Hanover Insurance Group Inc · NYSE:THG
Hanover Insurance — The Hanover Insurance Group — Shareholder Meeting (May 2020)
20 slides from Hanover Insurance's shareholder meeting presentation, May 12, 2020
Slide 1: The Hanover Insurance Group Annual Meeting of Shareholders
The Hanover Insurance Group Annual Meeting of Shareholders May 12, 2020
Slide 2: Responding to the COVID-19 Pandemic
Responding to the COVID-19 Pandemic
Slide 3: Agenda
Agenda Review our: • Competitive position and prospects • Recent performance • Mission to be the premier P&C franchise in the independent agency channel
Slide 4: The Pace of Change is Accelerating
The Pace of Change is Accelerating
Slide 5: We are Prepared and Positioned to Succeed
We are Prepared and Positioned to Succeed Strong financial Proven and Agile, responsive foundation distinctive strategy business model Broad and deep Experienced and partnerships committed team
Slide 6: Strong Performance in 2019
Strong Performance in 2019 Strategic Progress: • Expanded distribution Operating Top- • Enhanced product offerings in NPW Income Per Quartile all segments Growth Share (1) ROE (2) 4.5% + ~20% 12.8% • Drove innovation across the company Improved Improved • Invested in technology, data Combined Expens
Slide 7: Maintained Positive Momentum in First Quarter
Maintained Positive Momentum in First Quarter Operating Income Top-Quartile NPW Per Share (1) ROE (2) Growth + ~14% 13.1% 3.5% Improved Completed $150 Combined Ratio Million ASR
Slide 8: Our Vision and Strategy
Our Vision and Strategy OUR VISION: To be the premier P&C franchise by helping independent agents transform the way customers experience insurance
Slide 9: Our Collaborative and Agile Culture
Our Collaborative and Agile Culture CORPORATE SOCIAL RESPONSIBILITY
Slide 10: Delivering Value
Delivering Value • High-quality products and services • Sustainable profitable growth • Superior returns
Slide 11: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation and comments made by management (or responses to questions) may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be for
Slide 12: Additional Risks and Uncertainties
Additional Risks and Uncertainties Investors are further cautioned and should consider the risks and uncertainties in the company’s business that may affect such estimates and future performance that are discussed in the company’s most recently filed reports on Form 10-K and Form 10-Q and other docu
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures The discussion in this presentation includes reference to certain financial measures that are not derived from generally accepted accounting principles, or GAAP, such as operating income, operating income before taxes (and interest expense) and
Slide 14: End notes
End notes (1) Operating income (loss) and operating income (loss) per diluted share are non-GAAP measures. See the disclosure on the use of non-GAAP measures throughout this presentation under the heading “Non-GAAP Financial Measures.” The following table provides the reconciliation of operating inc
Slide 15: End notes
End notes (2) Operating return on average equity and adjusted operating return on average equity (“Operating ROE” and “Adjusted Operating ROE”) are non- GAAP measures. Operating ROE is calculated by dividing annualized operating income after tax for the applicable period (see end note (1)), by avera
Slide 16: End notes
End notes (2) Continued. December 31, March 31, June 30, September 30, December 31, 2017 2018 2018 2018 2018 Total shareholders' equity (GAAP) $2,997.7 $2,913.1 $2,939.8 $2,982.4 $2,954.7 Less: net unrealized appreciation (depreciation) on fixed maturity investments, net of tax 205.4 0.3 (48.8) (74.
Slide 17: End notes
End notes (2) Continued. December 31, March 31, June 30, September 30, December 31, ($ in millions) 2018 2019 2019 2019 2019 Total shareholders' equity (GAAP) $2,954.7 $2,927.0 $2,941.1 $3,086.8 $2,916.2 Less: net unrealized appreciation (depreciation) on fixed maturity investments, net of tax (27.2
Slide 18: End notes
End notes (2) Continued. December 31, March 31, December 31, March 31, ($ in millions) 2018 2019 2019 2020 Total shareholders' equity (GAAP) $2,954.7 $2,927.0 $2,916.2 $2,736.6 Less: net unrealized appreciation (depreciation) on fixed maturity investments, net of tax (27.2) 90.7 216.0 132.8 Total sh
Slide 19: End notes
End notes (2) Continued. Three months ended Years ended March 31 December 31 December 31 Net Income (Loss) ROE (non-GAAP) 2020 2018 2019 Net income (loss) (GAAP) ($40.0) $391.0 $425.1 Annualized net income (loss)* (non-GAAP) (160.0) 391.0 425.1 Average shareholders' equity (GAAP) (end note (8)) 2,82
Slide 20: Other Non-GAAP Measure
Other Non-GAAP Measure Below is a reconciliation of net premiums written to net premiums written, excluding Commercial Auto and Hanover Program business (what is referred to as growth “excluding targeted underwriting actions” in the prepared remarks by John C. Roche): Years ended December 31 Decembe
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