SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARENT COMPANY ONLY

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARENT COMPANY ONLY STATEMENTS OF INCOME

SCHEDULE II

THE HANOVER INSURANCE GROUP, INC.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

PARENT COMPANY ONLY

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31	2022			2021			2020
(in millions)
Revenues
Net investment income	$	9.0		$	8.7		$	10.7
Net realized gains (losses) from sales and other		(1.2	)		1.2			0.4
Other income		0.4			—			—
Total revenues		8.2			9.9			11.1
Expenses
Interest expense		34.0			34.0			37.0
Employee benefit related expenses		2.7			1.5			2.3
Interest expense on loan from subsidiary		6.9			6.9			7.0
Loss from repayment of debt		—			—			6.2
Other operating expenses		6.8			5.8			9.8
Total expenses		50.4			48.2			62.3
Net loss before income taxes and equity in income of subsidiaries		(42.2	)		(38.3	)		(51.2	)
Income tax benefit		13.6			16.4			22.1
Equity in income of subsidiaries		144.6			440.6			387.2
Income from continuing operations		116.0			418.7			358.1
Income from discontinued life business (net of income tax benefit     of $0.5 in 2020)		—			—			0.6
Net income		116.0			418.7			358.7
Other comprehensive income (loss), net of tax		(827.7	)		(250.3	)		219.9
Comprehensive income (loss)	$	(711.7	)	$	168.4		$	578.6

The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto.

SCHEDULE II (CONTINUED)

THE HANOVER INSURANCE GROUP, INC.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

PARENT COMPANY ONLY

BALANCE SHEETS

DECEMBER 31	2022			2021
(in millions, except per share data)
Assets
Fixed maturities - at fair value (amortized cost of $310.3 and $354.6)	$	290.3		$	356.7
Equity securities - at fair value		1.1			1.2
Cash and cash equivalents		43.2			21.4
Investments in subsidiaries		2,890.1			3,665.2
Net receivable from subsidiaries		26.2			26.0
Current income tax receivable		2.1			6.7
Other assets		2.7			2.6
Total assets	$	3,255.7		$	4,079.8
Liabilities
Expenses and state taxes payable	$	12.4		$	18.0
Interest payable		10.3			10.3
Debt		907.4			906.6
Total liabilities		930.1			934.9
Shareholders' Equity
Preferred stock, par value $0.01 per share; 20.0 million shares authorized;    none issued		—			—
Common stock, par value $0.01 per share; 300.0 million shares authorized;    60.5 million shares issued		0.6			0.6
Additional paid-in capital		1,913.1			1,887.2
Accumulated other comprehensive income (loss)		(705.5	)		122.2
Retained earnings		2,988.8			2,983.2
Treasury stock at cost (24.9 and 25.0 million shares)		(1,871.4	)		(1,848.3	)
Total shareholders' equity		2,325.6			3,144.9
Total liabilities and shareholders' equity	$	3,255.7		$	4,079.8

The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto.

SCHEDULE II (CONTINUED)

THE HANOVER INSURANCE GROUP, INC.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

PARENT COMPANY ONLY

STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31	2022			2021			2020
(in millions)
Cash flows from operating activities
Net income	$	116.0		$	418.7		$	358.7
Adjustments to reconcile net income to net cash provided by    operating activities:
Net realized investment (gains) losses		1.2			(1.2	)		(0.4	)
Net loss from repayment of debt		—			—			6.2
Equity in net income of subsidiaries		(144.6	)		(440.6	)		(387.2	)
Dividends received from subsidiaries		12.2			89.5			60.3
Deferred income tax benefit		(2.5	)		(2.0	)		(8.5	)
Change in expenses and taxes payable		4.7			(14.1	)		5.6
Change in net receivable from subsidiaries		18.3			16.9			15.5
Other, net		3.2			4.8			4.4
Net cash provided by operating activities		8.5			72.0			54.6
Cash flows from investing activities
Proceeds from disposals and maturities of fixed maturities		155.0			238.7			166.6
Purchase of fixed maturities		(15.3	)		(60.6	)		(32.4	)
Net cash provided by investing activities		139.7			178.1			134.2
Cash flows from financing activities
Proceeds from exercise of employee stock options		13.3			20.5			6.3
Proceeds from debt borrowings, net		—			—			296.4
Dividends paid to shareholders		(108.9	)		(102.2	)		(99.5	)
Repayment of debt		—			—			(175.8	)
Repurchases of common stock		(30.8	)		(162.6	)		(212.8	)
Net cash used in financing activities		(126.4	)		(244.3	)		(185.4	)
Net change in cash and cash equivalents		21.8			5.8			3.4
Cash and cash equivalents, beginning of year		21.4			15.6			12.2
Cash and cash equivalents, end of year	$	43.2		$	21.4		$	15.6

Included in other operating cash flows was the cash portion of dividends received from unconsolidated subsidiaries. Additionally, investment assets of $98.8 million, $166.0 million and $185.6 million were transferred to the parent company in 2022, 2021 and 2020, respectively, to settle dividend obligations and other intercompany borrowings and balances.

The condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto.