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SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARENT COMPANY ONLY
 12 Months Ended
Dec. 31, 2025
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

 

2025

 

 

2024

 

 

2023

 

(in millions)

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Net investment income

 

$

21.2

 

 

$

10.5

 

 

$

11.5

 

Net realized losses from sales and other

 

 

(0.2

)

 

 

(4.6

)

 

 

(1.1

)

Other income

 

 

—

 

 

 

—

 

 

 

0.5

 

Total revenues

 

 

21.0

 

 

 

5.9

 

 

 

10.9

 

Expenses

 

 

 

 

 

 

 

 

 

Interest expense

 

 

43.1

 

 

 

34.1

 

 

 

34.1

 

Employee benefit related expenses

 

 

3.9

 

 

 

3.4

 

 

 

3.9

 

Interest expense on loan from subsidiary

 

 

7.0

 

 

 

7.1

 

 

 

7.0

 

Other operating expenses

 

 

9.9

 

 

 

6.5

 

 

 

4.8

 

Total expenses

 

 

63.9

 

 

 

51.1

 

 

 

49.8

 

Net loss before income taxes and equity in income of subsidiaries

 

 

(42.9

)

 

 

(45.2

)

 

 

(38.9

)

Income tax benefit

 

 

13.1

 

 

 

12.6

 

 

 

10.8

 

Equity in income of subsidiaries

 

 

692.0

 

 

 

457.9

 

 

 

62.2

 

Income from continuing operations

 

 

662.2

 

 

 

425.3

 

 

 

34.1

 

Income from discontinued Chaucer business (net of income tax expense
    of $0.1, $0.2 and $0.3)

 

 

0.3

 

 

 

0.7

 

 

 

1.2

 

Net income

 

 

662.5

 

 

 

426.0

 

 

 

35.3

 

Other comprehensive income, net of tax

 

 

284.9

 

 

 

60.9

 

 

 

184.3

 

Comprehensive income

 

$

947.4

 

 

$

486.9

 

 

$

219.6

 

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

 

2025

 

 

2024

 

(in millions, except per share data)

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Fixed maturities - at fair value (amortized cost of $332.7 and $231.1)

 

$

332.0

 

 

$

227.2

 

Equity securities - at fair value

 

 

2.9

 

 

 

2.8

 

Cash and cash equivalents

 

 

449.0

 

 

 

57.4

 

Investments in subsidiaries

 

 

4,130.2

 

 

 

3,451.3

 

Net receivable from subsidiaries

 

 

24.6

 

 

 

25.2

 

Current income tax receivable

 

 

2.0

 

 

 

4.7

 

Other assets

 

 

5.9

 

 

 

3.3

 

Total assets

 

$

4,946.6

 

 

$

3,771.9

 

Liabilities

 

 

 

 

 

 

Expenses and state taxes payable

 

$

12.6

 

 

$

10.7

 

Interest payable

 

 

19.2

 

 

 

10.3

 

Short-term debt

 

 

375.0

 

 

 

61.8

 

Long-term debt

 

 

968.3

 

 

 

847.3

 

Total liabilities

 

 

1,375.1

 

 

 

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

 

 

2,013.5

 

 

 

1,973.6

 

Accumulated other comprehensive loss

 

 

(171.4

)

 

 

(456.3

)

Retained earnings

 

 

3,741.6

 

 

 

3,209.6

 

Treasury stock at cost (25.1 and 24.6 million shares)

 

 

(2,012.8

)

 

 

(1,885.7

)

Total shareholders’equity

 

 

3,571.5

 

 

 

2,841.8

 

Total liabilities and shareholders’ equity

 

$

4,946.6

 

 

$

3,771.9

 

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

 

2025

 

 

2024

 

 

2023

 

(in millions)

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Net income

 

$

662.5

 

 

$

426.0

 

 

$

35.3

 

Adjustments to reconcile net income to net cash provided by (used in)
   operating activities:

 

 

 

 

 

 

 

 

 

Net realized investment losses

 

 

0.2

 

 

 

4.6

 

 

 

1.1

 

Equity in net income of subsidiaries

 

 

(692.0

)

 

 

(457.9

)

 

 

(62.2

)

Dividends received from subsidiaries, net of capital contributed

 

 

1.3

 

 

 

75.5

 

 

 

0.7

 

Deferred income tax benefit

 

 

(1.3

)

 

 

(1.9

)

 

 

(0.4

)

Change in expenses and taxes payable

 

 

11.6

 

 

 

(1.9

)

 

 

(5.6

)

Change in net receivable from subsidiaries

 

 

26.5

 

 

 

23.2

 

 

 

24.1

 

Other, net

 

 

2.4

 

 

 

1.0

 

 

 

1.4

 

Net cash provided by (used in) operating activities

 

 

11.2

 

 

 

68.6

 

 

 

(5.6

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Proceeds from disposals and maturities of fixed maturities

 

 

237.5

 

 

 

187.8

 

 

 

111.4

 

Proceeds from disposals of equity securities

 

 

0.2

 

 

 

0.2

 

 

 

—

 

Purchase of fixed maturities

 

 

(46.1

)

 

 

(103.4

)

 

—

 

Net cash provided by investing activities

 

 

191.6

 

 

 

84.6

 

 

 

111.4

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Proceeds from exercise of employee stock options

 

 

15.4

 

 

 

16.7

 

 

 

6.5

 

Proceeds from issuance of debt, net

 

 

495.0

 

 

 

—

 

 

 

—

 

Dividends paid to shareholders

 

 

(130.6

)

 

 

(124.1

)

 

 

(117.2

)

Repayment of debt

 

 

(61.8

)

 

 

—

 

 

 

—

 

Repurchases of common stock

 

 

(129.2

)

 

 

(26.7

)

 

—

 

Net cash provided by (used in) financing activities

 

 

188.8

 

 

 

(134.1

)

 

 

(110.7

)

Net change in cash and cash equivalents

 

 

391.6

 

 

 

19.1

 

 

 

(4.9

)

Cash and cash equivalents, beginning of year

 

 

57.4

 

 

 

38.3

 

 

 

43.2

 

Cash and cash equivalents, end of year

 

$

449.0

 

 

$

57.4

 

 

$

38.3

 

Included in other operating cash flows was the cash portion of dividends received from unconsolidated subsidiaries. Additionally, investment assets of $292.7 million, $25.8 million and $98.6 million were transferred to the parent company in 2025, 2024 and 2023, 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.