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Third Quarter 2026 Results October 28, 2026 To be read in conjunction with the press release dated October 28, 2026, and conference call scheduled for October 29, 2026. Please also see important information regarding forward-looking statements and additional risks and uncertainties at the end of this presentation.
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2 Excellent Third Quarter 2026 Operating Results • Net and operating income(1) per diluted share of $4.86 and $5.15, respectively • Net and operating return on equity(2) of 19.4% and 18.7%, respectively • Combined ratio of 92.3%; combined ratio, excluding catastrophes(3), of 85.5% • Catastrophe losses of $109.7 million, or 6.8 points of the combined ratio • Net premiums written increase of 3.1%* • Renewal price increases(4) of 8.7% in Personal Lines, 7.4% in Core Commercial and 4.3% in Specialty • Rate increases(4) of 6.1% in Core Commercial, 4.9% in Personal Lines and 1.9% in Specialty • Loss and loss adjustment expense (LAE) ratio of 61.4%, 1.6 points higher than the prior-year quarter, driven by higher catastrophe losses • Current accident year loss and LAE ratio, excluding catastrophes(5), of 55.7%, 1.9 points below the prior-year quarter • Net investment income of $131.9 million, up 12.7% from the prior-year quarter • Book value per share of $99.69, down 5.4% from June 30, 2026; excluding net unrealized depreciation on fixed maturity investments, net of tax(6), book value per share increased 2.7% • The company repurchased approximately 386,000 shares of common stock in the third quarter of 2026, totaling approximately $86 million. Year-to-date through October 26, 2026, the company repurchased approximately 1,334,000 shares of common stock, totaling approximately $263 million (1) See information about this and other non -GAAP measures and definitions used throughout this presentation on the final pages of this document. *Unless otherwise stated, net premiums written growth and other growth comparisons are to the same period of the prior year. The Hanover Insurance Group, Inc. may also be referred to as “The Hanover” or “the company” interchangeably throughout this p resentation. Third Quarter 2026 Results
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3 Consolidated Financial Results This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 16. ($ in millions, except per share amounts) September 30, September 30, September 30, September 30, 2025 2026 2025 2026 Net income $178.7 $172.6 $464.0 $551.0 Per diluted share $4.90 $4.86 $12.70 $15.43 Operating income before interest expense and income taxes $247.7 $244.4 $644.0 $746.5 Operating income after income taxes $185.6 $183.1 $486.1 $560.8 Per diluted share $5.09 $5.15 $13.31 $15.70 Book value per share $96.00 $99.69 $96.00 $99.69 Book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $100.13 $114.26 $100.13 $114.26 Shareholders' equity $3,426.3 $3,441.5 $3,426.3 $3,441.5 Debt $1,279.8 $844.2 $1,279.8 $844.2 Total capital $4,706.1 $4,285.7 $4,706.1 $4,285.7 Debt/total capital 27.2% 19.7% 27.2% 19.7% Total assets $16,774.2 $17,043.7 $16,774.2 $17,043.7 Net income return on equity 21.5% 19.4% 19.8% 20.6% Operating income return on equity 21.1% 18.7% 19.1% 19.6% Nine months endedThree months ended Third Quarter 2026 Results
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4 31.3% 31.8% 30.7% 31.0% 30.9% 57.6% 56.8% 56.3% 55.8% 55.7% 88.9% 88.6% 87.0% 86.8% 86.6% 3Q25 4Q25 1Q26 2Q26 3Q26 • Combined ratio (CR) of 92.3%, compared to 91.1% in the prior-year quarter • Catastrophe losses of $109.7 million, or 6.8%, net of 0.7 points of favorable prior-year CAT development, approximating the company’s guidance for the third quarter • Combined ratio, ex-CAT, of 85.5%, improved 2.6 points from the prior-year quarter • Current accident year loss and LAE ratio, ex-CAT, of 55.7%, improved 1.9 points from the prior-year quarter, with year-over-year improvement in each segment • Expense ratio of 30.9% improved 0.4 points from the prior-year quarter, but was higher than the company’s expectations, primarily reflecting higher variable compensation expenses due to better-than-expected results to date • Favorable prior-year reserve development, ex- CAT, of $18.3 million, or 1.1 points, including favorability across each segment • Net premiums written growth of 3.1% Third Quarter 2026 Underwriting Results Expense ratio(7) Current accident year loss and LAE ratio, ex-CAT Net premiums written and growth($ in millions) 91.1% 89.0% 91.7% 91.2% 92.3% Current accident year combined ratio, ex-CAT(3) CR: 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 16. $1,738.9 $1,488.6 $1,559.7 $1,656.8 $1,792.5 ↑ 4.5% ↑ 3.0% ↑ 3.2% ↑ 4.6% ↑ 3.1% 3Q25 4Q25 1Q26 2Q26 3Q26 Third Quarter 2026 Results
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5 33.7% 34.2% 32.7% 32.5% 32.7% 60.6% 57.4% 58.8% 58.7% 60.5% 94.3% 91.6% 91.5% 91.2% 93.2% 3Q25 4Q25 1Q26 2Q26 3Q26 • Combined ratio, ex-CAT, of 92.7%, improved 1.4 points from the prior-year quarter • Current accident year loss and LAE ratio, ex-CAT, of 60.5%, slightly improved from the prior-year quarter: • The company remains prudent in liability loss ratio selections • Property losses were sequentially higher compared to the second quarter of 2026, driven by seasonality • Expense ratio of 32.7%, improved 1.0 point from the prior-year quarter, primarily reflecting fixed cost leverage and efficiencies • Favorable prior-year reserve development, ex-CAT, of $3.0 million, or 0.5 points Core Commercial Underwriting Highlights Current accident year combined ratio, ex-CAT Expense ratio Current accident year loss and LAE ratio, ex-CAT This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 16. ($ in millions) 2025 2026 2025 2026 Net premiums written $620.3 $648.9 $1,760.9 $1,854.1 Growth 3.5% 4.6% 3.9% 5.3% Net premiums earned $554.2 $582.2 $1,649.5 $1,725.3 Combined ratio 97.3% 100.5% 97.8% 97.7% Catastrophe ratio 3.2% 7.8% 5.2% 5.9% Combined ratio, ex-CAT 94.1% 92.7% 92.6% 91.8% Prior-year development ratio (0.2)% (0.5)% (0.3)% (0.3)% Current accident year combined ratio, ex-CAT 94.3% 93.2% 92.9% 92.1% Three months ended Nine months ended September 30 September 30 Third Quarter 2026 Results
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6 $333.5 $342.8 $286.8 $306.1 ↑ 4.6% 3Q25 3Q26 • Net premiums written increased 4.6% in the third quarter, including growth of 2.8% in small commercial and 6.7% in middle market: • Retention was very strong at 86.3%, improving sequentially and year-over- year • Remain encouraged by the company’s market position, supported by advanced underwriting tools and technology, a disciplined focus on smaller-sized customers, and strong agency relationships • Renewal price increases remained healthy at 7.4%, including rate increases of 6.1% Core Commercial Growth Highlights Net premiums written and growth($ 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* $620.3 $648.9 84.4% 85.3% 85.2% 85.7% 86.3% 8.7% 7.7% 7.5% 7.0% 6.1% 9.9% 9.4% 8.6% 7.8% 7.4% 0.0% 5.0% 10.0% 15.0% 70% 75% 80% 85% 3Q25 4Q25 1Q26 2Q26 3Q26 Premium retention Rate Renewal price change Third Quarter 2026 Results
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7 37.2% 38.1% 36.4% 37.0% 36.9% 48.8% 51.4% 49.0% 51.6% 47.7% 86.0% 89.5% 85.4% 88.6% 84.6% 3Q25 4Q25 1Q26 2Q26 3Q26 • Combined ratio, ex-CAT, of 80.6%, improved 2.6 points from the prior-year quarter • Current accident year loss and LAE ratio, ex-CAT, of 47.7%, improved 1.1 points from a very strong third quarter 2025 result and was favorable to the company’s expectations for the segment, helped by lower-than-expected property losses • Favorable prior-year reserve development, ex-CAT, of $14.8 million, or 4.0 points, with widespread favorability Specialty Underwriting Highlights Current accident year combined ratio, ex-CAT Expense ratio Current accident year loss and LAE ratio, ex-CAT This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 16. ($ in millions) 2025 2026 2025 2026 Net premiums written $379.2 $391.6 $1,105.7 $1,142.7 Growth 8.3% 3.3% 6.1% 3.3% Net premiums earned $353.9 $369.5 $1,049.4 $1,095.2 Combined ratio 84.9% 84.0% 86.3% 85.6% Catastrophe ratio 1.7% 3.4% 3.4% 2.9% Combined ratio, ex-CAT 83.2% 80.6% 82.9% 82.7% Prior-year development ratio (2.8)% (4.0)% (3.7)% (3.6)% Current accident year combined ratio, ex-CAT 86.0% 84.6% 86.6% 86.3% Three months ended Nine months ended September 30 September 30 Third Quarter 2026 Results
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8 83.2% 81.1% 83.3% 82.1% 83.2% 8.3% 6.4% 4.6% 3.6% 4.3% 0.0% 5.0% 10.0% 15.0% 55% 65% 75% 85% 3Q25 4Q25 1Q26 2Q26 3Q26 Premium retention Renewal price change $145.2 $147.0 $120.0 $130.9 $86.3 $83.6 $27.7 $30.1 ↑ 3.3% 3Q25 3Q26 Marine and industrial property Professional and executive lines E&S and alternative markets Surety and other • Net premiums written increased 3.3% in the third quarter: • Delivered strong growth across a number of lines, including in surety, E&S, management and professional liability, and marine • Measured posture in areas facing elevated competition, particularly property lines • Renewal price increases remained healthy, accelerating slightly to 4.3%, including rate increases of 1.9% Specialty Growth Highlights $391.6 *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* $379.2 Net premiums written and growth($ in millions) Third Quarter 2026 Results
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9 • Combined ratio, ex-CAT, of 81.8%, improved 3.9 points from the prior-year quarter • Current accident year loss and LAE ratio, ex- CAT, improved 3.8 points from the prior-year quarter: • Auto improved 1.2 points compared to the prior-year quarter, benefitting from earned pricing increases and benign property loss frequency, particularly in collision coverages • Homeowners and Other improved 6.6 points compared to the prior-year quarter, to 40.6%, driven by the benefit of earned rate, favorable loss frequency, lower large losses, as well as lower non-catastrophe weather • Favorable prior-year reserve development, ex- CAT, of $0.7 million, or 0.1 point, with favorability in homeowners and auto, both driven by property coverages Personal Lines Underwriting Highlights Current accident year combined ratio, ex-CAT Expense ratio Current accident year loss and LAE ratio, ex-CAT This page contains non-GAAP financial measures. For reconciliation to the closest GAAP measures, please refer to the endnotes in this presentation starting on page 16. ($ in millions) 2025 2026 2025 2026 Net premiums written $739.4 $752.0 $1,966.9 $2,012.2 Growth 3.6% 1.7% 3.4% 2.3% Net premiums earned $642.6 $659.8 $1,905.6 $1,959.2 Combined ratio 89.2% 89.7% 91.4% 90.0% Catastrophe ratio 3.5% 7.9% 6.7% 8.5% Combined ratio, ex-CAT 85.7% 81.8% 84.7% 81.5% Prior-year development ratio (0.1)% (0.1)% (0.3)% (1.0)% Current accident year combined ratio, ex-CAT 85.8% 81.9% 85.0% 82.5% Three months ended Nine months ended September 30 September 30 26.0% 26.4% 25.7% 26.3% 25.9% 59.8% 59.0% 58.1% 55.6% 56.0% 85.8% 85.4% 83.8% 81.9% 81.9% 3Q25 4Q25 1Q26 2Q26 3Q26 Third Quarter 2026 Results
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10 • Net premiums written growth of 1.7% in the third quarter, moderating from the second quarter: • The company continues to intentionally shift towards the higher-value customer segment ($500K+ coverage A), where growth was 4% and PIF grew slightly year-over-year • Renewal price increases of 8.7%, including 10.9% in homeowners and 7.1% in auto, consistent with the second quarter. Pricing remains healthy and above loss trend • Policies in force (PIF) were essentially flat sequentially • Well-positioned to capitalize on profitable opportunities in the marketplace: • Successful execution of margin improvement and CAT mitigation initiatives • Most states achieving target profitability • Full-account offering and Prestige product drive strong customer loyalty and retention Personal Lines Growth Highlights Net premiums written and growth($ 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 $739.4 $752.0 ↑1.7% 3Q25 3Q26 83.2% 82.4% 81.2% 82.5% 83.1% 4.9% 3.7% 3.2% 4.0% 4.1% 8.0% 6.9% 6.7% 7.1% 7.1% 0.0% 10.0% 20.0% 65% 70% 75% 80% 85% 3Q25 4Q25 1Q26 2Q26 3Q26 Policy retention Rate Renewal price change 84.8% 83.7% 82.4% 84.6% 85.3% 9.4% 9.9% 5.8% 5.9% 6.0% 13.9% 12.3% 10.8% 10.9% 10.9% 0.0% 10.0% 20.0% 40% 50% 60% 70% 80% 90% 3Q25 4Q25 1Q26 2Q26 3Q26 Policy retention Rate Renewal price change Third Quarter 2026 Results
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11 $9.6B $9.7B $9.9B $10.3B $10.4B 4.33% 4.41% 4.42% 4.45% 4.58% 3Q25 4Q25 1Q26 2Q26 3Q26 Average invested assets Earned yield • Net investment income of $131.9 million in the third quarter, up 12.7% from the prior-year quarter, reflecting the continued investment of cashflows, higher earned yields, and higher partnership income: • Net investment income from the fixed maturity portfolio grew 15.4% from the prior-year quarter Net Investment Income Trends Net investment income*($ in millions) Cash and invested assets($ in millions) *Net investment income from partnerships, equities and other investments also includes net investment expenses. **Third quarter and fourth quarter 2025 net investment income included a temporary benefit of approximately $2 million and $4 million, respectively, from elevated cash balances associated with 2025 debt issuance which normalized in the first quarter of 2026. Fixed maturity investment portfolio trends $103.3 $106.4 $109.2 $114.4 $119.2 $13.7 $19.4 $17.7 $5.2 $12.7$117.0 $125.8 $126.9 $119.6 $131.9 3Q25 4Q25 1Q26 2Q26 3Q26 Fixed maturities Partnerships, equities and other investments 84% 83% 90% 90% 88% 8% 7% 8% 8% 7%8% 10% 2% 2% 5% $11,283 $11,505 $11,045 $11,168 $11,178 3Q25 4Q25 1Q26 2Q26 3Q26 Fixed maturities Equities, mortgages and other Cash and cash equivalents = $103.3M $106.4M $109.2M $114.4M $119.2M Fixed maturity investment income ** ** Third Quarter 2026 Results
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12 Corporates 40% RMBS 19% ABS 10% Municipals (taxable) 9% CMBS 6% U.S. Government 4% Limited partnerships 3% Cash and cash equivalents 5% Mortgage loans 2% Equities 2% Other 0% Investment Portfolio – Total Invested Assets and Cash of $11.2 Billion $11.2 billion Invested Assets and Cash As of September 30, 2026 • High-quality, well-laddered fixed income portfolio • 95% of fixed maturity securities are investment grade • Weighted average quality: A+ • Duration: 4.6 years High-quality, well-diversified investment portfolio Fixed maturities: $9.8 billion Equities, cash and other: $1.4 billion As of September 30, 2026 Third Quarter 2026 Results
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13 About The Hanover 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. Third Quarter 2026 Results
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14 Forward-Looking Statements This document and statements by management contains certain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may address, among other things, our expected growth and growth strategy; expected developments in our business, including losses and loss reserves; the impact of our routine reserve reviews; our expectations regarding our revenues, profitability, expenses, efficiency efforts, investment activities or results; investments in, and use of, technology, including artificial intelligence (“AI”), and their expected benefits or impacts on our business, operations, and efficiency efforts; the impact of recently revised policy terms and conditions and targeted property actions; our proposed actions in response to trends in our business and our industry; as well as our expectations, intentions and other statements that are not historical facts. Words such as: “believes,” “anticipates,” “expects,” “intends,” “may,” “hope,” “projections,” “outlook,” “confident,” “should,” “could,” “plan,” “guidance,” “likely,” “on track to,” “potential,” “continue,” “targeted,” “designed,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. We caution readers that accuracy with respect to forward-looking projections is difficult and subject to risks and uncertainties. Those risks and uncertainties, in some cases, have affected, and in the future could affect, our actual results and could cause our actual results for the remainder of 2026 and beyond to differ materially from historical results and from those expressed in any of our forward-looking statements. We operate in a business environment that is continually changing, and as such, new risk factors may emerge over time. We cannot predict these new risk factors, nor can we assess the impact, if any, that they may have on our business in the future. Some of the factors that could cause actual results to differ include, but are not limited to, the following: • Changes in the demand for our products; • Risks and uncertainties related to our growth and operating strategies, including our ability to attract, grow and retain profitable policies in force, to increase rates commensurate with, or in excess of, loss trends, and to manage expenses and execute strategic initiatives effectively; • Adverse claims experience or changes in our estimates of loss and loss adjustment expense reserves, including those arising from catastrophes, inflationary pressures or global unrest, which may result in lower current year underwriting results or adverse loss development and which could negatively impact our carried reserves; • Uncertainties with respect to the long-term profitability of our products, including with respect to newer products, or longer-tail products covering casualty losses; • Disruption in our distribution channels, including the loss or disruption of our independent agency channel, and the impact of competition and consolidation in the industry and among agents and brokers; • Changes in frequency and loss severity trends, exacerbated by fluctuations in economic conditions; • Changes in regulatory, legislative, economic, market and political conditions, particularly with respect to rates, policy terms and conditions, the use of AI and other technologies, privacy and data security, payment flexibility, and regions where we have geographical concentration; • Volatile and unpredictable developments, including severe weather (whether arising from changing climate conditions or weather patterns or otherwise) and other natural physical events, catastrophes, pandemics, civil unrest, war, global conflicts, and terrorist actions, and the uncertainty in estimating the resulting losses; • Limitations on the ability to adjust claims or the availability of sufficient information to accurately estimate a loss at a point in time and the limitations and assumptions used to model property and casualty losses in general; • Risks related to our business being conducted in competitive markets, exposing us to increased risk from competitive pressures, including actions by competitors that may be larger or have greater financial resources than we do; • Risks and uncertainties with respect to our ability to collect all amounts due from reinsurers and to maintain current levels of reinsurance in the future at commercially reasonable rates, or at all, particularly following large catastrophe events or disruptions in reinsurance markets; • Heightened 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, changes in default rates, tariffs, adverse economic, market and political conditions, and other factors that could negatively affect returns on our investment portfolio; • Operating difficulties and other unintended consequences from the introduction of new products, operational model transformation and redesign efforts, organizational changes, and related technology changes and applications, including the use of pricing models and AI, as well as new operating models, particularly as business processes become increasingly more digital; • Changes in our claims-paying and financial strength ratings; • Negative changes in our level of statutory surplus; • Risks and uncertainties relating to our operations and technology, including our information systems, cloud and network infrastructure, information security, and cyber risks (including AI-enabled threats), remote work capabilities, and reliance on third-party or outsourced services, which may negatively impact our ability to conduct business; • Risks, uncertainties or unfavorable developments associated with enacted legislation, litigation matters, social inflation and the possibility of adverse judicial decisions, including those related to exposures to potentially harmful products or substances or those which expand policy coverage beyond its intended scope or award “bad faith,” or other non-contractual damages; and • Other factors described in such forward-looking statements. In addition, historical and future reported financial results include estimates with respect to premiums written and earned, reinsurance recoverables, current accident year “picks,” loss and loss adjustment reserves and development, fair values of certain investments, other assets and liabilities, tax, contingent and other liabilities, and other items. These estimates are subject to change as more information becomes available. Readers should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake any responsibility to update or revise our forward-looking statements, except as required by law. For a more detailed discussion of our risks and uncertainties, see Part I - Item 1A – “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. Third Quarter 2026 Results
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15 Non-GAAP Financial Measures 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, 2025, 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 2025 Annual Report on pages 61-64. 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 and 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 16 of this presentation and in the Financial Supplement. Operating return on 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. Third Quarter 2026 Results
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16 End notes (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, 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 $ 55.5 $ 65.1 $ 207.8 $ 175.8 Specialty 88.1 78.2 240.5 214.0 Personal Lines 103.6 101.1 297.7 252.7 Other (2.8) 3.3 0.5 1.5 Total 244.4 247.7 746.5 644.0 Interest expense (10.0) (11.6) (30.9) (28.7) Operating income before income taxes 234.4 $ 6.60 236.1 $ 6.48 715.6 $ 20.04 615.3 $ 16.84 Income tax expense on operating income (51.3) (1.45) (50.5) (1.39) (154.8) (4.34) (129.2) (3.53) Operating income after income taxes 183.1 5.15 185.6 5.09 560.8 15.70 486.1 13.31 Non-operating items: Net realized losses from sales and other (8.3) (0.23) (20.3) (0.56) (18.6) (0.52) (43.7) (1.20) Net change in fair value of equity securities and other (6.0) (0.17) 11.4 0.31 9.1 0.25 17.4 0.48 Recoveries (impairments) on investments: Credit-related 1.7 0.05 - - (1.3) (0.04) (2.5) (0.07) Intent to sell securities (1.5) (0.04) (0.1) - (2.8) (0.08) (0.5) (0.01) Total recoveries (impairments) on investments 0.2 0.01 (0.1) - (4.1) (0.12) (3.0) (0.08) Income tax benefit on non-operating items 3.3 0.09 2.0 0.06 3.3 0.10 6.9 0.19 Income from continuing operations, net of taxes 172.3 4.85 178.6 4.90 550.5 15.41 463.7 12.70 Discontinued operations (net of taxes): Income from discontinued life businesses 0.3 0.01 0.1 - 0.5 0.02 0.3 - Net income $ 172.6 $ 4.86 $ 178.7 $ 4.90 $ 551.0 $ 15.43 $ 464.0 $ 12.70 Dilutive weighted average shares outstanding 35.5 36.4 35.7 36.5 Basic weighted average shares outstanding 34.8 35.8 35.0 35.9 $ Amount Per Share (Diluted) $ Amount Per Share (Diluted) $ Amount Per Share (Diluted) $ Amount Per Share (Diluted) Three months ended September 30 Nine months ended September 30 2026 2025 2026 2025 Third Quarter 2026 Results
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17 End notes continued (2) Operating return on 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 September 30, 2025, and 2026, 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. For nine months ended September 30, 2025, and 2026, annualized net income and operating income after taxes is calculated by dividing nine months ended net income and operating income after taxes, respectively, by 3 and multiplying by 4. ($ in millions) Net Income ROE 2025 2026 2025 2026 Net income (GAAP) 178.7$ 172.6$ 464.0$ 551.0$ Annualized net income* 714.8 690.4 618.7 734.7 Average shareholders' equity (GAAP) 3,321.3 3,557.0 3,132.2 3,564.0 Return on equity 21.5 % 19.4 % 19.8 % 20.6 % Operating Income ROE (non-GAAP) Operating income after income taxes 185.6$ 183.1$ 486.1$ 560.8$ Annualized operating income, net of tax* (end note (1)) 742.4 732.4 648.1 747.7 Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax 3,512.2 3,910.5 3,400.7 3,816.3 Operating return on equity 21.1 % 18.7 % 19.1 % 19.6 % Nine months endedThree months ended September 30 September 30 ($ in millions) December 31 March 31 June 30 September 30 December 31 March 31 June 30 September 30 2024 2025 2025 2025 2025 2026 2026 2026 Total shareholders' equity (GAAP) $ 2,841.8 $ 3,044.4 $ 3,216.3 $ 3,426.3 $ 3,571.5 $ 3,570.4 $ 3,672.5 $ 3,441.5 Less: net unrealized appreciation (depreciation) on fixed maturity investments, net of tax (401.1) (290.9) (234.7) (147.1) (117.1) (185.0) (204.1) (502.9) Total shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $ 3,242.9 $ 3,335.3 $ 3,451.0 $ 3,573.4 $ 3,688.6 $ 3,755.4 $ 3,876.6 $ 3,944.4 Quarter Averages Average shareholders' equity (GAAP) $ 3,321.3 $ 3,557.0 Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $ 3,512.2 $ 3,910.5 Year-to-date Averages Average shareholders' equity (GAAP) $ 3,132.2 $ 3,564.0 Average shareholders' equity, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax $ 3,400.7 $ 3,816.3 Period Ended Third Quarter 2026 Results
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18 End notes continued (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 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 September 30, 2026 September 30, 2025 September 30, 2026 Total combined ratio (GAAP) 91.1% 89.0% 91.7% 91.2% 92.3% 92.6% 91.8% Less: Catastrophe ratio 3.0% 1.7% 6.3% 5.7% 6.8% 5.4% 6.3% Combined ratio, excluding catastrophe losses (non-GAAP) 88.1% 87.3% 85.4% 85.5% 85.5% 87.2% 85.5% Less: Prior-year reserve development ratio (0.8)% (1.3)% (1.6)% (1.3)% (1.1)% (1.1)% (1.4)% Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 88.9% 88.6% 87.0% 86.8% 86.6% 88.3% 86.9% Core Commercial Total combined ratio (GAAP) 97.3% 96.1% 96.6% 95.7% 100.5% 97.8% 97.7% Less: Catastrophe ratio 3.2% 4.8% 5.4% 4.6% 7.8% 5.2% 5.9% Combined ratio, excluding catastrophe losses (non-GAAP) 94.1% 91.3% 91.2% 91.1% 92.7% 92.6% 91.8% Less: Prior-year reserve development ratio (0.2)% (0.3)% (0.3)% (0.1)% (0.5)% (0.3)% (0.3)% Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 94.3% 91.6% 91.5% 91.2% 93.2% 92.9% 92.1% Specialty Total combined ratio (GAAP) 84.9% 83.9% 84.2% 88.3% 84.0% 86.3% 85.6% Less: Catastrophe ratio 1.7% (0.3)% 2.7% 2.7% 3.4% 3.4% 2.9% Combined ratio, excluding catastrophe losses (non-GAAP) 83.2% 84.2% 81.5% 85.6% 80.6% 82.9% 82.7% Less: Prior-year reserve development ratio (2.8)% (5.3)% (3.9)% (3.0)% (4.0)% (3.7)% (3.6)% Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 86.0% 89.5% 85.4% 88.6% 84.6% 86.6% 86.3% Personal Lines Total combined ratio (GAAP) 89.2% 85.5% 91.5% 88.9% 89.7% 91.4% 90.0% Less: Catastrophe ratio 3.5% 0.2% 9.1% 8.5% 7.9% 6.7% 8.5% Combined ratio, excluding catastrophe losses (non-GAAP) 85.7% 85.3% 82.4% 80.4% 81.8% 84.7% 81.5% Less: Prior-year reserve development ratio (0.1)% (0.1)% (1.4)% (1.5)% (0.1)% (0.3)% (1.0)% Current accident year combined ratio, excluding catastrophe losses (non-GAAP) 85.8% 85.4% 83.8% 81.9% 81.9% 85.0% 82.5% Three months ended Nine months ended Third Quarter 2026 Results
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19 End notes continued (4) 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. (5) 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 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 September 30, 2026 September 30, 2025 September 30, 2026 Total Loss and LAE ratio (GAAP) 59.8% 57.2% 61.0% 60.2% 61.4% 61.7% 60.9% Less: Prior-year reserve development ratio (0.8)% (1.3)% (1.6)% (1.3)% (1.1)% (1.1)% (1.4)% Less: Catastrophe ratio 3.0% 1.7% 6.3% 5.7% 6.8% 5.4% 6.3% Current accident year loss and LAE ratio, excluding catastrophes (non-GAAP) 57.6% 56.8% 56.3% 55.8% 55.7% 57.4% 56.0% Core Commercial Total Loss and LAE ratio (GAAP) 63.6% 61.9% 63.9% 63.2% 67.8% 64.5% 65.0% Less: Prior-year reserve development ratio (0.2)% (0.3)% (0.3)% (0.1)% (0.5)% (0.3)% (0.3)% Less: Catastrophe ratio 3.2% 4.8% 5.4% 4.6% 7.8% 5.2% 5.9% Current accident year loss and LAE ratio, excluding catastrophes (non-GAAP) 60.6% 57.4% 58.8% 58.7% 60.5% 59.6% 59.4% Specialty Total Loss and LAE ratio (GAAP) 47.7% 45.8% 47.8% 51.3% 47.1% 49.3% 48.8% Less: Prior-year reserve development ratio (2.8)% (5.3)% (3.9)% (3.0)% (4.0)% (3.7)% (3.6)% Less: Catastrophe ratio 1.7% (0.3)% 2.7% 2.7% 3.4% 3.4% 2.9% Current accident year loss and LAE ratio, excluding catastrophes (non-GAAP) 48.8% 51.4% 49.0% 51.6% 47.7% 49.6% 49.5% Personal Lines Total Loss and LAE ratio (GAAP) 63.2% 59.1% 65.8% 62.6% 63.8% 66.0% 64.0% Less: Prior-year reserve development ratio (0.1)% (0.1)% (1.4)% (1.5)% (0.1)% (0.3)% (1.0)% Less: Catastrophe ratio 3.5% 0.2% 9.1% 8.5% 7.9% 6.7% 8.5% Current accident year loss and LAE ratio, excluding catastrophes (non-GAAP) 59.8% 59.0% 58.1% 55.6% 56.0% 59.6% 56.5% Three months ended Nine months ended Third Quarter 2026 Results
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20 End notes continued (6) 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. (7) Here, and throughout this document, the expense ratio is reduced by installment and other fee revenues for purposes of the ratio calculation. September 30 June 30 September 30 2025 2026 2026 96.00$ 105.40$ 99.69$ (4.13) (5.86) (14.57) 100.13$ 111.26$ 114.26$ Versus prior quarter Change in book value per share (5.4)% 2.7 % Versus prior-year quarter Change in book value per share 3.8 % 14.1 % 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 Less: Net unrealized appreciation (depreciation) on fixed maturity investments, net of tax, per share Change in book value per share, excluding net unrealized appreciation (depreciation) on fixed maturity investments, net of tax Third Quarter 2026 Results