SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARENT COMPANY ONLY

12 Months Ended

Dec. 31, 2023

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	2023			2022			2021
(in millions)
Revenues
Net investment income	$	11.5		$	9.0		$	8.7
Net realized gains (losses) from sales and other		(1.1	)		(1.2	)		1.2
Other income		0.5			0.4			—
Total revenues		10.9			8.2			9.9
Expenses
Interest expense		34.1			34.0			34.0
Employee benefit related expenses		3.9			2.7			1.5
Interest expense on loan from subsidiary		7.0			6.9			6.9
Other operating expenses		4.8			6.8			5.8
Total expenses		49.8			50.4			48.2
Net loss before income taxes and equity in income of subsidiaries		(38.9	)		(42.2	)		(38.3	)
Income tax benefit		10.8			13.6			16.4
Equity in income of subsidiaries		62.2			144.6			444.7
Income from continuing operations		34.1			116.0			422.8
Income from discontinued Chaucer business (net of income tax expense     of $0.3)		1.2			—			—
Net income		35.3			116.0			422.8
Other comprehensive income (loss), net of tax		184.3			(810.7	)		(246.1	)
Comprehensive income (loss)	$	219.6		$	(694.7	)	$	176.7

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	2023			2022
(in millions, except per share data)
Assets
Fixed maturities - at fair value (amortized cost of $296.1 and $310.3)	$	283.5		$	290.3
Equity securities - at fair value		1.2			1.1
Cash and cash equivalents		38.3			43.2
Investments in subsidiaries		3,039.7			2,898.2
Net receivable from subsidiaries		25.3			26.2
Current income tax receivable		2.8			2.1
Other assets		3.2			2.7
Total assets	$	3,394.0		$	3,263.8
Liabilities
Expenses and state taxes payable	$	9.9		$	12.4
Interest payable		10.3			10.3
Debt		908.2			907.4
Total liabilities		928.4			930.1
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		1,939.2			1,913.1
Accumulated other comprehensive loss		(517.2	)		(701.5	)
Retained earnings		2,909.4			2,992.9
Treasury stock at cost (24.7 and 24.9 million shares)		(1,866.4	)		(1,871.4	)
Total shareholders' equity		2,465.6			2,333.7
Total liabilities and shareholders' equity	$	3,394.0		$	3,263.8

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	2023			2022			2021
(in millions)
Cash flows from operating activities
Net income	$	35.3		$	116.0		$	422.8
Adjustments to reconcile net income to net cash provided by (used in)    operating activities:
Net realized investment (gains) losses		1.1			1.2			(1.2	)
Equity in net income of subsidiaries		(62.2	)		(144.6	)		(444.7	)
Dividends received from subsidiaries, net of capital contributed		0.7			12.2			89.5
Deferred income tax benefit		(0.4	)		(2.5	)		(2.0	)
Change in expenses and taxes payable		(5.6	)		4.7			(14.1	)
Change in net receivable from subsidiaries		24.1			18.3			16.9
Other, net		1.4			3.2			4.8
Net cash provided by (used in) operating activities		(5.6	)		8.5			72.0
Cash flows from investing activities
Proceeds from disposals and maturities of fixed maturities		111.4			155.0			238.7
Purchase of fixed maturities	—				(15.3	)		(60.6	)
Net cash provided by investing activities		111.4			139.7			178.1
Cash flows from financing activities
Proceeds from exercise of employee stock options		6.5			13.3			20.5
Dividends paid to shareholders		(117.2	)		(108.9	)		(102.2	)
Repurchases of common stock	—				(30.8	)		(162.6	)
Net cash used in financing activities		(110.7	)		(126.4	)		(244.3	)
Net change in cash and cash equivalents		(4.9	)		21.8			5.8
Cash and cash equivalents, beginning of year		43.2			21.4			15.6
Cash and cash equivalents, end of year	$	38.3		$	43.2		$	21.4

Included in other operating cash flows was the cash portion of dividends received from unconsolidated subsidiaries. Additionally, investment assets of $98.6 million, $98.8 million and $166.0 million were transferred to the parent company in 2023, 2022 and 2021, 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.