non-GAAP) 93.5% 94.9% 88.9% 94.1% 91.3% 90.8% 92.3% Less: Prior-year reserve development ratio (0.5)% (0.2)% (0.5)% (0.2)% (0.3)% (0.8)% (0.3)% Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 94.0% 95.1% 89.4% 94.3% 91.6% 91.6% 92.6% Specialty Total combined ratio (GAAP) 81.6% 87.7% 86.5% 84.9% 83.9% 86.5% 85.7% Less: Catastrophe ratio 1.2% 4.3% 4.1% 1.7% (0.3)% 2.8% 2.4% Combined ratio, excluding catastrophe losses (non-GAAP) 80.4% 83.4% 82.4% 83.2% 84.2% 83.7% 83.3% Less: Prior-year reserve development ratio (7.0)% (4.7)% (3.5)% (2.8)% (5.3)% (3.5)% (4.1)% Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 87.4% 88.1% 85.9% 86.0% 89.5% 87.2% 87.4% Personal Lines Total combined ratio (GAAP) 88.1% 89.7% 95.5% 89.2% 85.5% 99.6% 90.0% Less: Catastrophe ratio 2.2% 5.6% 11.1% 3.5% 0.2% 10.7% 5.0% Combined ratio, excluding catastrophe losses (non-GAAP) 85.9% 84.1% 84.4% 85.7% 85.3% 88.9% 85.0% Less: Prior-year reserve development ratio (0.1)% (0.4)% (0.4)% (0.1)% (0.1)% (0.2)% (0.3)% Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 86.0% 84.5% 84.8% 85.8% 85.4% 89.1% 85.3% Three months ended Year ended
Page 22
End notes continued 22 (4) Net premiums written, excluding reinstatement premiums, is a non-GAAP measure. Net premiums written (which includes reinstatement premiums) is the most directly comparable GAAP measure. A reconciliation of GAAP net premiums written to net premiums written, excluding reinstatement premiums, is shown below. (5) Renewal price changes in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the estimated net effect of base rate changes, discretionary pricing, specific inflationary changes or changes in policy level exposure or insured risks. Rate increases in Core Commercial and Specialty represent the average change in premium on renewed policies caused by the base rate changes, discretionary pricing, and inflation, excluding the impact of changes in policy level exposure or insured risks. Renewal price change in Personal Lines represents the average change in premium on policies charged at renewal caused by the net effects of filed rate, inflation adjustments or other changes in policy level exposure or insured risks, regardless of whether or not the policies are retained for the duration of their contractual terms. Rate change in Personal Lines is the estimated cumulative premium effect of approved rate actions applied to policies at renewal, regardless of whether or not policies are actually renewed. Accordingly, rate changes do not represent actual increases or decreases realized by the company. Personal Lines rate changes do not include inflation or changes in policy level exposure or insured risks.
Page 23
End notes continued 23 (6) Current accident year loss and LAE ratio, excluding catastrophe losses, is a non-GAAP measure, which is equal to the loss and LAE ratio (loss ratio), excluding prior-year reserve development and catastrophe losses. The loss ratio (which includes losses, LAE, catastrophe losses and prior-year loss reserve development) is the most directly comparable GAAP measure. A reconciliation of the GAAP loss ratio to the current accident year loss and LAE ratio, excluding catastrophe losses is shown below. Consolidated December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 December 31, 2024 December 31, 2025 Total Loss and LAE ratio (GAAP) 56.9% 63.3% 61.9% 59.8% 57.2% 63.5% 60.5% Less: Prior-year reserve development ratio (1.7)% (1.3)% (1.2)% (0.8)% (1.3)% (1.1)% (1.1)% Less: Catastrophe ratio 1.7% 6.3% 7.0% 3.0% 1.7% 6.4% 4.5% Current accident year loss and LAE ratio, excluding catastrophes (non-GAAP) 56.9% 58.3% 56.1% 57.6% 56.8% 58.2% 57.1% Core Commercial Total Loss and LAE ratio (GAAP) 59.9% 70.0% 60.1% 63.6% 61.9% 60.6% 63.9% Less: Prior-year reserve development ratio (0.5)% (0.2)% (0.5)% (0.2)% (0.3)% (0.8)% (0.3)% Less: Catastrophe ratio 1.5% 8.5% 4.1% 3.2% 4.8% 3.6% 5.1% Current accident year loss and LAE ratio, excluding catastrophes (non-GAAP) 58.9% 61.7% 56.5% 60.6% 57.4% 57.8% 59.1% Specialty Total Loss and LAE ratio (GAAP) 42.6% 50.7% 49.6% 47.7% 45.8% 48.9% 48.4% Less: Prior-year reserve development ratio (7.0)% (4.7)% (3.5)% (2.8)% (5.3)% (3.5)% (4.1)% Less: Catastrophe ratio 1.2% 4.3% 4.1% 1.7% (0.3)% 2.8% 2.4% Current accident year loss and LAE ratio, excluding catastrophes (non-GAAP) 48.4% 51.1% 49.0% 48.8% 51.4% 49.6% 50.1% Personal Lines Total Loss and LAE ratio (GAAP) 61.9% 64.4% 70.5% 63.2% 59.1% 74.0% 64.3% Less: Prior-year reserve development ratio (0.1)% (0.4)% (0.4)% (0.1)% (0.1)% (0.2)% (0.3)% Less: Catastrophe ratio 2.2% 5.6% 11.1% 3.5% 0.2% 10.7% 5.0% Current accident year loss and LAE ratio, excluding catastrophes (non-GAAP) 59.8% 59.2% 59.8% 59.8% 59.0% 63.5% 59.6% Three months ended Year ended
Page 24
End notes continued 24 (7) Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is a non-GAAP measure. Book value per share is the most directly comparable GAAP measure and is reconciled in the table below. (8) Here, and throughout this document, the expense ratio is reduced by installment and other fee revenues for purposes of the ratio calculation. December 31 September 30 December 31 2024 2025 2025 79.18$ 96.00$ 100.90$ (11.17) (4.13) (3.31) 90.35$ 100.13$ 104.21$ Versus prior quarter Change in book value per share 5.1 % 4.1 % Versus prior-year end Change in book value per share 27.4 % 15.3 % Period ended Change in book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax Book value per share Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax Change in book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax Less: Net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, per share