STATEMENT AS OF MARCH 31, 2021 OF THE HANOVER INSURANCE COMPANY STATEMENT AS OF MARCH 31, 2021 OF THE HANOVER INSURANCE COMPANY ASSETS Current Statement Date 4 1 2 3 December 31 Net Admitted Assets Prior Year Net Assets Nonadmitted Assets (Cols. 1 - 2) Admitted Assets 1. Bonds 5,185,382,667 0 5,185,382,667 5,036,994,855 2. Stocks: 2.1 Preferred stocks 9,218,188 0 9,218,188 5,049,999 2.2 Common stocks 1,739,274,441 794,531 1,738,479,910 1,649,356,734 3. Mortgage loans on real estate: 3.1 First liens 126,033,452 0 126,033,452 116,077,893 3.2 Other than first liens 0 0 0 0 4. Real estate: 4.1 Properties occupied by the company (less $ 0 encumbrances) 43,921,808 0 43,921,808 44,788,154 4.2 Properties held for the production of income (less $ 0 encumbrances) 0 0 0 0 4.3 Properties held for sale (less $ 0 encumbrances) 0 0 0 0 5. Cash ($ (58,953,827) ), cash equivalents ($ 85,711 ) and short-term investments ($ 1,338,630 ) (57,529,486) 0 (57,529,486) (57,030,013) 6. Contract loans (including $ 0 premium notes) 0 0 0 0 7. Derivatives 0 0 0 0 8. Other invested assets 584,566,780 0 584,566,780 597,101,836 9. Receivables for securities 26,293,966 0 26,293,966 3,579,716 10. Securities lending reinvested collateral assets 0 0 0 0 11. Aggregate write-ins for invested assets 0 0 0 0 12. Subtotals, cash and invested assets (Lines 1 to 11) 7,657,161,816 794,531 7,656,367,285 7,395,919,173 13. Title plants less $ 0 charged off (for Title insurers only) 0 0 0 0 14. Investment income due and accrued 36,150,407 241,015 35,909,392 38,075,674 15. Premiums and considerations: 15.1 Uncollected premiums and agents' balances in the course of collection 157,186,015 33,784,069 123,401,946 136,002,462 15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $ 0 earned but unbilled premiums) 1,021,574,018 0 1,021,574,018 1,008,440,761 15.3 Accrued retrospective premiums ($ 0 ) and contracts subject to redetermination ($ 0 ) 0 0 0 0 16. Reinsurance: 16.1 Amounts recoverable from reinsurers 23,817,390 0 23,817,390 52,078,312 16.2 Funds held by or deposited with reinsured companies 4,840,324 0 4,840,324 4,813,336 16.3 Other amounts receivable under reinsurance contracts 0 0 0 0 17. Amounts receivable relating to uninsured plans 0 0 0 0 18.1 Current federal and foreign income tax recoverable and interest thereon 0 0 0 0 18.2 Net deferred tax asset 130,225,745 0 130,225,745 135,558,921 19. Guaranty funds receivable or on deposit 472,146 0 472,146 602,531 20. Electronic data processing equipment and software 82,995,675 75,302,446 7,693,229 7,242,640 21. Furniture and equipment, including health care delivery assets ($ 0 ) 7,379,679 7,379,679 0 0 22. Net adjustment in assets and liabilities due to foreign exchange rates 0 0 0 0 23. Receivables from parent, subsidiaries and affiliates 139,808,850 0 139,808,850 126,639,012 24. Health care ($ 0 ) and other amounts receivable 0 0 0 0 25. Aggregate write-ins for other than invested assets 129,573,754 60,662,055 68,911,699 68,120,343 26. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 12 to 25) 9,391,185,819 178,163,795 9,213,022,024 8,973,493,165 27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts 0 0 0 0 28. Total (Lines 26 and 27) 9,391,185,819 178,163,795 9,213,022,024 8,973,493,165 DETAILS OF WRITE-INS 1101. 1102. 1103. 1198. Summary of remaining write-ins for Line 11 from overflow page 0 0 0 0 1199. Totals (Lines 1101 through 1103 plus 1198)(Line 11 above) 0 0 0 0 2501. Equity in Pools & Associations 36,725,321 0 36,725,321 35,344,847 2502. State Tax Credits 6,124,973 0 6,124,973 9,636,335 2503. Miscellaneous Assets 26,061,405 0 26,061,405 23,139,161 2598. Summary of remaining write-ins for Line 25 from overflow page 60,662,055 60,662,055 0 0 2599. Totals (Lines 2501 through 2503 plus 2598)(Line 25 above) 129,573,754 60,662,055 68,911,699 68,120,343 2 STATEMENT AS OF MARCH 31, 2021 OF THE HANOVER INSURANCE COMPANY LIABILITIES, SURPLUS AND OTHER FUNDS 1 2 Current December 31, Statement Date Prior Year 1. Losses (current accident year $ 393,767,000 ) 3,381,130,593 3,228,896,610 2. Reinsurance payable on paid losses and loss adjustment expenses 1,480,137 1,366,906 3. Loss adjustment expenses 776,575,492 762,611,835 4. Commissions payable, contingent commissions and other similar charges 68,422,509 118,910,157 5. Other expenses (excluding taxes, licenses and fees) 126,708,982 196,856,828 6. Taxes, licenses and fees (excluding federal and foreign income taxes) 16,406,014 24,997,635 7.1 Current federal and foreign income taxes (including $ (1,061,443) on realized capital gains (losses)) 12,294,108 10,515,546 7.2 Net deferred tax liability 0 0 8. Borrowed money $ 0 and interest thereon $ 0 0 0 9. Unearned premiums (after deducting unearned premiums for ceded reinsurance of $ 127,788,544 and including warranty reserves of $ 0 and accrued accident and health experience rating refunds including $ 0 for medical loss ratio rebate per the Public Health Service Act) 1,939,040,992 1,893,941,039 10. Advance premium 18,881,833 19,768,242 11. Dividends declared and unpaid: 11.1 Stockholders 0 0 11.2 Policyholders 3,535,000 3,535,000 12. Ceded reinsurance premiums payable (net of ceding commissions) 47,719,040 42,369,986 13. Funds held by company under reinsurance treaties 1,914,361 2,233,892 14. Amounts withheld or retained by company for account of others 2,533,363 2,890,777 15. Remittances and items not allocated 31,202,013 22,620,418 16. Provision for reinsurance (including $ 0 certified) 469,000 469,000 17. Net adjustments in assets and liabilities due to foreign exchange rates 0 0 18. Drafts outstanding 0 0 19. Payable to parent, subsidiaries and affiliates 11,950,994 21,611,435 20. Derivatives 0 0 21. Payable for securities 77,566,393 180,000 22. Payable for securities lending 0 0 23. Liability for amounts held under uninsured plans 0 0 24. Capital notes $ 0 and interest thereon $ 0 0 0 25. Aggregate write-ins for liabilities 33,178,541 36,842,172 26. Total liabilities excluding protected cell liabilities (Lines 1 through 25) 6,551,009,365 6,390,617,478 27. Protected cell liabilities 0 0 28. Total liabilities (Lines 26 and 27) 6,551,009,365 6,390,617,478 29. Aggregate write-ins for special surplus funds 0 0 30. Common capital stock 5,000,000 5,000,000 31. Preferred capital stock 0 0 32. Aggregate write-ins for other than special surplus funds 0 0 33. Surplus notes 0 0 34. Gross paid in and contributed surplus 146,230,870 146,230,870 35. Unassigned funds (surplus) 2,510,781,789 2,431,644,817 36. Less treasury stock, at cost: 36.1 0 shares common (value included in Line 30 $ 0 ) 0 0 36.2 0 shares preferred (value included in Line 31 $ 0 ) 0 0 37. Surplus as regards policyholders (Lines 29 to 35, less 36) 2,662,012,659 2,582,875,687 38. Totals (Page 2, Line 28, Col. 3) 9,213,022,024 8,973,493,165 DETAILS OF WRITE-INS 2501. Collateral Held 21,309,845 24,604,845 2502. Miscellaneous Liabilities 11,868,696 12,237,327 2503. 2598. Summary of remaining write-ins for Line 25 from overflow page 0 0 2599. Totals (Lines 2501 through 2503 plus 2598)(Line 25 above) 33,178,541 36,842,172 2901. 2902. 2903. 2998. Summary of remaining write-ins for Line 29 from overflow page 0 0 2999. Totals (Lines 2901 through 2903 plus 2998)(Line 29 above) 0 0 3201. 3202. 3203. 3298. Summary of remaining write-ins for Line 32 from overflow page 0 0 3299. Totals (Lines 3201 through 3203 plus 3298)(Line 32 above) 0 0 3 STATEMENT AS OF MARCH 31, 2021 OF THE HANOVER INSURANCE COMPANY STATEMENT OF INCOME 1 2 3 Current Prior Year Prior Year Ended Year to Date to Date December 31 UNDERWRITING INCOME 1. Premiums earned: 1.1 Direct (written $ 387,074,572 ) 370,772,352 349,658,144 1,421,032,707 1.2 Assumed (written $ 726,937,233 ) 692,327,615 690,674,195 2,702,500,111 1.3 Ceded (written $ 129,447,269 ) 123,635,385 117,199,416 464,131,837 1.4 Net (written $ 984,564,536 ) 939,464,582 923,132,923 3,659,400,981 DEDUCTIONS: 2. Losses incurred (current accident year $ 487,209,000 ): 2.1 Direct 178,450,193 150,691,329 616,132,530 2.2 Assumed 421,808,362 374,955,753 1,458,093,465 2.3 Ceded 59,995,196 48,507,393 238,360,817 2.4 Net 540,263,359 477,139,689 1,835,865,178 3.